Generally Accepted Auditing Principles Generally Accepted Auditing Principles There are many different types of audits including financial statements audit‚ the operational audit and the compliance audit. Either an internal auditor or an external auditor from another firm can conduct these various audits. “The American Accounting Association defines auditing as a systematic process of objectively obtaining and evaluating the accounts of financial records of a governmental‚ business‚ or
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Heather Sheetz Accounting 491 Julie Oldham March 28‚ 2008 Generally Accepted Auditing Standards Generally Accepted Auditing Standards or GAAS is “a set of systematic guidelines used by auditors when conducting audits on companies’ finances‚ ensuring the accuracy‚ consistency and verifiability of auditors’ actions and reports” (Lexico Publishing Group‚ 2008). The following paper will explain the elements of GAAS and how GAAS is applied to audits. GAAS has three elements that must be used during
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Assignment 1: Auditors and Regulatory Oversight Desislava Tabakova ACC 403 – Auditing I Professor Ashley Braun Harper November 2‚ 2014 “Olympus Scandal” The Olympus Corporation scandal is one of the biggest scandal’s to break. Olympus Corporation‚ the Japanese maker of cameras and medical imaging equipment is a huge corporation that lasted over two decades. 1- Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial
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someone uses information or facts that go along with their original thought‚ to “confirm” that they are right. This tendency could result in a lack of audit effectiveness because an auditor may only try to use evidence to support what they think the answer is‚ and not look for evidence that would go against their case. The auditor might be
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audit staff of what needs to be done (Oliverio‚ 1984). Fraud and bankruptcy often are found in lawsuits against auditors frequently due to the lack of evidence that the auditors should have obtained to support their opinions. The auditor ’s detection and disclosure responsibilities in these areas are the focus of the Private Securities Litigation Act of 1995. The act reaffirms the auditor ’s responsibilities regarding SAS No. 54 Illegal American Accounting Association (AAA) (1993)‚ A Statement of Basic
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audit risk: Answer Selected Answer: auditors accept some level of risk in performing the audit function. Correct Answer: auditors accept some level of risk in performing the audit function. Question 2 2 out of 2 points ________ misstatements are those where the auditor can determine the amount of the misstatement in the account. Answer Selected Answer: Known Correct Answer: Known Question 3 2 out of 2 points When auditors allocate the preliminary judgment about materiality
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26th July‚ 2012 A. H. Lutful Hassan Deputy Director‚ Career Guidance & Placement (CGP) And Adjunct Faculty School of Business Independent University‚ Bangladesh. Subject: Submission of assignment on “Planning of audit & independence of auditor”. Dear Sir‚ I am proud to present you my assignment which has done under your instruction. I would like to thank you for giving me the opportunity to work on such assignment. By doing this assignment‚ I gain lots of valuable knowledge not only
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obtain an understanding of the client and its environment‚ the auditor shall obtain an understanding of the following: The requirements of the applicable financial reporting framework relevant to accounting estimates‚ including related disclosures How management identifies those transactions‚ events and conditions that may give rise to the need for accounting estimates to be recognized or disclosed in the financial statements. And the auditor shall make inquiries of management regarding changes in circumstances
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and Post-Audit Responsibilities Critique Paper #03: Completing the Audit and Post-Audit Responsibilities Summary The first article of Moez Bennouri‚ entitled “Does Auditors’ Reputation ‘Discourage’ Related Party Transactions? The French Case” studies the relationship between the frequency of RPTs and the external auditors’ reputation. Regulators‚ standard setters and market participants consider related party transactions a major problem in financial markets. The quality of external auditing
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falsified paper profit accounted for almost 90% of ZZZZ Best’s revenue. Deception of Auditors: 1. False confirmations Since most of revenue came from insurance restoration contracts‚ George Greenspan‚ the first auditor of ZZZZ Best‚ contacted Tom Padgett to confirm the existence of the insurance restoration contracts. Padgett‚ being in on the fraud‚ lied and gave Greenspan a positive answer. 2. Misleading auditors: Barry Minkow dismissed Greenspan after his audit of 1986 financials and hired Larry
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