member of its external audit team a company could gain insight into the auditor’s process and better devise methods of hiding fraud. b) Hiring a former auditor would greatly compromise and possibly impair the existing external auditor’s ability to remain independent. On top of having knowledge about the auditor’s practice‚ preexisting relationships could cause bias in the audit outcome. c) Sarbanes-Oxley Act 2002 limits the ability of corporations to hire employees of their external audit firms. Sox
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tools are now available‚ this paper asks: Do auditors use the available technological tools? What are the difficulties they find? Are there mediators to facilitate usability? Through a cross sectional case-based field study comparing four engagements in a major audit firm‚ this paper finds that the characteristics of the audit team determine the levels of technology adoption. However‚ quality integration between technology support teams and auditors may improve usability and consequently increase
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searchwww.iiste.org The Role‚ Compromise and Problems of the External Auditor in Corporate Governance* James O. Alabede Department of Accounting‚ Federal Polytechnic Bauchi‚ Nigeria‚ E mail: joalabede@yahoo.com Abstract This study reflects on the role‚ compromise and problems of the external auditor in the corporate governance with particular reference to the UK. The external auditor is an independent person or firm of auditors appointed by the shareholders to investigate the financial statements
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Statements 6 Qualities of an auditor: 7 Types of audit: 7 Statutory audits: 7 Private audits 7 Internal audits: 7 Required procedures: 8 Auditors report: 9 AUDITING OF EDUCATIONAL INSTITUTIONS 9 INTRODUCTION: 9 Background of auditing educational institutions: 9 Reasons and purposes of auditing school accounts: 10 Expectations of the schools’ accounts auditor: 12 Types of auditing 13 Internal auditing 14 External auditing: 15 Records and books of accounts for external auditing. 17 Audit report
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------------------------------------------------- Table of Content I. List of Table 1 II. List of Figures 1 III. List of Appendixes 3 IV. Abstract 4 V. Chapter 1 - Introduction 5 A. Corporate Governance 5 B. Problem Statement 6 C. Research Objectives 7 D. Research Questions 7 E. Significant of Study 7 VI. Chapter 2 – Literature Review 8 A. Board of Director 8 a. Board Size and Audit Fees 8 b. Board Meeting and Audit Fees 9 c. Role of Duality and Audit
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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‚ fierce industrial competition and ineffective regulations on audit‚ provided
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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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INTRODUCTION There has been considerable interest in recent years in the role of the audit committee as a key corporate governance mechanism. Corporate governance committees and regulators around the world have addressed the need for effective audit committees‚ with many requiring that listed companies must have a committee (European Union (EU) 8th Company Law Directive‚ 2006; Smith Report‚ 2003; United States (US) Congress‚ 2002). Recognising that the existence of a committee does not
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(i) Discuss the conclusions that you can draw from the above ratios about Airclean’s financial position. (10 marks) (ii) Identify potential audit risks to be investigated further in light of the ratios. (10 marks) QUESTION 2 (20 marks) You are the auditor of Nobiz Sdn Bhd.. You have made the following notes on the company’s customer billings and collections procedures‚ which is mainly attended by a
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1a) External auditors obviously know what to look for in an audit‚ it’s what they do for a living. Having your company’s external auditor work for your company instead can give insight as to what they look for when doing an audit and therefore make it easier for a company to commit fraud. 1b) A client hiring former auditors may or may not affect the independence of current external auditors. It may affect their independence if they would rather work for the client; they could think that if they
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