identify the existence of audit committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector but there are small differences in the implementation between this two sector that has been discuss in this study. This study also discuss about the characteristic of audit committee‚ effectiveness of audit committee‚ the roles of audit committee and a few past studies
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Chapter 1: Uses of Accounting Information and the Financial Statements TRUE/FALSE 1. The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY: ethical reporting 2. Fraudulent financial reporting can result from the misapplication of accounting principles. ANS: T PTS: 1 OBJ: LO1 NAT: AACSB correlation: ethics LOC: Learning Type: Recall KEY:
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ethics‚ values and judgement 6 03 Raise awareness of non-financial risk 7 04 Manage self 8 05 Communicate effectively 10 08 Improve departmental performance 12 10 Prepare financial statements for external purposes 13 13 Contribute to budget planning and production 14 15 Evaluate potential business/investment opportunities and the required finance options 15 17 Prepare for and collect evidence for audit 16 19 Evaluate and compute taxes payable 17 answering
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Robinson have an impropriate relationship with Crabtree? Explain. 3. Identify the primary audit objectives for client’s year-end discretionary expense accruals. Is it permissible for companies to overstate period-ending expense accruals to make their financial statements more “conservative”? 4. Discuss the scope and nature of an auditor’s responsibilities during a review of client’s quarterly financial statements. Answers: 1. The American Institute of Certified Public Accountants
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to a publication by N. Chesworth; the purpose of an audit is to assess if the business is physically capable of producing a safe product which is consistently high in quality and safety. It is also used to check legal constraints are met to an acceptable level using effective control methods ensuring consistent performance. Another constructive way the audit is used is to ensure certain measures are present to support due diligence defence. Audits are usually carried out continuously to highlight
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Accounting Research Center‚ Booth School of Business‚ University of Chicago Why Do Audits Fail? Evidence from Lincoln Savings and Loan Author(s): Merle Erickson‚ Brian W. Mayhew‚ William L. Felix‚ Jr. Reviewed work(s): Source: Journal of Accounting Research‚ Vol. 38‚ No. 1 (Spring‚ 2000)‚ pp. 165-194 Published by: Blackwell Publishing on behalf of Accounting Research Center‚ Booth School of Business‚ University of Chicago Stable URL: http://www.jstor.org/stable/2672927 . Accessed: 30/01/2012
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Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning 1. Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit‚ if any. 2. Focus specifically on each of the five management assertions (existence or occurrence‚ completeness‚ valuation or allocation‚ rights and obligations‚ and presentation and disclosure) for the inventory account. Link any risks you identified for this account
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Internal Audit and the Relationship with Senior Management Summary: The case study “Internal Audit Reporting Relationships: Serving Two Masters” was a part of a series of research projects being developed by the Institute of Internal Auditors to determine the various relationships‚ specifically reporting relationships between the internal auditor and those charged with governance. To obtain research about the various types of reporting relationships‚ independence‚ conflicts that arise from
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Financial Statements for Internal Reporting Purposes vs. Financial Statements for External Reporting Purposes It is common in most companies to maintain two set of financial statements; one being used/presented for internal reporting purposes and another for reporting externally. Internal reports are used primarily to aid management in the decision making process throughout the course of the business. These are subject to internal audit to make sure that all information reported are fair and correct
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independence may impact adversely on an audit. In 2001‚ there was an event that had shaken the whole business world. The crash of Enron in US‚ followed by worldwide collapse of its auditor‚ Arthur Andersen. It was a greatest corporate failure uncovered in business history. Follow the Enron-Andersen scandal‚ massive organizations like WorldCom‚ Xerox and Waste Management confront a similar fate. The debate rested on the issue of audit independence ‚ that is found to be
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