common in Livent was their ability to take costs for one show and moving some of it to another show for the future or in the past that had been more successful. Auditing for live theatrical performances is a little different than a typical audit. The auditors have to look at so many different costs‚ investments‚ revenue from multiple shows and periods‚ and much more. A possible strategy is auditing the company without much communication between the auditing client and the CEO or other top officers of
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the Accounting Practice Board (APB) has issued 5 ethical standards which any auditor has to follow in order to give a true and fair view of all the reports. The International Federation of Accountants’ (IFAC)‚ has an independent standard setting body known as the International Ethics Standards Board for Accountants (IESBA) that works in the interest of the general public by setting high-quality standards for all the auditors and accountants of accountants who are professional and they also facilitate
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satisfied that all income received were recorded. However‚ you have been satisfied that the company has correctly accounted for all income recorded. 2. Telken Ltd is the parent entity of the Telken Group‚ a reporting entity. Your firm did not act as auditor of either Telfast Ltd or Teldane Ltd – the entities controlled by Telken. You were unable to obtain the auditor’s report for Telfast‚ although you do have a copy of the final draft auditor’s report‚ and the other auditor’s verbal assurance that an
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ACCA ARTICLE ISA 260‚ Communication of Audit Matters With Those Charged With Governance‚-April 2015 When considering the reporting ‘outputs’ of an audit of historical financial information‚ attention is usually focused on the report issued by the auditors to shareholders‚ which contains the audit opinion. However‚ there is another important reporting ‘output’ produced as a result of the audit process – the auditor’s communication to those charged with governance. This short article outlines the main
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Standards of Reporting. Under the General Standards section of GAAS there is a specific standard for independence and it reads‚ “The auditor must maintain independence in mental attitude in all matters relating to the audit.” (Messier‚ 42) Often times a distinction will be made between independence in fact and independence in appearance. What this means is that an auditor must not only be independent in fact (objectively)‚ but must also avoid actions that may appear to affect independence. The fact
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obtained by the auditor in previous audits of the entity can be updated and carried forward to the current year’s audit. B- Inquiries of management‚ supervisory‚ and staff personnel within the entity: - For example‚ the auditor may inquire about the types of accounting documents used to process sales transactions and about the entities control activities that have been placed in operation for authorizing a credit sale. C- Observation of client activities and procedures: - The auditor can observe
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transactions do not affect the existence and valuation assertions relevant to auditing. The right and obligations assertions‚ on the other hand‚ may be impacted as physical counts of inventory and their accuracy and completeness come into question. The auditor should be wary of procedures related to physical counts of inventory. Extra care to mitigate intentional or misintentional inclusion of inventory in the physical count should be countered by the auditing team. Additionally‚ the audit should further
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NATURE OF OPERATIONAL AUDIT • Also known as management audits and performance audits. • Conducted to evaluate the effectiveness and/or efficiency of operations. • Examinations of all or part of an entity to determine the degree of its operational efficiency‚ effectiveness and economy. • Also refers to the auditor’s study of business operations for the purpose of making recommendations about economic and efficient use of resource‚ effective achievement of business objectives
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detect management fraud? An auditor should conduct an audit in accordance with GAAS and design procedures to provide reasonable assurance that material frauds that might misstate the financial statement are detected. C What are some characteristics of management fraud that an audit team should consider to fulfill the responsibilities under auditing standards? Auditors are concerned about the management fraud that affects the financial statement. In other words‚ auditors are responsible to detect
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Technologies in 1989 completed by Gilmore Bennington and Peter Zalenti of W&P had many egregious errors. Three major issues in this case will be stated and analyzed firstly. * W&P auditors’ failure to obtain competent evidence to develop a reasonable opinion. * The lack of mental independence by the auditors‚ especially W&P partner Bennington. This was evident in Bennington’s lack to challenge the Meteor’s CFO on issues presented by the auditing team. * Throughout the audit process
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