AUDIT EVIDENCE Audit Evidence Definition : All the information used by the auditor in arriving at the conclusions on which the audit opinion is based. This includes the information contained in the account records underlying the financial statements and other information. Additionally‚ audit evidence should be persuasive‚ rather than convincing. There are different levels of reliability of audit evidence‚ some providing more evidence than others. There are nine types of audit evidence
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The eruption of Mt. Vesuvius in Pompeii was in the year of 79 CE on August 24th. The volcano stood 6‚500 feet high and was 12 miles north of Pompeii‚ but the eruption had strong winds‚ causing tons of ash to rain on Pompeii and its neighbors. Four days before the eruption there were small earthquakes that started to become more frequent‚ but the residents didn’t think anything was wrong because earthquakes were very common. Very quickly there was 9 feet of ash that covered the entire city‚ and
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Facing Mt. Kenya Jomo Kenyatta someone who came from a Gikuyu tribe but he eventually adapted to the new changing Africa. Kenyatta actually was the first President and he also adapted to the Western influences by wearing a suit and driving in Cadalacs. But even though he did very well in adapting he was still very proud of his heritage and the old ways of his people. There even seems to be a tone in his writing of nostalgia‚ and a little bit of bitterness to the people who came in to start the
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[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
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Mt St. Helens Introduction Mount St. Helens is a volcanic mountain in the Cascade Range in Western North America‚ in the state of Washington. It is‚ perhaps‚ the most famous mountain in the range‚ and certainly is the most active volcano in the area today. In fact‚ it has probably been the most active of the Cascade volcanoes for over 4000 years. If the eruption of 18th May 1980 follows the pattern of previous eruptions the mountain will remain very active for perhaps ten or twenty years before
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“Accounting did not cause the recent corporate scandals‚ unreliable financial statements were the results of management decisions‚ fraudulent or otherwise”. (Lin & Wu‚ 2006‚ para. 5) Waste Management‚ HealthSouth‚ Enron‚ Satyam and Madoff are just a few names that come to my mind when I think of fraudulent accounting. Disguised loans‚ inflated income‚ improper accounting and misstated earnings‚ different words all describing the same thing‚ FRAUD. Fraud affects the company‚ the consumers
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Auditing Theory 1. A control which relates to all parts of the EDP system is called a(n) a. Systems control c. Applications control b. General control d. Universal control 2. Which of the following is not an output control? a. Proper authorization of transaction b. Control totals c. Check digits d. Adequate documents 3. Should the auditor feel‚ after obtaining an understanding of the EDP internal control structure‚ that control risk cannot be reduced‚ he or she will a. Issue a disclaimer b. Issue
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Audit case You are the engagement partner in a firm of chartered accountant and are reviewing the audit fire of a client ABC ltd. the audit manager has recommended that the audit option is qualified because he is in dispute with the directors of ABC ltd. The audit manager wishes the directors to create a large doubtful debts provision against a major debtor that is over six months old. The directors do not witch to alarm the public about the current liquidity problems of their major costumer because
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Campbell Soup Company 1. Identify legitimate business practices that corporate executives can use for the primary purpose of manipulating or “managing” their company’s reported operating results. Are such practices ethical? Defend your answer. Some examples of legitimate business practices that executives can use to manage their company’s reported operating results include: offering customers extended payment terms at the end of the a period to accelerate sales‚ recording generous reserves
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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 -
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