the auditor’s study of business operations for the purpose of making recommendations about economic and efficient use of resource‚ effective achievement of business objectives and compliance with company policies. • The term operational auditing is the most widely used today. • Definition of terms o OPERATIONAL – implies a focus on operations‚ as opposed to financial position. o MANAGEMENT – implies that the information obtained in the audit process is useful to management
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8.0 Background According to Wikipedia‚ Internal auditing is a profession and activity involved in helping organizations achieve their stated objectives. It does this by using a systematic methodology for analyzing business processes‚ procedures and activities with the goal of highlighting organizational problems and recommending solutions. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. Internal auditors are employed by companies
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Siqi Zhao Date: 1/14/2015 To: A424 Case 1.2 Subject: Case Questions 1. Since E&Y performs its auditing duties merely as an external auditor for Lehman‚ the scope of auditing work should be based on the audit needs from Lehman. On the other hand‚ it is very important for external auditors to keep the independent and objective standpoint in order to ensure their auditing opinions are effective. E&Y did not have a responsibility to be involved in the development process of new accounting
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7. A perceived lack of integrity caused irreparable damage to both Andersen and Enron. How can you apply the principles learned in this case personally? Generate an example of how involvement in unethical or illegal activities‚ or even the appearance of such involvement‚ might adversely affect your career. What are the possible consequences when others question your integrity? What can you do to preserve your reputation throughout your career? A perceived‚ or even likely more detrimental to one’s
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Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence‚ audit planning‚ audit stages‚ internal controls‚ confirmations‚ sample size‚ obtaining evidence‚ inventory‚ warehousing cycles‚ Professional Rules of Conduct‚ and auditor’s legal liability. Each of these auditing concepts are explained and then applied to the scenario between Smackey Dog Foods‚ Inc. and Keller CPAs. Questions and
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raised questions regarding the effectiveness and credibility of an Audit. The collapse Enron in November 2001‚ followed by the demise of Anderson was evidence of systematic risk in the US. The Ensuring crisis of confidence in financial reporting and auditing spread to other countries. The Accountancy Foundation Review Board which was at the time responsible for the independent oversight of the UK accountancy professional bodies took the leading role in the auditor independence review in the UK. In
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123 AUDITING AND EDP I. AUDITOR’S CONSIDERATION OF INTERNAL CONTROLS IN AN EDP ENVIRONMENT The second standard of field work requires that we obtain a sufficient understanding of the client’s internal controls (I/C) to plan the audit and assess control risk. We hope that our assessment of control risk shows it to be low so that we can reduce substantive testing‚ thereby reducing audit costs. When EDP is used in significant accounting applications‚ then you must consider the effects the computer
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Name: Course: Tutor: Date: Audit Planning Introduction Auditing is a vital activity‚ in every business activity. The International Auditing and Assurance Standards Board (IAASB) is the overall organization that sets international standards for assurance‚ auditing and other related fields‚ globally. The organization ensures that there is the harmonization of all international and national auditing and assurance standards to enhance uniformity‚ in accounting‚ globally (Spencer
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Internship Report On Auditor’s Independence: A Study on ACNABIN‚ Chartered Accountants Auditor’s Independence A Study on ACNABIN-Chartered Accountants Firm Table of Content CHAPTERS PARTICULARS PAGES Chapter -1 Introduction 1.1 Introduction 1.2 Background 1.3 Scope of the Study 1.4 Objectives of the Study 1.5 Methodology of the Study 1.6 Limitation of the Study Chapter-2 Literature Review 2.1 DEFINITION OF AUDIT 2.2 Understanding
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studied in the context of publicly-held firms‚ and the issue has recently gained increasing research attention also in the context of privately-held firms. The existing studies on privately-held firms have tested the debt pricing implications of auditing per se‚ the auditor’s opinion‚ accruals quality‚ and audit quality proxied by the audit firm’s reputation (i.e.‚ Big 4 vs. non-Big 4)1 and auditor certification
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