Auditing Essays & Research Papers

Question 1 Incentives: Financial pressures from changes in the market and industry intense competition (national, regional, local) under cut prices from municipalities that could offer lower prices by using tax revenue. Pressure to meet earnings expectations Stock ownership benefits Retirement benefits Performance based bonuses Maintain growing stock price Maintain industry leadership Maintain reputation Opportunities: Able to use a lot of estimates in depreciation of PPE (over 1/2 of...

AUDITING CHAPTER-HEADS Chapter 1 : INTRODUCTION Chapter 2 : TYPES OF AUDIT Chapter 3 : INTERNAL CONTROL AND INTERNAL CHECK Chapter 4 : VOUCHING AND VERIFICATION Chapter 5 : AUDIT PLANNING AND DOCUMENTATION Chapter 6 : COMPANY AUDITOR Chapter 7 : COMPANY AUDIT Chapter 8 : TYPES OF REPORT UNIT 1 INTRODUCTION Q1. Define an ‘Audit’ and state the various objects of an audit. Or ‘Two main objects...

Audit Documentation Purpose: 1. Main evidence of procedures, work performed on audit 2. Prepare sufficient & appropriate audit documentation on timely basis 3. enhance audit quality 4. facilitate effective review 5. evaluate audit evidence obtained & conclusions reached before finalizing auditor’s report 6. assisting audit team plan & perform for audit 7. assist audit team members’ supervise & direct audit work, discharge responsibilities (Quality...

Contents Executive Summary 2 Methodology 3 Introduction 4 Findings 5 A. Inventory balances and purchases transactions 5 B. Trade receivables and credit sales system 5 C. Property, Plant and equipment (PPE) 6 D. Trade payables transactions and balances 6 Implications 8 A. Inventory balances and purchases transactions 8 B. Trade receivables and credit sales system. 10 C. Property, Plant and equipment (PPE) 12 D. Trade payables transactions and balances 15 Conclusion The following...

Class 1-2 Lecture Notes I. CAS 500, 530 summaries of key concepts II. Introduction to monetary-unit sampling (MUS) also called dollar-unit sampling (DUS) in North America III. MUS mechanics: Sample Planning IV. Giant Stores Case V. MUS Mechanics: Sample Evaluation VI. Some Statistical Theory VII. Summary of Required Reading article: Hall et al. VIII. Solutions to other class questions: EP 1 page 407 SB (10.53), EP 3 page 407 SB (10.55), and DC 1 pages 408-409 SB (10.59)...

 Case One a. During the standard-setting process, the AICPA developed the first auditing standards and principles to both the public accounting community and non-public entities. The auditing standard was called the Committee on Auditing Procedure and was consigned to evaluate, discuss, and issue guidance on auditing-related matters. From 1939 to 2002, the AICPA’s Auditing Standards Board issued another two set of standards, which were Statement on...

MAA 705 Corporate Auditing Assignment 1 T2 2013 Student Name:　 Yameng Guo (Maggie) Danjun Chen (Juns) Student ID : 212101409 211817873 Due date: 　　　　　　28th August 2013 Question 1: Australia has professional requirements and comprehensive legislative on auditor independence. Auditor independence requirements are set out in the Corporations Act 2001, which required the auditor must satisfy these entities is influenced by the behavior...

AUDIT TECHNIQUES I. NATURE and PURPOSE of AUDIT TECHNIQUES Auditing Techniques are the basic tools utilized by auditors to obtain audit evidences. Auditing Technique is defined as any technique as any technique used to determine deviations from actual accounting and controls established by a business or organization as well as uncovering problems in established processes and controls. Auditing Techniques can be used to aid organizations by uncovering errors in business practices and...

CHAPTER AUDIT PLANNING AND ANALYTICAL PROCEDURES THE FALL OF ENRON: DID ANYONE UNDERSTAND THEIR BUSINESS? 8 LEARNING OBJECTIVES After studying this chapter, you should be able to 8-1 Discuss why adequate audit planning is essential. Make client acceptance decisions and perform initial audit planning. Gain an understanding of the client’s business and industry. Assess client business risk. Perform preliminary analytical procedures. State the purposes of analytical procedures and the...

Chapter 1 1.21 What is an audit? Required If an audit is none of the above, what is an audit designed to achieve? The primary objective of an audit is to express an opinion as to whether the financial report is prepared, in all material respects, in accordance with an identified financial reporting framework. An auditor is setting out to achieve enhanced credibility of information disclosed to increase reliability for the users of the financial statements. A definition from the Committee on...

Solutions Manual to accompany Auditing and Assurance Services in Malaysia Third Edition Messier/Glover/Prawitt Margaret Boh Kuala Lumpur • Boston • Burr Ridge, IL • Dubuque, IA • Madison, WI • New York • San Francisco St. Louis • Bangkok • Bogotá • Caracas • Singapore • Lisbon • London • Madrid Mexico City • Milan • Montreal • New Delhi • Santiago • Seoul • Sydney • Taipei • Toronto Solutions Manual to accompany Auditing and Assurance Services in Malaysia Third Edition...

Charnai Frazier- Holley Advance Auditing ACCT 5113 Term Paper March 22, 2013 INTERNATIONAL STANDARD ON AUDITING 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE Appendix 1: Specific Requirements in ISQC 1 and Other ISAs that Refer to Communications with Those Charged with Governance Appendix 2: Qualitative Aspects of Accounting Practices ∗ Conforming amendments to this ISA as a result of ISA 610 (Revised), Using the Work of Internal Auditors, will be effective for audits of...

Introduction to Audit Planning Article by Anne Burke, Examiner Professional 1 Auditing INTRODUCTION This article gives an introduction to audit planning, including: – Purpose and methodology of audit planning – Client acceptance and continuance – Obtain knowledge of client's industry and business – Assess client business risk – Analytical procedures PURPOSE AND METHODOLOGY OF AUDIT PLANNING There are three main benefits from planning audits: it helps the auditor obtain sufficient appropriate...

BF3394 – AUDITING AND PROFESSIONAL ETHICS Module Number: Module Title: BF3394 AUDITING & PROFESSIONAL ETHICS 10 credits Number of Aston Credits: Total Number of ECTS Credits: 5 credits (European Credit Transfer) Staff Member Responsible for the Module: Dr Melina Manochin Finance and Accounting Group ABS Building, Room 410, Extension 3732 m.m.manochin@aston.ac.uk Availability: Please see office hours on door or group administrator, Ms Rosaleen Shirley, ABS 404, Extension 3238 Other...

Chapter 1- Demand for Audit and Assurance Services Assurance Services- Are the independent professional services that improve the quality of information for decision makers. Individuals who are responsible for making business decisions seek assurance services to help improve the reliability and relevance of the information used as the basis for their decisions. Assurance services are valued because the assurance provider is independent and perceived as being unbiased with respect to the...

5(a) Prepare a memo to the partner making a recommendation as to whether Barnes and Fischer should or should not accept Ocean Manufacturing, Inc. as an audit client. Carefully justify your position in light of the information in the case. Include consideration of reasons both for and against acceptance and be sure to address both financial and nonfinancial issues to justify your recommendation. MEMORANDUM To: Jane Hunter From: Corrine Subject: Ocean Manufactory Should be Accepted Date:...

BCAF-05: ADVANCED AUDITING (MAJOR) Objective: This course aims at imparting knowledge about the advanced methods of auditing and there applications. Unit- I: Audit of Limited Companies: Inspection of documents Books and Registers. Audit of Preliminary expanses, profit prior to incorporation, public deposits, managerial remunerations, share capital. The Visible profits and dividends- meaning, provisions of Companies act in regard to declaration and payment of dividend....

AUDITING 4 INTERNAL CONTROL In business control is required for optimum utilizatiion of resources and for maximising the profits.business operations are carried on with the help of human agents and equipments.both require supervision to ensure that tasks assigned to them are carried out properly to avoid wastes and losses. Internal control required for small business is not identical with that required for a large business in the sense that in case of the former,the entire...

SCHOOL OF ACCOUNTING ACCT 3708/18 Auditing and Assurance Services Group assignment details The assignment is to be based on Fairfax Media Limited (ASX code FXJ) and is to be submitted at the commencement of your tutorial in Week 11, as per the Course Outline. The aim of the group assignment is to test students’ ability to integrate skills learnt in Auditing and Assurance Services to analyse a real company from the auditor’s perspective and within the framework of auditing standards....

Week 5 Assignment What is the correct relationship of internal audit to senior management? The correct relationship to exist between internal auditors to senior management is one that meets the risk areas as defined by importance to senior management; this includes assurance and consultative reporting result. The same premise is also true for creating a correct relationship with operational management and the audit committee; under these cases, operational management desires consultative...

Auditing – acc546 (3 credits) In this course, students focus on the auditing practice performed by public accountants. Topics include the CPA profession and the auditor’s role, planning the audit, audit reporting and required communications, evaluating internal controls, audit programs for current assets and liabilities, and audit programs for other business cycles. This graduate-level course is 6 weeks. To enroll, speak with an Enrollment Advisor. Topics and Objectives The CPA...

1) A) Why independence is so crucial for auditors? b) Explain the difference between independence in fact and independence in appearance. Use examples 2) What is the difference between forensic and statutory audit? Explain the other kinds of audit that you know 3) What are the objectives of an audit? Are errors and fraud within the scope of any audit? Explain clearly 4) What is professional clearance? What is the importance of professional clearance in auditing? 5) An audit fee is an...

Chapter 1 (a) Answer: The main difference between a financial report audit, an environmental audit and an efficiency audit is the diverse objective of every audit. To be more precise, the objective of financial report audit is embodied in affording rational assurance on whether the financial report is prepared in almost all respects that is consistent with the financial reporting framework (Moroney, Campbell & Hamilton, 2011, p. 6). Then, the role of the environmental...

DQ 18. Explain how an IT environment affects independent verification. Independent Verification. Verification procedures are independent checks of the accounting system to identify errors and misrepresentations. Information technology drives the financial reporting processes of modern organizations. Automated systems initiate, authorize, record, and report the effects of financial transactions. The completed and stable IT environment can affects independent verification more effective. 20....

________________________________ Chapter 4: Assurance and Consulting Services 97 CHAPTER 4 ASSURANCE AND CONSULTING SERVICES Urton Anderson The Institute of Internal Auditors Research Foundation Disclosure Copyright © 2003 by The Institute of Internal Auditors, 247 Maitland Avenue, Altamonte Springs, Florida 32701-4201. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any...

1. a. To the Board of Directors and Shareholders of L Inc.: We have audited L Inc.’s internal control over financial reporting as of December 31, 2012, based on control criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of Treadway Commission (COSO). L Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial...

Question 1. Ethical Considerations (A) As an auditor when provide professional service and client have to follow the fundamental principle of the code of Ethics Integrity An auditor has to be fair and honest to the client. There is an obligation on the auditor to be straightforward and honest in all the professional and business relationships. In this case, an auditor has to be integrity to present their honest and fair to the client. Even Game’s Limited’s managing director is unhappy...

GREAT ZIMBABWE UNIVERSITY FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING AND FINANCE COURSE CODE: AC211 COURSE TITLE: AUDITING THEORY AND PRACTICE ASSIGNMENT FIRST SEMESTER 2014 QUESTION 1 Brian Ltd was formed on November 2013 in order to manufacture microchips. The directors are unsure of their responsibilities and the nature of their relationship with the external auditors. The audit partner has ask you to visit the client and explain to the directors the more fundamental...

North Maharashtra University, Jalgaon FACULTY OF COMMERCE & MANAGEMENT Structure and Syllabus of – Third Year B.B.M.(E-Comm.)-[Sem. VI] Bachelor of Business Management (BBM.e-Comm.) W.E.F. Academic Year 2013-14 North Maharashtra University, Jalgaon (NACC Accredited ‘B’ Grade University) FACULTY OF COMMERCE & MANAGEMENT BACHELOR OF BUSINESS MANAGEMENT [B.B.M. E-COMM] SEM -VI W.E.F. FROM ACADEMIC YEAR: 2013-14 T.Y.B.B.M.(E-Comm. Sem-VI) STRUCTURE Subject Code Name...

STATE AUDITING IN THE PHILIPPINES Reported by: MYRLA P. SEDENIO RUTH C. TACUJAN A. OBJECTIVES I. To Discuss the State Audit System 2. To Identify Issues and Limitations of Government Auditing 3. To Discuss the Measurement of Government Performance B. INTRODUCTION The Philippine Constitution emphasizes the importance of accountability in the government. Article XI simply and bluntly begins: “Public office is a public trust,” before it adds that officials and employees...

Process Of Auditing,Auditing Vs Investigation INTRODUCTION: Introduction to auditing: Economic decisions in every society must be based upon the information available at the time the decision is made. For example, the decision of a bank to make a loan to a business is based upon previous financial relationships with that business, the financial condition of the company as reflected by its financial statements and other factors.As a result the bank has lost both the principal and the...

The future of auditing Called to account The auditing industry has yet to recover from the damage inflicted by an era of corporate scandals Nov 18th 2004 |From the print edition * * NO ONE becomes an auditor because the job is adventurous. In recent years, however, the profession has been really rather racy. Auditors have been implicated in fraud after fraud. The Enron scandal brought down Arthur Andersen, which had been one of the profession's five giant firms. Now a scandal at...

Abstract Financial audit is about the opinion expressed by auditor with all material respects and any relevant legislation for instance corporation act 2001. A good financial audit should be provided with true and fair view. It is responsible for auditors to provide a truth and fairness opinion as well as information involved in a financial report (MORONEY, CSMPBRLL & HAMILTON 2011). Pre-consideration of develop audit strategy is the assessments of materiality, audit risk (the...

NATURE of AUDITING, ATTESTATION AND ASSURANCE SERVICES Let us understand a few terminologies before going further in the discussion of the details of auditing and assurance since these terms will be used often throughout the text. Auditing, attestation and assurance services are often used interchangeably because they encompass the same decision-process: defining the decision problem, defining the alternative choices, identifying and obtaining information relevant to the decision problem,...

jeudi 18 décembre 2014 AUDITING Questions d’examen 1) Explain why an external auditor can never give absolute assurance aout the quality of the financial statements 2) What do audit firms and the audit profession do to guarantee the quality of the audit work? separate the two parts. 3) Explain the following statement: « assessing risk is the core of the audit? the rest of the audit is designed to provide a response to these identified risks » 4) How would you describe a week internal control...

Auditing and Assurance Services, 14e (Arens) Chapter 24 Completing the Audit Learning Objective 24-1 1) Auditors often integrate procedures for presentation and disclosure objectives with: A) Tests for planning objectives Tests for balance-related objectives Yes Yes B) Tests for planning objectives Tests for balance-related objectives No No C) Tests for planning objectives Tests for balance-related objectives Yes No D) Tests for planning objectives Tests for...

 Case Study 5-4 Audit Client Considerations The Ethics Environment ACCT 530 Week 5 Date: October 5, 2013 Audit Client Considerations With this particular case study I will discuss several questions and facts regarding audit client considerations. 1) A brief summary of the case. 2) Identify key behaviors, attitudes and ethical dilemmas (if any) faced by the auditors. 3) Assess the philosophical and practical alternatives summarized in the case questions and evaluations of...

Campbell Soup Company 1. Identify legitimate business practices that corporate executives can use for the primary purpose of manipulating or “managing” their company’s reported operating results. Are such practices ethical? Defend your answer. Some examples of legitimate business practices that executives can use to manage their company’s reported operating results include: offering customers extended payment terms at the end of the a period to accelerate sales, recording generous...

ACC 3401 Audit and Professional Ethics │LECTURE 1│ Concepts of Auditing Learning Objectives After the lecture, students should be able to: describe the nature, purpose and scope of an audit; describe various basic principles and concepts of auditing and explain their importance in the actual audit procedures; and describe the professional framework within which auditors must operate. 1. Accounting vs. Auditing Accounting - the process of recording, classifying, summarizing and...

AUDITING I. Definitions * Auditing, in a general sense, is a systematic and critical evaluation of the financial position, operating systems, and results of operation of an audited entity. * A systematic process of obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain degree of correspondence between those assertions and established criteria and communicating the results to interested user. * The analytical and systematic examination...

 (TCO 3) Prior to the passage of the Sarbanes-Oxley Act, which of the following was responsible for establishing auditing standards? Student Answer: Securities and Exchange Commission Public Company Accounting Oversight Board Auditing Standards Board National Association of Accounting Instructor Explanation: Page 31 Points Received: 2 of 2 Comments: Question 2. Question : (TCO 1) Which one of the following is not a field work...

Paperless auditing is a very important issue facing the accounting profession today. Several firms throughout the world are faced with the decision to go paperless and many are in the early stages of becoming a paperless office. It is important for a company to go at this task full force or the benefits will be significantly reduced. When the decision has been made to go to a paperless office, several issues present themselves for the firm. These issues include the level and how to implement...

Auditing Standard ISA 315 Understanding the entity and its environment and assessing the risk of material misstatement In IAS 315, the auditor should identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels, through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement....

Control risk The auditor obtains an understanding of the design and implementation of internal Control to make a preliminary assessment of control risk as part of the auditor’s overall Assessment of the risk of material misstatements. The auditor uses this preliminary assessment of control risk to plan the audit for each material class of transactions. However, in some instances the auditor may learn that the control deficiencies are significant such that the client’s financial statements...

In recent years, as the collapse of some renowned companies, the issue of audit independence turns to be more and more concerned by the international regulators. Independence is the cornerstone of the auditing profession, and auditor’s opinion is suspect if lack of independence. However, in some circumstances, some potential threats of audit independence would be generated as jointly provision of non-audit and audit services to the audit client. Although it will create threats to independence,...

92When audit risk is at an appropriately low level 83The possibility that the auditors may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated 49Investigate the identities and reputations of the client’s directors, officers, and major stockholders 51The reputation of management 81The company’s financial strength and credit rating. 85Make inquiries of the client’s banker, legal counsel, and predecessor auditor. 26Determine that...

 AUDIT EVIDENCE Audit Evidence Definition : All the information used by the auditor in arriving at the conclusions on which the audit opinion is based. This includes the information contained in the account records underlying the financial statements and other information. Additionally, audit evidence should be persuasive, rather than convincing. There are different levels of reliability of audit evidence, some providing more evidence than others. There are nine types of audit...

Audit case You are the engagement partner in a firm of chartered accountant and are reviewing the audit fire of a client ABC ltd. the audit manager has recommended that the audit option is qualified because he is in dispute with the directors of ABC ltd. The audit manager wishes the directors to create a large doubtful debts provision against a major debtor that is over six months old. The directors do not witch to alarm the public about the current liquidity problems of their major costumer...

Audit Risk Model Summary First: Let’s think about each of the components of the audit risk model. The auditor selects the overall audit risk they are will to accept, assesses inherent and control risk at the account (or account group) level, and calculates planned detection risk at the account (or account group) level. Audit Risk (AR) is the probability that the auditor issues a clean opinion when the financial statements are materially misstated. Note that acceptable level of audit risk...

Principles of auditing are defined in the ISO 19011, the principles are designed to make an audit an effective and reliable tool for business performance improvements. The audit principles are also designed to achieve consistent conclusions from performed by independent auditors. There are six audit principles that are prerequisites that should be adhered with to achieve consistent audit results. The six principles are integrity, fair presentation, due professional care, confidentiality,...

Group Assignment – HBC614B Company Auditing PART 1 THE INTERNATIONAL AUDITING STANDARDS BOARD AND ITS IMPORTANCE TO THE DEVELOPMENT OF AUDITING STANDARDS IN AUSTRALIA AND NEW ZEALAND The International Auditing and Assurance Standards Board (IAASB) is an independent standard setting body within the International Federation of Accountants (IFAC). Established in 1978, originally known as International Auditing Practices Committee (IAPC), it changed its name to IAASB in early 2001 and was...

The Council of the Malaysian Institute of Accountants has approved this Guideline for publication. These guidelines have been adapted by the Internal Audit Committee of the Malaysian Institute of Accountants from the publication "Guidance for Internal Auditors" issued in June 1990 under the aegis of the Consultative Committee of Accountancy Bodies (CCAB) in the United Kingdom. These guidelines provide advice to internal auditors on the main issues and procedures which they need to consider as...

Is the demand for auditing a regulatory artifact or market driven? Pre SEC era: There is evidence that before legislation on auditing existed there were still forms of auditing. In the medieval times there were the guilds, later audits were conducted by directors or shareholders of a company. In the 19th century US companies voluntarily contracted for audits. Current data on non-SEC companies In 1977, 80% of corporate audit clients of PwC are non-SEC-registrants (Biegler 1977). Privately...

British Journal of Arts and Social Sciences ISSN: 2046-9578, Vol.8 No.I (2012) ©BritishJournal Publishing, Inc. 2012 http://www.bjournal.co.uk/BJASS.aspx Effectiveness of Internal Audit in Tanzanian Commercial Banks Dr.Jayalakshmy Ramachandran Asst. Professor, Nottingham University Business School, Seminyih, Malaysia, Email: jayalakshmy.rama@nottingham.edu.my 60386248779 Dr.Ramaiyer Subramanian , Lecturer, Faculty of Business and Law, Multimedia University, Malaysia. Email:...

MEANING OF AUDITING The word ‘Audit’ is originated from the Latin word 'Audire' which means 'to hear'. In the earlier days, whenever there is suspected fraud in a business organization, the owner of the business would appoint a person to check the accounts and hear the explanations given by the person responsible for keeping the account and funds. In those days, the audit is done to find out whether the payments and receipt are properly accounted or not. The objective of modern day...

1Chapter 26 Internal and Governmental Financial Auditing and Operational Auditing Review Questions 26-1 Internal auditors who perform financial auditing are responsible for evaluating whether their company's internal controls are designed and operating effectively and whether the financial statements are fairly presented. This responsibility is essentially the same as the responsibility of external auditors who perform financial audits. The two types of auditors are also similar in...

The aim of this discussion is to explain how an auditor goes about the process of auditing financial statements and presents the five basic stages that the auditor performed during the financial statement audit at Maryward Primary School in Kwekwe for the year ending 31 December 2012. In order to be in a position to fulfil auditing responsibility to report on the client’s annual financial statements, the auditor followed a series of procedures and activities as required by the auditing...

TABLE OF CONTENT NO. DESCRIPTION PAGE NUMBER 1 PLAGIARISM STATEMENT DECLARATION FORM 2 2 MARKING SCHEMES 3 PLAGIARISM REPORT FROM SAFE ASSIGN 4 INTRODUCTION 5 ANSWER: TOPIC 1- NATURE, PURPOSE AND SCOPE OF AUDIT 6 ANSWER: TOPIC 2 - DISTINCTION BETWEEN ACCOUNTING AND AUDITING 7 ANSWER: TOPIC 3 - TYPES OF AUDITS AND AUDITORS 8 ANSWER: TOPIC 4 - MEANING OF TRUE AND FAIR VIEW 9 ANSWER: TOPIC 5 - DESCRIBE THE PROFESSIONAL ETHICS THAT ARE RELEVANT TO AUDITORS...

The Authority Attaching to Philippine Standards Issued by the AASC Engagement Standards | Application | 1. Philippine Standards on Auditing (PSAs) | * Audit of historical financial statements | 2. Philippine Standards on Review Engagements (PSREs) | * Review of historical financial information | 3.Philippine Standards on Assurance Engagements (PSAEs) | * Assurance engagements dealing with subject matters other than historical financial information | 4. Philippine Standards on...

INTRODUCTION This report consists of 5 reflections related to auditing standards and each case was extracted from internet sources. The purpose of this report is to reflect and understand each case. REFLECTIONS First reflection is on China sky case for its non-compliances with SGX. Next is the case on corporate governance where new rules were proposed to improve risk management and risk control. Third will be the extracted information of executives’ compensation...

Ethics Auditing: Identify the benefits and limits of ethics auditing. Is there a strategic role that ethics auditing may play in a company? Ethics Auditing By definition, an ethics audit is a “systematic evaluation of an organization’s ethics program and/or performance to determine its effectiveness.” (1) This concept of ethics auditing is fairly new and few companies have conducted an ethics audit. However, performing such audits will likely become more mainstream as recent legislation...

Ethical Dilemmas for Auditors Discussion Paper May 2006 1 The Institute of Certified Public Accountants in Ireland Ethical Dilemmas for Auditors Dilemma One – Non-Audit Services 3 Dilemma Two – Fee Levels 6 Dilemma Three – Ethics Partner 7 Dilemma Four – Long Association with the Audit Client 8 Dilemma Five – Commencement in Practice 9 Dilemma Six – Financial Interest in a Client 10 Dilemma Seven – Business relations with audit clients 11...

Fundamentals of Internal Auditing September 5-7, 2007 A Three-Day Tutorial Philadelphia, PA on Internal Auditing September 19-21, 2007 Las Vegas, NV Basics October 15-17, 2007 Houston, TX • Get a well-grounded foundation in the concepts of traditional and operational auditing November 5-7, 2007 San Francisco, CA November 12-14, 2007 • Gain proven tools and techniques for performing value-added audits in the era of Sarbanes-Oxley and PCAOB Boston, MA...

AUDIT PRINCIPALS NERC Auditor Training Introduction to Audit Principles and Techniques Regional Entity Management Group 1 REMG Compliance Auditor Training NERC Reliability Organizations desire to introduce their existing compliance staff to the foundation of audit theory and techniques and its practical application to their compliance and enforcement audits. This course consists of a general auditor training program to meet this goal. The training curriculum was developed in...

Sarbanes–Oxley Act Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. Information and Established Criteria To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. Information can and does take many forms. The...

Financial Control Auditing in an Electronic Environment (e-Auditing) Presented to Dr. Marwa Tarek Presented By: Pierre Guirguis 9104428 Rimon Abd El-Meseih 9104386 Mahmoud Mohamed Refaat Auditing in an Electronic Environment (e-Auditing) * What is e-Auditing? Electronic auditing, or e-Auditing, is computer-assisted auditing that uses electronic records to complete all or part of the audit. If you use a computer to record your business activity and maintain this data...

ACCT1059 Assignment (30%) 3-4 students per group. The written part of the assignment needs to be submitted through Blackboard. The team leader needs to submit the assignment on the team’s behalf, with a cover sheet listing all team members clearly. Please ensure that you submit only one assignment for your team. Due 29th of September, exact time and location ( for hard copies) to be confirmed by the local lecturer. PART A: 10 marks Video capture component ONLY (No written report...

Chapter 1 - Multiple Choice Questions 1. Why do auditors generally use a sampling approach to evidence gathering? A. Auditors are experts and do not need to look at much to know whether the financial statements are correct or not. B. Auditors must balance the cost of the audit with the need for precision. C. Auditors must limit their exposure to their client to maintain independence. D. The auditor's relationship with the client is generally adversarial, so the auditor will not have access...

Auditing Issues - TR Week 10 Most people have the same feeling when they hear the word audit. It usually implements fear in a person, even though that person may have done nothing wrong. Fear is common when the auditors are being brought in because most people don't know what to expect. This is also true when audits are being done for businesses. I know from personal experience that the auditors are not always greeter with kindness. I currently working in an accounting firm and have...

“Accounting did not cause the recent corporate scandals, unreliable financial statements were the results of management decisions, fraudulent or otherwise”. (Lin & Wu, 2006, para. 5) Waste Management, HealthSouth, Enron, Satyam and Madoff are just a few names that come to my mind when I think of fraudulent accounting. Disguised loans, inflated income, improper accounting and misstated earnings, different words all describing the same thing, FRAUD. Fraud affects the company, the...

DEFINITION OF AUDITING Auditing is described as the independent examination of and expression of an opinion on the financial statements of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation. Thus auditing of information systems can be defined as independent examination of and expression of an opinion on the development, documentation and controls of information systems of an enterprise by an appointed auditor in...

 AUDITING – ACC5604 – SEMESTER 1, 2014 SEMINAR 2 - PROBLEM QUESTIONS PROBLEM 2.1 Your text identifies three of the early approaches to auditing, namely the Balance Sheet, Transaction Cycle and Financial Risk Analysis approach. Required: (a) Provide a brief description of each approach. (b) Define the term “Transaction Cycle” and provide two examples of common transaction cycles, together with the account balances arising from the identified cycles. (c) If an...

Chapter 8 Audit Planning and Analytical Procedures PLANNING Why auditor should properly plan engagements: a. To enable the auditor to obtain sufficient appropriate evidence for the circumstances b. To help keep audit costs reasonable c. To avoid misunderstanding with the clients Acceptable Audit Risk is a measure of how willing the auditor is to accept that the F/S may be materially misstated after the audit is completed and an unqualified opinion has been issued. When auditor decides on a lower...

ASSIGNMENT AUDITING Semester 1, 2014 Overview Due date Thursday, 5th June 2014 Length 3000 words (maximum) Introduction This assignment requires you to develop an audit plan. You must refer to the relevant chapters of the textbook for information relating to audit planning. Your submission for this assignment must not exceed 3000 words in length. You must attach the assessment declaration sheet to the front of your assignment. You must sign and date the assessment declaration sheet. You must...

Chapter 1 Assurance Services The broad range of information enhancement services that are provided by CPAs There are two types: -Increase reliability of information -Putting information into a form or context that facilitates decision making Types of Services Assurance Services -Attestation Services Example: Audits of Financial Statements, Examinations of Internal Control -Other Assurance Services Example: CPA ElderCare Prime Plus Services Non Assurance Services -Tax Services...

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users (Boynton & Johnson, 2006). In auditing there are many attributes that describes the auditor’s work. Elements of the Generally Accepted Auditing Standards are followed by auditors. The Generally Accepted Auditing Standards...

25. Fraud is an intentional act involving the use of deception that results in a material misstatement of the financial statements. The two types of misstatements that are relevant to auditors are: The misstatement arising from misappropriation- this occurs when someone steals or misuses an organizations assets. Perpetrators are usually employees and occur when they gain access to cash or cash disbursement accounts and can manipulate them. Misstatement arising from fraudulent financial...

201037076 Puriza U. Topic: Using technology to improve internal audit communications in the Banking Sector Background Internal auditing has come a long way over the last two or three decades. In the past, internal auditing was seen as a mechanism to double-check the thousands of financial transactions that were posted to the accounts each week. Today an internal auditor facilitates the development of suitable controls as part of a wider risk strategy, and provides assurances on the...

ACC 476/726 – AUDITING Sample Exam #2 Prof. Elder Name Dee Falcation This exam contains 12 pages; please check to make sure you have the entire exam. You will have one hour and twenty-five minutes to complete the exam. Total points available on the exam are as follows: | |Points Possible |Points Earned | |Question | |...

Auditing Theory 1. A control which relates to all parts of the EDP system is called a(n) a. Systems control c. Applications control b. General control d. Universal control 2. Which of the following is not an output control? a. Proper authorization of transaction b. Control totals c. Check digits d. Adequate documents 3. Should the auditor feel, after obtaining an understanding of the EDP internal control structure, that control risk cannot be reduced, he or she will a. Issue a disclaimer...

Koger Properties, Inc. 1.) The SEC has a strong case against Goodbread for violating his independence because as it is stated on the AICPA’s website, “Independence shall be considered to be impaired if: During the period of the professional engagement a covered member was committed to acquire any direct or material indirect financial interest in the client.” (aicpa.org 101-1). In Goodbread’s case this refers to the fact that he had shares of stock (direct financial interest) in his possession...

Solutions for the Biltrite Bicycles Inc. Case Module I - Assessment of Inherent Risk 2 Module II – Assessment of Control Risk 16 Module III - Control Test: Sales Processing 28 Module IV - PPS Sampling: Factory Equipment Additions 30 Module V - Accounts Receivable Aging Analysis 34 Module VI - Sales and Purchases Cutoff Tests 41 Module VII - Search for Unrecorded Liabilities 46 Module VIII - Dallas Dollar Bank Reconciliation 48 Module IX- Analysis of Interbank Transfers 51 Module X...

Introduction Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Proper internal control not only ensures that the assets and records are safeguarded, but also creates an environment in which efficiency and effectiveness are encouraged and monitored. This report is mainly focused on internal audit and internal control system in a company. In this case, the company is Kejora Bhd.. This report also...

Advanced Auditing Case Assignment 2.3 1. (a) When confirming year-end accounts receivable, auditors hope to accomplish the objective of obtaining evidence from third parties to evaluate the client’s assertions of year-end accounts receivable amounts. The client’s assertions that accounts receivable confirmation can effectively address are existence, rights, and valuation. (b) When performing year-end sales cutoff tests, auditors hope to accomplish the objective of obtaining evidence from...

Comment on the 10 major steps in the fraud risk model 1. Understand the nature of fraud by identifying the factors associated with fraud that are outlined in the fraud triangle. The factors include rationalization, opportunity, and incentive (ROI). Incentive/pressure to commit fraud Fraudulent financial reporting Management compensation schemes Financial pressures to improve company’s earnings and balance sheet Personal wealth tied to either financial results or survival of company...

 HES4811 Integrated Environmental Management Systems and Auditing ASSIGNMENT 03: Environmental Auditing Assignment Number: 337106 Contents List of Tables Table 1: Compliance Audits vs. Management Audits 7 List of Figures Figure 1. Clariant Global Chemical Company’s environmental goals for 2020. 12 3.0 Introduction Environmental auditing’s purpose, its three main categories, and the key steps involved in running an environmental audit...

Auditing Introduction Letter Leslie Brian ACC/546 August 6, 2012 Eddie Loussararian Auditing Introduction Letter Greetings! To start off, I would like to introduce myself; my name is Leslie Brian, and I am a lead auditor for Nortex, Inc. Our organization is a leading firm in the industry, with offices in more than 20 states. We appreciate your company’s interest in our services. I have taken the opportunity to outline the following: the services we offer and their...

Chapter 7 Case – 7-54 "Going Concern" Please respond to the following: From the e-Activity, analyze the auditor’s responsibility to determine if a company can continue as a going concern. From your analysis, propose at least two (2) key factors that the auditor should consider when determining an entity’s ability to continue as a going concern. Provide a rationale to support your proposal. SAS 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (AICPA,...

Chapter 2 2-7 The Public Company Accounting Oversight Board (PCAOB) is responsible for establishing auditing standards for audits of public companies. The ASB is responsible for establishing auditing standards for private companies. 2-10 The criticism of this statement according to the ten generally accepted auditing standards that the standards should provide useful guidelines for conducting an audit to improve practitioners’ quality of their performance. Based upon ten generally accepted...

ACCOUNTING 54-AUDITING 88 4th Street Campus Spring 2015 Tony Viertel CRN: 35238 Section: 581 Units: 3 Class Meeting: Wednesday 6:00 p.m. – 8:50 p.m. Class Room Location: 321 Prerequisite: Accounting II Office: Cloud Hall, Room 405 Office hours: Wednesday & Thursday 3:30 p.m. – 4:30 p.m. or by appointment Telephone: (415) 452-7407 E-mail: cviertel@ccsf.edu REQUIRED TEXTS & WEBSITE ACCESS Course Name: Spring 2015 Accounting 54 Course ID: viertel75704 Auditing and Assurance Services, 15th ed.,...

Chapter 5 18. a. They should use the resistance of meeting auditing standards and contributory neglegence. Stuart Supply Company management is responsible for the fraud. The fraud was complicated and difficult to discover, but the steps recommended by Lauren Yost & Co made it possible. The president of Stuart Supply Company ignored the proposal to count the inventory on the same day, and was therefore responsible to breakdown of detecting the fraud due to his decision. Luckily, Lauren Yost &...

Generally Accepted Auditing Standards Paper Madeline Cates ACC/491 Contemporary Auditing 1 November 7, 2012 Thomas A. House Auditing is extremely important to our businesses, our state and federal government, investors, banks, and our overall economy. Without auditing there would be plenty of room for mistakes. Boynton & Johnson (2006) define auditing as the following, “A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions...

The Nature and Purpose of Auditing Content : • Definition and objectives of auditing • Types of audits • Development of auditing • Qualities of an auditor • Auditing process Objectives : Students should be able to : • Describe the definition and the objectives of auditing. • Distinguish between different types of audits. • Briefly describe the development of auditing. •...

Question #1 (AICPA.900546AUD-AU) | | | The first general standard requires that an audit of financial statements is to be performed by a person or persons having | A. Seasoned judgment in varying degrees of supervision and review. | | B. Adequate technical training and proficiency. | | The first general standard requires that the audit be performed by individuals with adequate technical training and proficiency as an auditor. The auditor must have obtained a proper education in...

Fundamentals Level – Skills Module Auditing Theory (Philippine Standards) Final Departmental Examination Time allowed Reading and planning : 10 minutes Writing : 1 hour and 50 minutes Do NOT open this paper until instructed by the proctor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the proctor. This subject tests the candidates’ conceptual knowledge and understanding of...

ACC411 Seminar 1 Auditing Research Paper Auditing Research Paper Auditors, like accountants, prepare and examine financial records to make sure they comply with generally accepted accounting principles and other laws. External auditors review clients’ financial statements for accuracy. Internal auditors check for accuracy and mismanagement of an organizations funds. Auditors can become certified as a CIA, Certified Internal Auditor, after graduating college with a bachelor’s degree and...