"Auditors are watchdogs" Essays and Research Papers

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    COVENANT UNIVERSITY‚ COLLEGE OF DEVELOPMENT STUDIES‚ SCHOOL OF BUSINESS‚ DEPARTMENT OF ACCOUNTING COURSE: FORENSIC ACCOUNTING COURSE CODE: ACC 416 WEEK: 10 TOPIC: FORENSIC ACCOUNTING AND FRAUD AUDITING OBJECTIVE: To acquire the knowledge and skills about forensic audit‚ its reporting and documentation. THE CONTEXT OF FORENSIC AUDITING Forensic audit encompasses the examination of evidence regarding an assertion to determine its correspondence to establish criteria carried out in a manner

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    the property of the auditor. In order to keep professional ethic‚ it cannot discover to third party without consent of the client unless limited specified situations mentioned in ISA 230 Documentation and required by law‚ the examples are court order‚ for public interest and so on. The forms of documentation may be flowchart‚ manual‚ narrative note‚ checklist or questionnaire. ------------------------------------------------- Proper features of working papers * Reviewed by auditors with supervisors

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    inventory was overvalued by $60 million and the subsequent impairment crashed the balance sheet of the company (Knight‚ 2016). In fact‚ this surprising impairment announced only three months after the audited report being issued‚ which were assured by auditors with no adverse findings (Knapp‚ 2016). Second‚ the directors told the market that a $43 million profits will be achieved in 2016 financial year; however‚ Knight (2016) revealed that the company was losing almost $5 million per week before its closure

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    Beasley‚ 2010). Many people confuse auditing with accounting because auditing is usually concerned with accounting information‚ and many auditors have a considerable amount of experience in the accounting profession. This confusion results from the certified public accountant title given to individuals who perform audits (Arens‚ Elder‚ & Beasley‚ 2010). Auditors must understand the accounting data to accumulate and interpret audit evidence Certified public accountants perform three primary types

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    Assignment of Auditing

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    standards to emphasize to this point. It means the auditor should be required to take broader processes and consider more types of information when he/she doing auditing job. The auditor must be more careful when he/she using professional judgments to identify the risks of material misstatements. At the same time‚ auditors should take appropriate auditing skills and processes to minimize above potential risk. Professional judgment directly affects auditors to collect of information and to make the auditing

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    I: Understanding Auditor Responsibilities Chapter 4 Professional Liability Learning Objectives: By studying this chapter‚ students should be able to: 1. Discuss the liability environment in which auditors operate‚ the factors that have led to litigation against auditors‚ increasingly including shareholder class actions‚ and the effects of lawsuits on audit firms. 2. Describe the causes of legal action against auditors and identify parties that may sue auditors. 3. Explain

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    technology techniques called CAATS. Computer assisted audit tools and techniques (CAATS) are software’s that increase the productivity of auditors during an audit‚ the software’s can extract data from the system that has to be analyzed. CAATS are also techniques that increase the efficiency and effectiveness of the function of the auditors (Bagranoff‚ 2008). CAATS can be use for the following purposes to validate the integrity of applications and validate the integrity of data. 1

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    Auditing

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    An auditor is setting out to achieve enhanced credibility of information disclosed to increase reliability for the users of the financial statements. A definition from the Committee on Basic Auditing is as follows: A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. The auditor only

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    TABLE OF CONTENTS Table of Contents……………………………………………………………………………………………………….i Acknowledgements……………………………………………………………………………………………………ii Abstract………………………………………………………………………………………………………………………iii Dedication………………………………………………………………………………………………………………….iv CHAPTER ONE –INTRODUCTION 1.0 Introduction……………………………………………………………………………………………………………….4 1.1Background to the problem………………………………………………………………………………………..4 1.2 Objectives of the Study……………………………………………………………………………………………….5 1.3 Research Problem………………………………………………………………………………………………………5

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    Case 1.1

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    they did not tell those auditors the truth about Enron’s fraud. Anderson’s senior managers since they did not check those individual auditors’ work was sufficient or not. They also were responsible to discover the problems in Enron’s. Anderson’s individual auditors since they did not make proper and professional decisions as individual auditors were supposed to do. Regulatory authorities since they were supposed to prevent Enron’s managers to effect Anderson’s individual auditors. Accounting academics

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