explain how an auditor goes about the process of auditing financial statements and presents the five basic stages that the auditor performed during the financial statement audit at Maryward Primary School in Kwekwe for the year ending 31 December 2012. In order to be in a position to fulfil auditing responsibility to report on the client’s annual financial statements‚ the auditor followed a series of procedures and activities as required by the auditing profession. The auditor applied the following
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1Chapter 26 Internal and Governmental Financial Auditing and Operational Auditing Review Questions 26-1 Internal auditors who perform financial auditing are responsible for evaluating whether their company’s internal controls are designed and operating effectively and whether the financial statements are fairly presented. This responsibility is essentially the same as the responsibility of external auditors who perform financial audits. The two types of auditors are also similar in that
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MEANING OF AUDITING The word ‘Audit’ is originated from the Latin word ’Audire’ which means ’to hear’. In the earlier days‚ whenever there is suspected fraud in a business organization‚ the owner of the business would appoint a person to check the accounts and hear the explanations given by the person responsible for keeping the account and funds. In those days‚ the audit is done to find out whether the payments and receipt are properly accounted or not. The objective of modern day accounting
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are departures from the standard wording‚ users are more likely to recognize and consider situations requiring a modification or qualification to the auditor’s report or opinion. 3-2 The unqualified audit report consists of: 1. Report title Auditing standards require that the report be titled and that the title includes the word independent. 2. Audit report address The report is usually addressed to the company‚ its stockholders‚ or the board of directors. 3. Introductory paragraph The introductory
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Definitions (2) 1. An examination and verification of a company’s financial and accounting records and supporting documents by a professional‚ such as a Certified Public Accountant. 2. An audit is an IRS examination of an individual or corporation’s tax return‚ to verify its accuracy. There are three types of audits: correspondence audits (the IRS mails a request for additional information)‚ office audits (an interview is conducted at a local IRS office)‚ and field audits (an interview is conducted
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Is the demand for auditing a regulatory artifact or market driven? Pre SEC era: There is evidence that before legislation on auditing existed there were still forms of auditing. In the medieval times there were the guilds‚ later audits were conducted by directors or shareholders of a company. In the 19th century US companies voluntarily contracted for audits. Current data on non-SEC companies In 1977‚ 80% of corporate audit clients of PwC are non-SEC-registrants (Biegler 1977). Privately owned
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Memo To: John Doe From: Team C Date: February 20‚ 2012 Subject: Auditing‚ share-based payment and SPE reporting A publically traded company offers challenges to auditing when it comes to shared-based payment reporting and special-purpose entities (SPE) reporting individually. The most basic principle of GAAP at risk is the qualitative characteristic of reliability. Shared-based payment and SPE reporting individually has been broken down to better equip the audit for our client. It is important
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as part of their work in both the commercial and public sectors. They should also be of benefit to organisations considering establishing an internal audit function. Internal auditors should read these guidelines in conjunction with the Approved Auditing Standards contained in the Members’ Handbook and the Institute’s By-Laws (On Professional Ethics‚ Conduct and Practice) [Issued January 2007] and any requirements regarding internal audit set out in the relevant statutes or regulations. These guidelines
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INTRODUCTION This report consists of 5 reflections related to auditing standards and each case was extracted from internet sources. The purpose of this report is to reflect and understand each case. REFLECTIONS First reflection is on China sky case for its non-compliances with SGX. Next is the case on corporate governance where new rules were proposed to improve risk management and risk control. Third will be the extracted information of executives’ compensation in
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Introduction Centro Properties Group (Centro) owns develops‚ manages‚ and leases retail properties in Australia and New Zealand‚ it oversees a portfolio of more than 100 properties leased to supermarkets‚ department stores‚ and other retailers (Hoover’s Inc 2013). Centro created largely by former chief executive Andrew Scott and once valued at almost $10 billion by the market‚ the share price collapsed in December 2007 when the company revealed that it was struggling to refinance$1.3 billion. Centro
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