1.26 Value of auditing Required: Would you obtain an audit for this company? Explain the reasons for your decision. Yes‚ audits exist because of regulatory mandate (required by government). There are three theories which propose reasons why demand for audits might exist without regulatory mandate: 1. Agency theory (The focus of the agency demand for auditing is more related to the stewardship role of accounting- which is more an examination of what has happened.) The separation of ownership
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YORK UNIVERSITY FACULTY OF LIBERAL ARTS AND PROFESSIONAL STUDIES School of Administrative Studies PART B: AP/ADMS 4551 Auditing and Other Assurance Services Midterm Examination‚ February 21‚ 2010 9:30 a.m.-11:30 a.m. Part B will be distributed 70 minutes from the start of the exam. A YorkCard or acceptable photo identification is required as your identification for this examination. If you do not have identification documents‚ you will be required to personally bring these to your instructor
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International Accounting – Chapter 1 1. Explain why an individual investor might want to invest in an international growth fund. An individual investor might want to invest in an international growth fund if they are seeking to become more diversified. During times when the US stock market is poorly performing‚ it is likely that its foreign counterparts will be doing well because the two markets often have an inverse relationship. An investor might also want to invest in an international growth
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First Integral Recruitment and Management Incorporation Introduction First Integral Recruitment and Management Incorporation is a private owned recruitment firm. Launched in year 2010‚ the First Integral Management is now catering different order based projects within Metro Manila. They recruit‚ hire‚ and deploy in different cities and provinces too. The business is all about hiring the right people for direct hire‚ independent contractor and temporary hires
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Chapter 5 18. a. They should use the resistance of meeting auditing standards and contributory neglegence. Stuart Supply Company management is responsible for the fraud. The fraud was complicated and difficult to discover‚ but the steps recommended by Lauren Yost & Co made it possible. The president of Stuart Supply Company ignored the proposal to count the inventory on the same day‚ and was therefore responsible to breakdown of detecting the fraud due to his decision. Luckily‚ Lauren Yost & Co
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1. An audit charter should: A. be dynamic and change often to coincide with the changing nature of technology and the audit profession. B. clearly state audit objectives for‚ and the delegation of‚ authority to the maintenance and review of internal controls. C. document the audit procedures designed to achieve the planned audit objectives. D. Outline the overall authority‚ scope and responsibilities of the audit function. Answer:_____D______________________ 2. Which of the following
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Hoang Thi Thanh Ha – 13200154 Auditing Assignment 2: 1.What are the factors to consider Inherent Risk? Inherent risk is a measure of the auditor’s assessment of the likelihood that there are material misstatements in a segment before considering the effectiveness of internal control. Factors affecting assessment of inherent risk include: Nature of the client’s business : Industry practices Non-routine transactions Makeup of the population Audit experience : Results of previous audits Initial vs
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References: Gray‚ I and Mason‚ S (2008)‚ The Audit Process: Principles‚ Practice and Cases‚ (4th ed.)‚ London: Thomson Learning Ch 1 Millichamp & Taylor (2008) Auditing Thomson Learning; 9th Revised edition Ch 4 and Ch 13 - 15 Whittington‚ R and Pany‚ K (2009) Principles of Auditing and Other Assurance Services‚ London: McGraw-Hill Ch 6
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industrialized economy and basically comprises of textiles‚ chemicals‚ food processing‚ the agricultural sector and various other industries. It is a surprising fact that Pakistan’s economy is the 27th largest growing economy in the world when measured in terms of Purchasing Power Parity (PPP). The economy has suffered from political instability‚ rising population growth rate and a war of words with the neighboring country India which has proved to be very costly for Pakistan’s economy. There is worldwide
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True/False Questions 1. Fraud is defined as failure to use reasonable care in the performance of services. Answer: False Difficulty: Easy 2. Most of the burden of affirmative proof is on the defendant under common law. Answer: False Difficulty: Medium 3. The Ultramares v. Touche case held that auditors could be held liable to any foreseen third party for ordinary negligence. Answer: False Difficulty: Medium 4. The Securities
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