produce credible results and "had the potential to undermine investor confidence in the integrity of the securities markets" (The Treasury‚ 2006). As a consequence a number of countries have reviewed their arrangements for independent oversight of the auditing profession. The United States‚ for example‚ has introduced tough external audit regulation under the Sarbanes-Oxley Act of 2002. Canada has also introduced a regulator with extensive powers‚ including a national inspections unit as independent monitor
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Chapter 2— Auditing IT Governance Controls TRUE/FALSE 1. To fulfill the segregation of duties control objective‚ computer processing functions (like authorization of credit and billing) are separated. 2. To ensure sound internal control‚ program coding and program processing should be separated. 3. Some systems professionals have unrestricted access to the organization’s programs and data. 4 . IT governance focuses on the management and assessment of strategic IT resources 5.
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Auditing a Publicly Traded Company Memo: To: Senior Staff Member From: Team A Date: September 13‚ 2010 Subject: Share-based payment reporting and special purpose entities reporting December 16‚ 2004 the Financial Accounting Standards Board issued Statement 123‚ Shared- Based Statement‚ which took the place of Accounting for Stock-Based Compensation and replaced Accounting Principal Board Opinion No. 25 Accounting for Stock issued to Employees. Share-based payment is “a transaction in which
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Social Auditing: Environmental Ethics Issues Characters: George Holt financial director Kim Hopkins internal auditor Senior Management Brian Henderson professional accountant (friend) Phone ringing by George to Kim George: hello!!!! Kim Kim: Yes‚ sir!!! George: Kim‚ I would like to highlight to you‚ that our management board meetings is schedule to next week Monday. Kim: Humm!!! George:I want you to make audit report on the company’s affaires….including graphs and figures…with full
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Question 1: Name two cases in which companies have committed frauds by misstating inventory. Crazy Eddie and Goodner Brothers case are the good example for the inventory fraud cases. Question 2: What makes the intentional misstatement of inventory difficult to detect? When you have the most senior management of the company‚ particularly its financial management‚ consciously setting out to fool the auditors‚ to hide information from them‚ as they testified in the Monus trial‚ it’s very hard to
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CHAPTER 1 REVIEW QUESTIONS 1.2What qualities must an ‘assurer’ have in order for you to feel that their statement has high credibility? An assurer must have the knowledge and expertise to assess the truth and fairness of the information being presented by the preparers. Auditors of financial reports need to be trained accountants with detailed knowledge about the complex technical accounting and disclosure issues required to assess the choices made by the financial report preparers
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The North Face‚ Inc. - Individual Case Synopsis: The North Face‚ a company that has always found a way to sell their product to unique customer‚ didn’t get to where they are today easily. Presently owned by Vanity Fair‚ The North Face was started by Hap Klopp in the mid 1960s with the mission of providing a ready source of hiking and camping gear to customers. Today‚ they offer products ranging from outdoor chairs to backpacks. As the company began to grow‚ so did the goals set by management
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Multiple Choice Questions From CPA Examinations 7-29 a. (2) b. (1) c. (4) d. (1) 7-30 a. (3) b. (3) c. (4) 7-32 1. (5) inquiry of client 2. (7) observation 3. (1) physical examination 4. (2) confirmation 5. (6) reperformance 6. (2) confirmation 7. (3) documentation 8. (4) analytical procedures 9. (5) inquiry of client 10. (6) reperformance 11. (7) observation 12. (1) physical examination 13. (4) analytical procedures 14. (3) documentation 15. (5) inquiry of client 16. (4)
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MEMORANDUM Date : November 10‚ 2010 To : Alchemy Corp. (Aren’t we addressing this memo to our parent co.‚ Alchem Corp.?) From : External Audit Team Subject: Internal Control Weakness and related fraud risk After much research and time spent on understanding the inner working of Alchemy Inc.‚ we have found some internal control weaknesses that could lead to potential fraud. Our audit procedures are designed to address internal control weaknesses and subsequent fraud risks
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During October 2009 the Australian Securities and Investment Commission took action against executives and directors of the Centro Proprieties Group and Centro Retail Group. The executives included the former chief executive officer and the former chief financial officer as well as directors from the board of Centro. The ASIC was proceeding with the case on the basis that they assumed that the aforementioned had breached their statutory duty of care and diligence owed to the Centro entities and had
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