1. An Audit differs from a review‚ particularly in terms of the level of assurance by an auditor. An Auditor’s report must obtain reasonable assurance about whether the financial statements as a whole‚ are free of material misstatement‚ whether it’s due to fraud or error. An Auditor expresses his opinion on whether the financial statements are prepared in accordance with an applicable financial reporting framework. As well as‚ to report on the financial statements and Auditors findings that relates
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Case Study – ZZZ Best‚ Inc. 1. Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for three months ended July 31‚ 1986. How does a review differ from an audit particularly in terms of the level of assurance implied by auditor’s report? A quarterly review report is issued by a CPA and reviewed by an auditor to provide assurance that the financial statements are fair and follow the GAAP standards. Quarterly
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illegal activity occurs. The first factor an auditor should consider is how the occurrence effects the financial statement and the penalty‚ if any‚ for the issue. The second factor to be considered is the integrity of the management staff and their reaction to the illegal occurrence. The last factor for an auditor to consider when an illegal occurrence happens is the internal controls over the financial reporting. “Smuggling” money into the US can result in fines. “Smuggling” from the Caribbean
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accordance with the statements on standards for accounting differ significantly with those of audit financial statements in compliance with the general accepted auditing standards. During a review the accountants will perform analytical procedures and will obtain their information from asking the management a variety of questions rather than obtaining an understanding of the internal control structures and obtaining evidential matter throughout inspection‚ observation or confirmation as an audit process requires
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Qualified Opinion In our opinion‚ except for the effects of the adjustments on the financial statements‚ if any‚ as mentioned in the preceeding paragraph‚ the financial statements have been properly drawn up in accordance with IFRS and the Companies Act‚ 1965 so as to give a true and fair view of the financial position of the Group and of the Company as at 30 June 2009 and of their financial performance and the cash flows for the financial year then ended. This is a qualified audit report.
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What ’s your favorite financial statement and why?" The question was spoken quickly and with a tinge of annoyance‚ as my interviewer eyed me disdainfully from his cushy black leather chair. The investment banker had little time to conduct these ridiculously long interviews that are standard fare for analyst candidates. I shifted uncomfortably in my seat and scanned my frazzled brain for the "right" answer. "Well‚ of course all three financial statements should be studied in conjunction
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not appropriate with authority? 2. Identify controversial issue(s)‚ 3. Support your arguments 4. Answer the question - State your opinion/ conclusion Case Study 5 The answer is adapted from HKICPA FE (December 2003) Paper II Case Question 4. There is an inconsistency in the auditor’s report. The Qualified Opinion paragraph indicates that the opinion is qualified on the basis of scope limitation‚ while the Basis for Qualified Opinion paragraph suggests that the uncertain results of Lam’s negotiations
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Valukas…………………………………………..……….…………………………3 4. The accounting fraud (Repo 105)…………………………………………………...……………………….3 5. The Auditor……………………………………………………………………………………………..……………..4 6. Ernst and Young role in Lehman Brothers´ case……………………………………………………….4 7. The “Netting Grid”……………………………………………………………………………….………………….5 8. Materiality issue…………………………………………………………………………….……………………….5 9. Fraud charges…………………………………………………………………………………………………….6 10. Conclusion…………………………………………………………………………………………………………6 Sources……………………………………………………………………………………………………………………7
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Audit Framework 2011/12 Coursework Student name: Hoai Phuong Le ID number: U0870879 Pathway: BA Accountancy – Final Year Word count: 2490 The purpose of a statutory audit is defined in law. Its function is to report to the shareholders‚ on whether the financial statements show a true and fair view‚ have been properly prepared in accordance with the Companies Act and the applicable financial reporting framework (Shah‚ 2009‚ pp72-73). It is believed
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Report on the Financial Statements We have audited the financial statements of ABC SDN. BHD.‚ which comprise the balance sheets as at 30 September 2010 of the Group and of the Company‚ and the income statements‚ statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended‚ and a summary of significant accounting policies and other explanatory notes‚ as set out on pages X to XX. Directors’ Responsibility for the Financial Statements The directors
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