The Auditors’ Objectives in Audit of Inventories and Cost of Goods Sold are to: 1. Consider internal control over inventories and cost of goods sold. 2. Determine the existences of inventories and the occurrence of transactions affecting cost of goods sold. 3. Establish the completeness of inventories. 4. Establish that the client has rights to the recorded inventories. 5. Establish the clerical accuracy of records and supporting schedules for inventories and cost of goods sold
Premium Inventory Cost accounting Cost of goods sold
with the goal of highlighting organizational problems and recommending solutions. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. Internal auditors are employed by companies to do both financial and operational auditing. Their role in auditing has increased dramatically in the past two decades‚ primarily because of the increased size and complexity of many corporations. Because internal auditors spend all of their time with one company‚
Premium Auditing Internal audit Audit
Risk-based Audit Approach Risk-based audit is an approach that is related to the concepts of audit risks and materiality. Audit risk is the likelihood that the financial statements are materially misstated after the auditor has determined that the financial statements are free of material misstatements. Materiality is a concept relating to the significance of an amount‚ transaction‚ or discrepancy. In this approach‚ auditors analyze audit risks‚ sets materiality based on the analyzed audit risks‚
Premium Risk management Auditing Risk
ZZZ Best Company Inc. ZZZ Best Company‚ Inc. is good example for being explored by accounting students regarding audit field. In this case‚ ZZZ Best Company‚ Inc.‚ which is established by Barry Minkow‚ became a tool for its owner i. E. Barry Minkow to get money by lying to thrid parties via fictitious insurance restoration project. Difficulties in developing carpet cleaning industry made Barry Minkow think to get money in wrong way. Collaborate with Tom Padgett and also extensive social
Premium Audit Barry Minkow Financial audit
influence (if any) over the audit of Smackey Dog Foods‚ Inc. Smackey Dog Foods‚ Inc. is not a publicly traded company‚ but the SEC has a direct influence on their audit. Keller CPA’s will need to follow the generally accepted auditing standards put forth by the SEC. Keller CPAs need to remain independent of the client and stay free of conflicts of interest when performing their audit responsibilities. Q2. Discuss the essential activities involved in the initial planning of an audit. How do these all specifically
Premium Financial audit Audit Auditing
THE ROLE OF AUDITORS IN FINANCIAL CRISIS Submitted by Syed Ijtaba Ali Bukhari In the Fulfillment for the Degree of B.Com Honors LAHORE SCHOOL OF ACCOUNTANCY & FINANCE THE UNIVERSITY OF LAHORE (2013) The University of Lahore ------------------------------------------------- Lahore School of Accountancy & Finance Supervisory Committee We the Supervisory Committee‚ certify that the contents and the form of thesis submitted by Syed Ijtaba Ali Bukhari have been found satisfactory and recommend
Premium Auditing Audit Auditor's report
auditing can be challenging and requires highest level of professional proficiency. Therefore internal audit staff must have professional abilities to carry out the audit functions. Our internal audit department is committed to assist each staff members to meet that responsibilities. Slide #2 Speaker’s notes Independence is the foundation of internal audit‚ the internal audit activity must be free from interference in determining the scope of internal auditing ‚ performing work and
Premium Auditing Internal audit Financial audit
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
Premium Auditing Audit Generally Accepted Accounting Principles
Non-Audit Services and Knowledge Spillovers: An Investigation of the Audit Report Lag Angela Walker and David Hay1 University of Auckland Acknowledgements: We gratefully acknowledge helpful comments by Robert Knechel‚ Yi-Hsing Liao‚ and participants at the International Symposium on Audit Research in Maastricht and the Australian National Centre for Audit and Assurance Research workshop at Australian National University. This research was supported by a grant from the University of Auckland under
Premium Audit Auditor's report Auditing
Question 2 (Messier 3-18 International Edition) Sandy Pitts is auditing Hofmeister Hardware Company‚ a fast-growing retail hardware chain. While Pitts has previously worked on this engagement‚ this is her first year as the audit manager. As she planned the engagement‚ Pitts identified a number of risk factors (such as strong interest in maintaining the company’s earnings and stock price‚ unrealistic forecasts‚ and high dependence on debt financing for expansion) that indicated that fraud might
Premium Auditing Financial audit Audit