preparers. Auditors of financial reports need to be trained accountants with detailed knowledge about the complex technical accounting and disclosure issues required to assess the choices made by the financial report preparers. When undertaking an audit‚ the auditor should use professional scepticism‚ professional judgement and due care. Auditors should be independent of the client. Independent auditors have no incentives to aid the entity in presenting their results in the best possible light. They
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Strategic Systems Audit Introduction As the organizations’ business strategies are becoming more complex over time‚ the auditing practices have been evolving correspondingly over the last century (Bell et al. 1997‚ 10)‚ from a transaction-based audit prior to 1900‚ to risk-based audit approach during the twentieth century to today’s “Strategic Systems Audit” (SSA) as promoted by Solomon and Peecher over the last several years to reinvent the financial statement audit. Strategic Systems Audit focuses on
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INTERNAL AUDIT TRAINING MODULE BASED ON THE INTERNAL AUDIT PROCEDURE MANUAL Ministry of Finance & Economic Development November 2005 TABLE OF CONTENT MODULE I I. INTRODUCTION AND GENERAL BACKGROUND SESSION I INTRODUCTION BREAKING THE ICE LEARNING CONTRACT BASES AND AUTHORITY THE GENERAL CONCEPT OF AUDITING 1 1 1 2 3 SESSION II HISTORICAL DEVELOPMENT OF INTERNAL AUDITING INTERNAL AUDITING IN ETHIOPIA THE SCOPE AND PRACTICE OF INTERNAL AUDITING IN ETHIOPIA NEED TO ADOPT THE PROFESSIONAL
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INTRODUCTION There has been considerable interest in recent years in the role of the audit committee as a key corporate governance mechanism. Corporate governance committees and regulators around the world have addressed the need for effective audit committees‚ with many requiring that listed companies must have a committee (European Union (EU) 8th Company Law Directive‚ 2006; Smith Report‚ 2003; United States (US) Congress‚ 2002). Recognising that the existence of a committee does not
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In the business world nowadays‚ being ethical is vital to maintain the confidence of consumer. Meanwhile‚ the professional ethics of auditors are more significant to increase usefulness of financial statement and users’ confidence towards financial statement. 5 professional ethics that auditors must possess are (1) Objectivity‚ member should not allow bias‚ conflict of interest or undue influence of others to override professional or business judgement. (2)Professional behaviour‚ member should
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Claims require evidence‚ or else they are disregarded‚ but to what extent? Evidence is a fact or a piece of information that portrays the validity of a belief or proposition. For example‚ in science‚ you cannot claim a theory if it is not backed up with supportive evidence. However in matters like the reason of existence or religious beliefs‚ to what extent should evidence be provided? In Hitchens quote‚ he claims that if one makes a statement without providing evidences to back it up‚ the claim
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EMAIL TO BE USED AS AN EVIDENCE IN INDIAN COURT Introduction The courts have always tried to keep pace with development in technology both with regard to the process of the system of justice and the cases that pass through it. The harmonization of the law relating to information technology and evidence by the Indian legislature‚ together with the positive approach of the Indian courts in recognizing and appreciating electronic evidence‚ has equipped India to meet the new challenges of the digital
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References: External audit‚ (2013) Business Dictionary.com‚ http://www.businessdictionary.com/definition/external-audit.html#ixzz2PDjVtmCb. 2013‚ April 07 internal controls‚ (17 March 2011) YouTube http://www.youtube.com/watch?v=siYm9J0pITU. 2013‚ April 01 CIMA P3 Lecture 4 - Internal Controls 1.avi ( 10 Febuary 2010) You Tube http://www.youtube.com/watch?v=A4AxZGzduXQ . 2013‚ April 01 Internal controls and audit controls‚ (14 febuary 2013) You Tube http://www.youtube
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Abstract: The audit function creates several important relationships among the various parties. One of the most significant and potentially problematic relationships is between the audit firm and the audit client. The decision by the audit firm to accept or retain a client is crucial because of the potential risk of being associated with certain clients. Engagement risk is considered to be composed of three components: client’s business risk‚ audit risk‚ and auditor’s business risk. Client’s
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2003 rules on the topic of audit partner rotation states that an audit partner must be rotated off the audit engagement if he/she has worked (been responsible for the issuance of the audit report reflecting the reporting of the financial statements and the dealings with the audit committee and management) on the engagement for the prior five consecutive years and be subject to a five year “time-out period” from the registrant. Previously‚ this rule was that the lead audit partner was to be rotated
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