particular and specialized actions that auditors take to obtain evidence in a specific audit engagement Auditing Standards: quality guides to the audit that apply to all audits 3 categories of GAAS: 1. General Standards 2. Standards of Field Work 3. Standards of Reporting ****Fundamental Principle: Responsibility**** The fundamental principle of responsibility relates to the personal integrity and professional qualifications of an auditor Auditors are responsible for : 1. Having appropriate
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Safety Auditors Training Scheme (SATS) Alexander CS CHAN MSc(Eng)‚ DipOccHyg‚ MIPlantE‚ MIOSH‚ FHKISA‚ RSO Industrial Centre‚ The Hong Kong Polytechnic University‚ Hong Kong SAR. Albert W.K. KWOK MSc(Civ)‚ CEng‚ MICE‚ MIStructE‚ MHKIE‚ MIOSH‚ POSHA. Industrial Centre‚ The Hong Kong Polytechnic University‚ Hong Kong SAR. Abstract Safety audit is not new in Hong Kong. It starts in multi-national oil and local power supply companies. Starting from 1996‚ safety audit has been
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(SEC) in 2002 for its fraudulent accounting manipulations‚ which inflated $1.5 billion earnings from 1997 to 2000. Several parties got their hands dirty in the scandal‚ including the then senior Xerox management‚ the Board of Directors and external auditor KPMG LLP. The failure of those parties in discharging their duties induces the further thought of trust and accountability among them and shareholders. Furthermore‚ the external environment in 1990s‚ including economic bubble boom‚ irrational investors
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ABSTRACT The purpose of this paper is to identify the existence of audit committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector but there are small differences in the implementation between this two sector that has been discuss in this study. This study also discuss about the characteristic of audit committee‚ effectiveness of audit committee‚ the
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particular concern show a true and fair view of the earnings and financial state of affairs.This is possible only when all the accounts are properly verified. Auditor has to discover errors and frauds while performing his duty. The objects of auditing include: 1) Primary objects 2) Secondary objects PRIMARY OBJECTS: Primary objects is to report to the shareholders of a company: i) Whether the profit and loss account and the balance sheet are properly drawn up according to the Companies Act ‚1956
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Cendant Corporation Evaluating Risk of Financial Statement Fraud and Assessing the Control Environment Describe the auditor’s responsibility for considering a client’s internal controls Describe the auditor’s responsibility to detect material misstatements due to fraud Identify red flags present during the audits of CUC International‚ Inc.’s financial statements‚ which suggest weaknesses in the company’s control environment (CUC was the predecessor company to Cendant Corporation) Identify
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Phar-Mor‚ Inc was a thriving discount grocery store in the late 1980’s. Phar-Mor was moving product quickly but profit margins were not significant enough to pay the bills. By the early 1990’s‚ Phar-Mor declared bankruptcy due to fraudulent financial reporting and misappropriation of assets‚ making it one of the largest frauds in U.S. history. Below‚ we will use auditing standard AU 316.85 Appendix A in conjunction with the video “How to Steal $500 million” to analyze how incentives/pressures
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What role did the accounting profession play in the recent subprime mortgage crisis? What could they have done differently? An independent auditor has a duty is to: identify‚ measure‚ and communicate financial information about an entity for decision making purposes. They are also responsible for generating the financial statements/reports for an organization. (Marshall‚ McManus‚ Viele‚ 2008) The subprime mortgage crisis is the result of contract laws allowing lenders the securitization of subprime
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When I was working at the ABC‚ I was one of the few auditors to be promoted to Lead Auditor and trainer after a mere 18 months of employment. There were many reasons for this promotion including my strong auditing knowledge and my honesty and integrity. However‚ the main reason why I was chosen to the lead the team was because I could bring out the best in people. I believed in my co-workers‚ but I was also cognizant of their faults. As Lead Auditor‚ I trained five audit trainees and I led groups
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Surfer Dudes Duds Case During the Surfer Dudes case the going concern assumption and opinion an auditor might issue at the end of an audit are a focal point. It is brought up in relation to the audit of the Surfer dudes company. Whether or not to issue a going concern opinion is a tough decision and can have a serious effect on a company. Taking into account the relationship between the audit partner and CEO in this case the issue becomes even touchier. Going concern is an assumption that a
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