the business world; auditors too have recognized that the power and speed of computers can greatly assist them in their work. The term “computer-assisted audit techniques” (CAAT) is used to denote computer techniques that auditors can utilize to help them complete their audits in a more effective‚ efficient‚ and timely manner. Use of the prefix “computer-assisted” seems to suggest that an auditor’s use of a CAAT is unusual; in other words‚ the techniques normally used by an auditor are not computer-assisted
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Pierre September 8‚ 2011 Case 5.6: American Fuel & Supply Company‚ Inc. Questions 1 Paragraph 8 of AU section 561 states the auditor responsibilities for the two sets of circumstances. “Unless the auditor’s attorney recommends a different course of action‚ the auditor should take the following steps to the extent applicable: a. Notification to the client that the auditor’s report must no longer be associated with the financial statements. b. Notification to regulatory agencies having
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immaterial. 1 3. A company valued its inventory at current replacement cost. While the auditor believes that the inventory costs do approximate replacement costs‚ these costs do not approximate any GAAP inventory valuation method. 7 4. A client changed its depreciation method for production equipment from the straight-line method to the units-of-production method based on hours of utilization. The auditor concurs with the change. 2 5. A client changed its depreciation method for production
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LO1 One requirement for each type of auditor is independence in some form from the entity being audited. External auditors are often referred to as independent auditors or CPAs. They can may practice as a sole proprietor or as a member of CPA firm. External auditor audit FS for publicly trade and private companies‚ partnerships‚ municipalities‚ individuals and other types of entity. Auditor who are employee of individual companies‚ partnerships‚ government agencies
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ACC 403 Week 4 quiz 3 Question 1 If an auditor fails to fulfill a certain requirement in the contract‚ they may be guilty of: Answer Selected Answer: breach of contract. Correct Answer: breach of contract. Question 2 The assessment against a defendant of that portion of the damage caused by the defendant’s negligence is called: Answer Selected Answer: separate and proportionate liability. Correct Answer: separate and proportionate liability. Question 3
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believe that…the financial reports are not in accordance with (the Act)... including giving a true and fair view..’). An auditor may also perform agreed upon procedures for a client‚ but these do not provide any assurance. The client determines the nature‚ timing and extent of procedures and no opinion is provided to a third-party user. The assurance practitioner is an auditor working in public practice providing assurance on financial reports of publicly listed companies‚ or other entities. Intended
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Help The CICA is the recognized leader in providing information and professional education that clarifies and aids in the application of standards in Canada. The new Canadian Auditing Standards represent a significant change for financial statement auditors‚ and the change to CSQC 1 will affect firms providing assurance services. Chartered Accountants of Canada‚ through the CICA and the provincial
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Module C Legal Liability True / False Questions 1. Auditors are potentially liable for monetary damages and subject to criminal penalties for failure to perform professional services properly. True False 2. Auditors cannot be held liable to their clients for failure to detect material management fraud. True False 3. Joint and several liability is a doctrine that allows a successful plaintiff to recover the full amount of a damage award from any defendant regardless
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330 (Redrafted) Introduction Scope of this PSA 1. This Philippine Standard on Auditing (PSA) deals with the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with PSA 315‚ “Identifying and Assessing Risks of Material Misstatement
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ACCT420 Auditing Test Three – Out of Class Portion Due Monday‚ April 30‚ 2012 1. Listed below are four interbank cash transfers‚ indicated by the letters a‚ b‚ c and d‚ of a client for late December 20X1‚ and early January 20X2. Your answer choice for the next two questions should be selected from this list. For each of transfers a through d indicate whether cash is understated‚ unaffected‚ or overstated by the transfer and provide a brief example of what could cause the situation in which
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