Chapter 1 Auditing and Internal Control Review Questions 1. What is the purpose of an IT audit? Response: The purpose of an IT audit is to provide an independent assessment of some technology- or systems-related object‚ such as proper IT implementation‚ or controls over computer resources. Because most modern accounting information systems use IT‚ IT plays a significant role in a financial (external audit)‚ where the purpose is to determine the fairness and accuracy of the financial statements
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James Woolsey uses the same reasoning to defend US foreign policy and criticize Europe. Comment on this analogy. To what extent do you think American foreign policy has been influenced by Western mythologies? At first glance‚ the analogy between Fred Zinnemann’s masterpiece and Mr. Woolsey’s article is well grounded. However‚ a close scrutiny suggests that few substantial elements differ‚ undermining any serious analogy between the two materials. In the long run‚ I however think that this analogy
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Name Chapter 1: Auditing: Integral to the Economy Description Instructions Modify Add Question Here Question 1 True/False 0 points Modify Remove Question The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. Answer True False Add Question Here Question 2 True/False 0 points Modify Remove Question An audit of financial statements is a form of attestation service
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Concept and significance of Auditing The word ‘audit’ is derived from the latin word ‘audire’ which means to hear. In the olden times‚ when frauds or errors were suspected as regards receipts and payments in business or to verify tax amount payable to the king‚ explanations would be heard from persons responsible for keeping accounts. Today‚ audit is more than just cash verification. It is reporting about the financial position of an organization as disclosed by the Profit and Loss account
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Chapter 1—Auditing and Internal Control TRUE/FALSE 1. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting. ANS: F PTS: 1 2. Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy. ANS: F PTS: 1 3. Both the SEC and the PCAOB require management to use the COSO framework for assessing internal control adequacy. ANS: F PTS: 1 4. A qualified opinion
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Like millions of Americans‚ I listen to Howard Stern on the radio in the mornings. I think he is smart‚ quick and funny. Sometimes he is ’’offensive‚’’ but to be quite frank‚ I am not ’’offended‚’’ because what he says falls within the realm of words and subjects that‚ as an adult‚ I have long been familiar with even without the tutelage of Stern. Unlike millions of Americans‚ I do not listen to Rush Limbaugh on the radio. One reason for that is that I am usually at the movies when he’s on the
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The “Climate Change Debate Overheated after Sceptic Grasped ‘Hockey Stick’” article‚ written by Fred Pearce‚ demonstrates how the hockey stick graph constructed by Michael Mann‚ introduced many disagreements. Fred Pearce notes many individuals such as Steve McIntyre and Ross McKitrick (both referred to as M&M) that believed Michael Mann’s hockey stick graph was created using faulty methods‚ and were considered imprecise. According to Pearce‚ M&M publicized a paper arguing that Mann’s smoothing of
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Chapter 10 Auditing the Revenue Process SEC SAB101: Revenue recognition 1. 有persuasive evidence 有证据 2. Delivery occurred‚ service rendered，东西给了服务于需求 3. Price is fixed/determinable 价格固定 4. 有collectability钱收的回来 Fraud Risk in Revenue cycle: 欺诈风险 1. Side agreement: off-book‚ adjust record to entice customer 2. Channel stuffing: 填塞分销渠道，造成销售假象 inflate sales by forcing product through a distribution channel 3. Related party transaction: 实质重于形式原则substance over form是指企业应当按照交易或事项的经济实质进行会计核算，而不应当仅仅按照它们的法律形式作为会计核算的依据
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Mark Sanborn fills the pages of his book‚ The Fred Factor‚ with tips and stories for becoming a “Fred” You may be wondering‚ what is a “Fred”? The concept of being a “Fred” is based off a real person‚ Sanborn’s very own postman. Though the original Fred was a real person‚ anyone can be a “Fred”. A “Fred” is merely someone who goes above and beyond to do nice things for other people and to be the best they can be at school‚ work‚ and in everyday life (Sanborn‚ 1982). Sanborn gives great advice throughout
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ACC621 Midterm review Internal auditing is an independent objective assurance and consulting acitivity designed to add value and improve an organizations operations. Adding value is provided by improving opportunities to achieve organizational objectives identifying operational improvement reducing risk through exposure through both assurance and consulting. Auditing has its key components - accomplish objectives -evaluate and improve effectiveness of risk management -assurance and consulting
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