detailed examination of the complete accounting records but it does not involve the preparation of accounts. 2. If the auditor is asked to write the books of accounts‚ extract an agreed trial balance and profit and loss account and Balance sheet‚ he would be doing the work of an accountant and not the work of an auditor. Preparation of account is not the part of auditing. An auditor‚
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You didn’t ask for the answer‚ but the source below shows the major auditing standard that would be broken if the auditing fee is based on the profit of the company. It has to do with the independence of the auditor. Basing the auditing fee on profit could affect the impartiality of the auditor or at least give the appearance of bias. Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial
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Chapter 17 Auditors’ Reports True / False Questions 1. Audit reports should be dated the date on which the financial statements are issued. True False 2. When the auditors are unable to comply with generally accepted auditing standards‚ they should issue an opinion that is unqualified‚ but include an additional explanatory paragraph in the report. True False 3. When evaluating the results of audit tests‚ materiality depends upon both the dollar amount and the nature
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Professional Level – Options Module Advanced Audit and Assurance (International) Tuesday 8 June 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A – BOTH questions are compulsory and MUST be attempted Section B – TWO questions ONLY to be attempted Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet
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nothing wrong. Fear is common when the auditors are being brought in because most people don ’t know what to expect. This is also true when audits are being done for businesses. I know from personal experience that the auditors are not always greeter with kindness. I currently working in an accounting firm and have had the privilege to go on audits with my company even though I do not yet have my degree. People need to understand that the auditors do not need to be fear but need to be respected
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professional relationship‚ it should be noted also that consultants do have ethical requirements being followed in the conduct if work. Moreover‚ a consultant cannot be deterred from performing its professional duty to disclose this information to the external auditors who have the greater responsibility to take charge of this matter. In short‚ those questionable management practices are not to be held confidential but are to be given notice on the responsible authority. * CASE 2 The president having a
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1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given financial statements? Defend your answer. The auditors should not insist that their clients accept all proposed audit adjustments. The auditor’s main duty is to provide reasonable assurance to verify the accuracy and compliance of client’s financial statements‚ to ensure that it conveys data and information of events occurred within the accounting period
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Table of Contents Introduction 2 Ease of Use 2 Security 4 Control and Compliance with Financial Reporting 5 Usefulness of Information produced 6 Conclusion 7 Appendix A: Reference 8 EXCEL VS. SAGE LINE 50 Introduction Ease of Use Other than sales‚ purchases and expenses being keyed in for Sage has more systematic approach than Excel as it has a flow for the user to trail. Another advantage of Sage would be the handling of stock which stock inflow and outflow could be track with the system
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The PCAOB and the Social Responsibility of the Independent Auditor By Douglas R. Carmichael‚ Chief Auditor It is a distinct pleasure to speak to this group that uniquely blends a passionate interest in auditing standards‚ practice‚ and education. I have the honor of being the first Chief Auditor of the Public Company Accounting Oversight Board – the primary advisor to the Board on policy and technical issues related to the auditing of public companies‚ including auditing standards‚ and
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Billy’s Beat Inc When considering whether or not to accept a new audit client‚ the successor audit should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining the acceptance of the engagement. Matters subject to inquiry include: information that might bear on the integrity of management‚ disagreements with management as to accounting procedures‚ or other similar significant matters‚ and communications to audit committees
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