would mean the fees would change depending upon what actions are taken or what the results are. You didn’t ask for the answer‚ but the source below shows the major auditing standard that would be broken if the auditing fee is based on the profit of the company. It has to do with the independence of the auditor. Basing the auditing fee on profit could affect the impartiality of the auditor or at least give the appearance of bias. Thorne works in a public accounting firm and hopes to eventually
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Big Five auditing firms at the time. These scandals reignited a debate over the GAAP based rules at the time and led to the establishment of the Sarbanes-Oxley Act in 2002. The act provided a much stricter set of guidelines for auditing standards‚ increased corporate responsibilities‚ and created the PCAOB to overlook specific processes and procedures for compliance to these standards. The fraud scandals leading to Sarbanes Oxley changed the accounting world and in particular‚ auditing. While there
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Answers to the Case of A Day in the Life of Brent Dorsey Question 2: The consequences for Brent‚ the auditing firm‚ and others involved that may arise from “eating time‚” as suggested by Scott. “Eating time” can lead to inaccurate budgeting for future audits. Managers in preparing the budget for an audit‚ often use prior years’ audits as a guide. Managers will see that the job was completed in a shorter time in previous years and this will prompt them to prepare next year’s budget based
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could be dangerous to organization. Robert‚w(1996). The writer intends to investigate that by combining and integrating all the variety of ideas‚ opinion to develop a sample of auditing model which represents training and development best practices. The authors rely on organizational level because in this level of auditing seeks the performance‚ capability of training and development and its interest towards the organization. FINDINGS: EVENT/PROGRAMME LEVEL: At the event level the approach to
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3. a) Three parties that auditors might be held liable for negligence are : 1. Liability to client (Better Production & Co) 2. Liability to third party who use the information (Usahasama City Bank) 3. Liability to the foreseen user (who rely on the auditor’s financial statement) b) No. Aiman & Co can not be held liable to Usahasama & Co. The only action available for financial loss caused by a false financial statement was in the tort of deceit. In order to succeed‚ the claimant (Usahasama)
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If You Need Love Get a Puppy. Auditing Guidance: AU § 150.02: This is the standard on independence in mental attitude in all matters relating to the audit. The auditor needs to be aware of any personal factors that could impair his independence and objectivity. AICPA Code of Professional Conduct ET Section 101.02 Rule 101- 1 Independence: This section outlines specific relationships that impair auditor independence. There is a provision for other considerations that defines the reasonable
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Behind Closed Doors at WorldCom: 2001 1. Two General Accounting employees—Dan Renfroe and Angela Walter—made journal entries in the amount of $150 million and $171 million‚ respectively‚ without detailed support. It was noted that this was not out of the ordinary at WorldCom. In your opinion‚ was this a proper accounting practice? Explain. Though this may not be out of the ordinary for WorldCom‚ this is not a correct accounting practice. The way the entries were made does not comply with the proper
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How has the Sarbanes-Oxley Bill influenced reporting by governmental agencies and not-for-profit organizations? Does the Public Company Accounting Oversight Board have authority to establish auditing standards for not-for-profits? What specific steps might governmental agencies or not-for-profits take to comply with the requirements of the Sarbanes-Oxley Bill? 1. Reporting for governmental agencies and not-for profits has become more detailed including management representations related to the
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NALGA National Association of Local Government Auditors NALGA Peer Review Committee 1220 SW Fifth Ave.‚ Room 120 Portland‚ OR 97204 (503) 823-3542 October 27‚ 2000 Mr. Ronald A. Coen‚ Director Fairfax County Internal Audit Office Fairfax‚ Virginia 22035 Mr. Coen: We have completed an external quality control review of the Fairfax County Internal Audit Office for audits initiated during the period July 1‚ 1999 through June 30‚ 2000. In conducting our review‚ we followed the standards and
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Adeniji‚ A. (2004): Auditing and Investigation. Lagos‚ Value Analysis Publishers. Agbaje‚ F. (2007). Nigeria Auditors and the Distressed Finanancial Sector. The National Accountant‚ 6(4) 36-37. Buhari(2001).Internal auditor control system. Journal of auditor (2001) 42. 423-425. Dyck‚ A.‚ Morse‚ A. and Zingales‚ L. (2008). Who blows the whistle on the Corporate fraud? www.ssrn.com (Retrieved 8/03/2011) Gay‚ G.‚ Schelluch‚ P.& Reid‚ I. (2002): Users’ Perceptions of the Auditing Responsibilities for
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