company. 3 a) What other parties‚ if any‚ should be notified in addition to the bank? Two other parties that should be notified in addition to the bank are the companies’ board of directors and the firm’s external auditors. By contacting the board of directors and external auditors the
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leading to the independence enhancement of auditors (IFAC‚ 2009) [online]. The principle-based ethical code is significantly encourages that EAs to exert ethics and independence in their thinking and behaviors‚ and it is optional to be performed because they are close with sensitive‚ private and confidential documents (IFAC‚ 2009) [online]. It increases the credibility‚ accountability and stewardship of directors by requiring internal and‚ or external auditors (EAs) to ensure that the principles are
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Worldwide Express‚ United Parcel Services (UPS)‚ Nationwide Express‚ Citylink‚ Bax Global‚ Nippon Express‚ Cargo Malaysia Services and Bangor Berhad. FCB had appointed Kenchana& Associates as its external auditor. The Protagonist Mr Chuah Mun Soong is the main character in this case. He is an auditor for FCB. He needs to present the financial report of Flat Cargo Berhad to the audit committee of FCB in two weeks. However‚ there are several inconsistencies reported by his subordinates in the accounts
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Strategic Audit Name Institution PART A: Advantages of a Strategic Audit A strategic audit measures the quantitative and qualitative aspects of the performance of a firm based on its past performance. This information will be important to the management in regard to the making of strategic business decisions (Victoria‚ 2010). Strategic auditing has many advantages. First‚ strategic auditing fosters quality decisions resulting from a conceptual understanding of
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delaying recognition of membership cancelations. (b) To further address the risk of management override of internal controls auditors must remain skeptical that management override exists. Auditors should also become familiar with the company and it’s internal controls upon acceptance. [5] (a) A company may want to hire a member of its external audit team because the auditor is familiar with the company‚ or management has developed a strong
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MEMORANDUM Date : November 10‚ 2010 To : Alchemy Corp. (Aren’t we addressing this memo to our parent co.‚ Alchem Corp.?) From : External Audit Team Subject: Internal Control Weakness and related fraud risk After much research and time spent on understanding the inner working of Alchemy Inc.‚ we have found some internal control weaknesses that could lead to potential fraud. Our audit procedures are designed to address internal control weaknesses and subsequent fraud risks
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firms in selecting the best clients and increased exposures of litigation have driven auditors to be more prudent in the process of making decisions when accepting a new audit client. (James‚ 2012). Therefore‚ the procedures and factors of considering new prospective clients must be done thoroughly in compliance of the Auditing Standards and the Code of Professional Conduct. 2.0 Purpose of External Auditing External auditing is essential to provide verification that the annual accounts by the firm
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questioned the legitimacy of SPEs’ business transactions and do something to avoid this. Q4. When the auditor performs internal audit services and external audit services and then provides management consulting services for the same client‚ self-review threats arise. Because the auditor does work for a client and that work may then be subject to checking during the subsequent audit. Auditors could obviously be reluctant to criticize the work that they have done to the same company previously‚ and
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SELECTED ECONOMIC ISSUES No. 10 2005 State Audit: An Instrument for Accountability and Good Economic Governance Page 2 Copyright © CEPA 2005 Centre For Policy Analysis No. 11 Amilcar Cabral Road Airport Residential Area Accra Mailing Address: P. O. Box 19010 Accra – North Ghana Tel: [233-21] 778035/779364-5 Fax: [233-21] 773670 ISSN: 0855-7144 ISBN: 9988-8007-9-7 The Centre for Policy Analysis is an independent‚ non-governmental think-tank‚ which provides rigorous analysis and
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relationship with the external auditors. The audit partner has ask you to visit the client and explain to the directors the more fundamental aspects of the accountability of the company and their relationship with the auditor. Required Through a memorandum‚ explain to the directors (a ) Why is the need for an audit. (5 marks) (b ) how the auditor of a public company may be appointed under the companies Act (5 marks) ( c ) What are the rights and powers of an auditor under the Companies
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