Bibliography I. Introduction The internal auditor occupies a unique position he or she is employed by the management but is also expected to review the conduct of management which can create significant tension since the internal auditor’s independence from management is necessary for the auditor to objectively assess the management’s action‚ but the internal auditor’s dependence on the management for employment is very clear.’ -------Institute of Internal Auditors (IIA) Although recently the focus of
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5. Which of the following types of engagements would provide assurance about various sorts of financial information (projections‚ pro forma financial statements‚ etc.)? a. Audit. b. Attestation. c. Assurance. d. Compilation. 6. An auditor determines that a client purposefully did not record several legitimate accounts payable as of year end so that the balance sheet would
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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 to do both financial and operational auditing. Their role in auditing has increased dramatically in the past two decades‚ primarily because of the increased size and complexity of many corporations. Because internal auditors spend all of their time with one company‚ their knowledge about the company’s
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misstatements‚ and design substantive tests. An auditor obtains the understanding from researching the clients business. An auditor will take inquires from management and personnel‚ observe client activities and operations‚ walk-through the business‚ and inspect client documents and records. Gathering that information and understanding it will help the auditor plan the audit. The purpose of obtaining an understanding of internal controls allows the auditor to both assess control risk and then detection
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2. A) A client can be put in a more powerful position than the auditor in an auditor-client relationship if the auditor is trying to sell the client additional services. B) According to SOX external auditors are prohibited from providing certain services to clients: book keeping or other things related to the accounting records or financial statements of the audit client‚ they are not allowed to design and implement financial information‚ appraisal or evaluation services‚ internal audit outsourcing
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for an Internal Accountant A client has an out-of-control system. A recommendation has been made to hire an internal accountant. Write a recommendation brief of no more than 700 words for the client‚ justifying the benefits of using an internal auditor. Conclude your recommendation by referring a person for the job based on their background. Explain how the background benefits the client. ACC 544 Recommendation Brief for an Internal Accountant The current company system is out of control
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Chapter 3 Audit Reports Review Questions 3-1 Auditors’ reports are important to users of financial statements because they inform users of the auditor’s opinion as to whether or not the financial statements are fairly stated or whether no conclusion can be made with regard to the fairness of their presentation. Users especially look for any deviation from the wording of the standard unqualified report and the reasons and implications of such deviations. Having standard wording improves
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number of reasons. The external auditor would have extensive knowledge of how the company works due to analyzing statements and performing many audit procedures and tests on the company and therefore would reduce time in order to become effective as an employee. The company would know the former auditor personally and have a good idea of how they would fit in with the existing staff. The former auditor could prepare working papers and assist with the auditors to reduce the time and cost of the
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1. Why is audit planning so important? What is the most important step in audit planning? Why is this step so important? Posted on wed 5/8/2013 Responded to one classmates on 5/08/2013 Auditing planning is important because it helps the auditor determine his/her approach to the audit. There are two considerations that affect the approach: 1). Sufficient appropriate evidence must be accumulated to meet the auditor’s professional responsibility and 2). The cost of accumulating the evidence
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noncompliance with laws and regulations rests with a. auditor c. client management b. client’s legal counsel d. internal auditor 4. The management responsibility to detect and prevent fraud and error is accomplished by a. Implementing adequate quality control system. b. Having an annual audit of financial statements. c. Implementing adequate accounting and internal control system. d. Issuing a representation letter to the auditor. 5. The auditor’s best defense when material misstatements
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