The auditor should use ASA 330.7a and the background information provided as guidance for determining the most appropriate audit approach. AC is a straightforward small business where staff members are related to the owner. This information supports a low inherent risk assessment, as the chance of material misstatements is low. However there is little…
The following provides high-level information about auditing a fictional entity, called Sofitec Computers, created for this case study. This case does not include a complete description of the entity or the industry, nor does it provide comprehensive information on auditing; it is only intended to provide the information that will be necessary and helpful in completing this case study and answering discussion questions.…
Before any strategy takes place, an auditor must determine the end result desired from the Information Technology being used as well as the type of technology being dealt with. The most important thing is security thus it is vital to know this technology in and out to be able to determine its strengths and weaknesses. This allows for proper compensation to combat such attacks whether they are fraudulent or accidental in nature. It is necessary to be familiar with different types of proven viable internal control setups to properly test and gage an IT’s internal control system. There are three different strategies use when testing internal controls. First includes assessing the controls using user control information. In this strategy, an auditor would gather computer-generated reports and compare those to all documentation on specific transactions. This process is also known as auditing around the computer because it deals with more hard copy documents. The next strategy entails using application controls to determine the level of risk…
Laparoscopy is a surgery that uses a thin, lighted tube put through a cut (incision) in the belly to look at the abdominal organs or the female pelvic organs . Laparoscopy is used to find problems such as cysts, adhesions, fibroids , and infection. Tissue samples can be taken for biopsy through the tube (laparoscope)…
This Appendix includes guidance for reviewing the Office of Inspector General’s (OIG’s) attestation engagements conducted in accordance with Government Auditing Standards (GAS), Chapter 6, and the American Institute of Certified Public Accountants’ (AICPA’s) Statements on Standards for Attestation Engagements (SSAE). When an auditor conducts an attestation engagement under generally accepted government auditing standards (GAGAS), the engagement must be conducted in accordance with the SSAEs and additional GAGAS standards. This appendix is not intended to replace auditor judgment, and while comprehensive, the peer review team may also wish to consult with other guidance as warranted. That guidance includes the SSAE and the AICPA’s peer review checklists for attestation engagements (aicpa.org/members/div/practmon/systemreview.asp). In this regard, there are three AICPA checklists covering AICPA requirements and GAGAS: (1) Agreed-Upon Procedures Engagement Checklist – PRP §20,900; (2) Other Attestation Engagement Checklist – PRP §21,000; and (3) Supplemental Checklist for Review of Agreed Upon Procedures and Other Attestation Engagements Performed in Accordance With Government Auditing Standards (Yellow Book) July 2007 Revision – PRP §21,120A.…
The acceptable audit risks, inherent risk, the preliminary judgment about materiality and performance materiality have significant impact on the whole process of the audit and therefore they should be made in the planning phase. The acceptable audit risk helps the auditor to determine the scope and how much evidence to gather during the audit. Inherent risk is the risk of material misstatement in an account before considering the effectiveness of internal control. The assessment of inherent risk in the planning phase is to help the auditor plan the audit by deciding which parts of the audit to emphasize and the extent of testing. The performance materiality and preliminary judgment about materiality determine the nature, timing and extent of further audit procedures. Therefore, to better perform further audit procedures, these should be made in the early phase of the audit.…
Imagine a time where there were no jobs, and the ones that were available weren’t paying enough to help anyone survive. Kids roamed the streets and little cardboard shackle houses were where most of the population lived, it was dangerous and unclean. Then there were the people who would jump aboard a train to seek work in other towns, or just go to see the world. There were approximately 2 million men, 8,000 women (Ganzel), and 250,000 teens (“Riding the Rails” Encyclopedia.com). The ones who had become hobos were all different ages and from all different types of areas and families. They had little to no food or shelter when they were on the move from place to place. They would scrap off of whatever they could find…
I found this article to be very informing, as well as correct. I feel as…
There are three distinct “layers” to the case. At the first level, the issue is ABC analysis for selected “problem customers.” The case illustrates a simplified version of an ABC system actually installed at the company in 2000. Students typically are able to handle this level of the analysis relatively easily.…
CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS CIMA PREFACE As Chartered Management Accountants CIMA members (and registered students) throughout the world have a duty to observe the highest standards of conduct and integrity, and to uphold the good standing and reputation of the profession. They must also refrain from any conduct which might discredit the profession. Members and registered students must have regard to these guidelines irrespective of their field of activity, of their contract of employment or of any other professional memberships they may hold. CIMA upholds the aims and principles of equal opportunities and fundamental human rights worldwide, including the handling of personal information. The Institute promotes the highest ethical and business standards, and encourages its members to be good and responsible professionals. Good ethical behaviour may be above that required by the law. In a highly competitive, complex business world, it is essential that CIMA members sustain their integrity and remember the trust and confidence which is placed on them by whoever relies on their objectivity and professionalism. Members must avoid actions or situations which are inconsistent with their professional obligations. They should also be guided not merely by the terms but by the spirit of this Code. CIMA members should conduct themselves with courtesy and consideration towards all with whom they have professional dealings and should not behave in a manner which could be considered offensive or discriminatory. To ensure that CIMA members protect the good standing and reputation of the profession, members must report the fact to the Institute if they are convicted or disqualified from acting as an officer of a company or if they are subject to any sanction resulting from disciplinary action taken by any other body or authority. CIMA has adopted the following code of ethics. This code is…
This exercise has been done for Deloitte & Touché and the External Audit service line. The scoring for the questionnaire is as follows (per the document)…
Glossary ................................................................................................. 1 General outline and financial impact....................................................... 3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Auditor rotation requirements .......................................17 Annual transparency reports ........................................27 Auditor independence functions ...................................35 Audit deficiency notifications and reports .....................41 Communications with corporations, registered schemes and disclosing entities ..................................49 Regulation impact statement ........................................55 Statement of Compatibility with Human Rights ............95…
Case Question 1: What advantages does Dell gain from its tight control system? What disadvantages does the company experience?…
Related PSAs/PAPSs: PSA 401; PAPS 1001, 1002, 1003, 1008 and 1009 PSA 401 – Auditing in a Computer Information Systems (CIS) Environment 1. Which statement is incorrect when auditing in a CIS environment? a. A CIS environment exists when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit, whether that computer is operated by the entity or by a third party. b. The auditor should consider how a CIS environment affects the audit. c. The use of a computer changes the processing, storage and communication of financial information and may affect the accounting and internal control systems employed by the entity. d. A CIS environment changes the overall objective and scope of an audit. 2. Which of the following standards or group of standards is mostly affected by a computerized information system environment? a. General standards c. Reporting standards b. Second standard of field work d. Standards of fieldwork 3. Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit? a. The auditor needs to obtain a sufficient understanding of the accounting and internal control system affected by the CIS environment. b. The auditor needs to determine the effect of the CIS environment on the assessment of overall risk and of risk at the account balance and class of transactions level. c. Design and perform appropriate tests of controls and substantive procedures. d. The need of the auditor to make analytical procedures during the completion stage of audit.…
PROGRAMME: MSC. ACCOUNTING AND FINANCE COURSE: AUDITING AND ASSURANCE SERVICES CODE: ACC5221 NATURE: TERM PAPER STUDENT NAME: HAMAD OTHMAN RUBEA REG NO: MSC/AF/MOR/010/T.12 LECTURER: MR. KASHESHI TASK: Discuss the business risk that may face any organization and the Auditors concern about these risks.…