[pic] ACCTG 312 SC 2012: Assignment 1 Current issues – scandals in auditing Introduction • For this assignment‚ you are required to research and report back on one of four well known scandals that involve auditors in some way. • It can be commenced after week 1 lectures are completed‚ so gives you a chance to get part of your semester’s work done early. It is due in week 3 (Thursday at 4 pm). • You will also be required to very briefly report to your tutorial group on one interesting
Premium Bernard Madoff Source Mahindra Satyam
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 -
Premium Expense Balance sheet Asset
Applied Auditing Audit of Plant‚ Property and Equipment – Lecture Definition Property‚ plant and equipment are tangible items that: a) are held for use in the production or supply of goods or services‚ for rental to others‚ or for administrative purposes; and b) are expected to be used during more than one period. Recognition An item of PP&E should be recognised only if its cost can be measured reliably and it is probable that future economic benefits associated with the item will
Premium Depreciation Generally Accepted Accounting Principles
ACC 521-011 Example of Auditing Final Exam INSTRUCTIONS: 1. This exam consists of 6 questions‚ on 11 pages. Please answer questions #1. to #5. in the separate EXAM ANSWER BOOK‚ and answer Question #6 - Multiple Choice with explanations - in this book. 2. The time available is 3.0 hours. 3. The exam is worth 50% of your overall course grade. 4. Write your name & student number on the front of the test. 5. This is a closed book test. The only aid that may be used one of the calculator
Premium Auditing Internal control Audit
Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions. Journal of Business Ethics‚ (71)‚ 39-71. Retrieved from http://www.springer.com/ Louwers‚ T.‚ Ramsay‚ R.‚ Sinason‚ D.‚ Strawser‚ J.‚ & Thibodeau‚ J. (2011). Auditing & Assurance Services. New York‚ New York: McGraw-Hill/Irwin. Su‚ S. (2006). Cultural Differences and Accounting Ethics: An Empirical Study for Accounting Students. International Journal of Organizational Innovation‚ 165-181. Retrieved from
Premium Ethics
Part A 1) a)Although a client/company is engaged to perform audits for the 2nd year‚ it does not allow sufficient time for auditor to detect material misstatement. This is due to lack of experience in understanding of the company? Repeat engagement over the years to come would reduce inherent risk Thus‚ the 2nd year of audit would increase inherent risk. b)The bank requires that a/ the company’s interest coverage ratio should be above 9‚ in order to provide loans to the client. From the extract
Premium Debt Generally Accepted Accounting Principles Finance
Contribution Diligence Attitude Yes‚ we do think that performance is the criteria most used in practice. Because‚ most of the companies will determine how much salary they will pay according to how much benefit that a company can get from an employee. 2. “Recognition may be motivational for the moment but it does not have any staying power. It is an empty reinforce. Why? Because when you go to grocery store‚ they do not take recognition as a form of payment!” Do you agree or disagree? Discuss
Premium Money Motivation Payment
Case 1.2 1. Revenue recognition principle under GAAP determines the specific conditions under which income becomes realized as revenue. Generally‚ revenue is recognized only when a specific critical event has occurred and the amount of revenue is measurable. For public company‚ performance of financial statement can have significant impact on stock price. It is essential for the users of financial statements to know that the real revenues are recorded and disclosed and not fraudulent revenues.
Premium Generally Accepted Accounting Principles Income statement
computer installations. 2-2 The major characteristics of CPA firms that permit them to fulfill their social function competently and independently are: 1. Organizational form A CPA firm exists as a separate entity to avoid an employer-employee relationship with its clients. The CPA firm employs a professional staff of sufficient size to prevent one client from constituting a significant portion of total income and thereby endangering the firm ’s independence. 2. Conduct A CPA
Premium Audit Auditing Financial audit
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 reporting-
Premium Auditing Financial audit Financial statements