SARBANES-OXLEY ACT ACC 403- AUDITING PROFESSOR August 19‚ 2012 The Sarbanes-Oxley Act was placed into effect July 2002; the act introduced major changes to the regulation of corporate governance and financial practice. The Sarbanes-Oxley Act was named after Senator Paul Sarbanes and Representative Michael Oxley‚ who were the main architects that set a number of non-negotiable deadlines for compliance. The organization for Economic Cooperation and Development was one of the first non- government
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47) 1) Inherent risk in this situation is not zero because he states that he has never seen an accounting adjustment recommended which could mean that there has been something that happened that was immaterial that it didn’t need to be adjusted. If the inherent risk was zero there wouldn’t been the chance that anything could go wrong and to give it a zero risk there is no point then to audit the firm. 2) In chapter three they mention that control risk should not be assessed so low that the audit
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because it relates to a false or misleading statement in documents filed with the A: SEC 7) Within generally accepted auditing standards‚ general standards relate primarily to a. the fairness of the financial statements b. qualifications of the auditor and the quality of the auditor’s work c. qualifications of the auditor d. the relationship between generally accepted auditing standards and accounting principles 7) Statements on
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reports have been furnished to us‚ and our opinion‚ insofar as it relates to data included for Oceanview Marine Company‚ Dec 2007‚ is based solely on the report of the other auditor-Talbert and Johnson‚ PC. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining
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Stages of Study and Evaluation of Internal Control The stages/activities involve in studying and evaluating internal control are: A. Obtaining an understanding of the entity’s internal control structure. B. Assessing the preliminary level of control risk. C. Obtaining evidential matter to support the assessed level of control risk. D. Evaluating the results of evidential matter. E. Determining the necessary level of detection risk. STAGE A. Obtaining an understanding of the entity’s internal
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Table of Contents I. Introduction II. The purpose of internal auditing III. Profession guidance on independence and objectivity IV. Consulting services: a challenge to audit independence? V. Independence vs. Objectivity VI. Conclusion VII. 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
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Final Exam Review Practice Case IPI Case: Required: 1. Identify Accounting System Issues System implementation Lack of training I: people try to override the system‚ inaccurate reporting R: The company who installed the system needs to be contacted and hold training session for employees Glitches I: inaccurate reporting‚ create room for error R: Contact the company again and get them back and give them responsibility to fix the glitches 2. Identify Control Issues: Understaffing
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Generally Accepted Auditing Standards ACC/491 Contemporary Auditing 1 March 27‚ 2014 Richard A Cochran Generally Accepted Auditing Standards Generally Accepted Auditing Standards‚ also known as GAAS‚ are the most acknowledged auditing standards known. GAAS relates to the conduct of individual audit engagements and are a set of standards in which quality of audits are performed and may be judged. The American Institute of Certified Public Accountants (AICPA) has a division
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CHAPTER 15 Completing the Audit LEARNING OBJECTIVES 1 2 3 4 5 6 7 8 Describe the balance sheet account groups that the major revenue and expense accounts are associated with‚ and the substantive analytical procedures applied to audit revenues and expenses. Outline the overall analytical procedures to be performed at the final stage of the audit‚ including analysis of the income statement‚ the cash flow statement‚ financial statement presentation and disclosures
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Case 11.1: The Runners Shop Relevant Guidance • AU 339 (SAS 103): Audit Documentation • Auditing Standard No. 3: Audit Documentation • International Standard on Auditing 230’ (Revised) (Site -http://irba.co.za/documents/doc_00535.pdf ) Questions 1] Describe the purposes of audit documentation and explain why each purpose is important. According to AU 339.03‚ “audit documentation provides the principal support for the”: (a) “representation in the auditor’s report
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