the SOX Act‚ Corporate Managers (CEOs‚ CFOs) are required to: 1) issue Internal Control Report beginning with the 2004 company annual report; 2) certify quarterly to the effectiveness of internal controls over financial reporting; 3) issue two opinions on internal controls on the annual report a) management’s assessment process and b) effectiveness of controls. Moreover‚ Section 404 mandated company reporting on internal control by management and independent auditors. What is the reasoning behind the
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*risk can not be eliminated because not all of evidence being examine. Inherent Risk is a measure of the auditor’s assessment of the likelihood that there are material misstatements in account balance before considering the effectiveness of internal control. If the auditor concludes that there is a high likelihood of material misstatement in A/R due to changing of economic conditions‚ the auditor concludes that inherent risk for A/R is high. Planning an Audit and Designing an Audit Approach I. Accept
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Audit Planning: Assessment of Control Risk MULTIPLE CHOICE: 1. Which of the following is ordinarily considered a test of internal control procedures? a. Send confirmation letters to banks. b. Count and list cash on hand. c. Examine signatures on checks. d. Obtain or prepare reconciliations of bank accounts as of the balance sheet date. ANSWER: C 2
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Evaluation of Internal Control The stages/activities involve in studying and evaluating internal control are: A. Obtaining an understanding of the entity’s internal control structure. B. Assessing the preliminary level of control risk. C. Obtaining evidential matter to support the assessed level of control risk. D. Evaluating the results of evidential matter. E. Determining the necessary level of detection risk. STAGE A. Obtaining an understanding of the entity’s internal control structure.
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CGAP Certified Government Auditing Professional ® ® CCsA Certification in Control Self-Assessment CfsA ® Certified Financial Services Auditor CERTIFICATION CANDIDATE HANDBOOK www.theiia.org/Certification www.theiia.org/Certification i IMPORTANT NOTE: The information in this handbook describes the application‚ registration‚ and certification processes for those IIA certification candidates who register through IIA Global Headquarters. It is not applicable to candidates
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Internal Controls in Accounting for publicly traded companies. Regulations and Guidelines for the President‚ CEO‚ and CFO. 10/05/2012 By: Accounting 504 Table of Contents I. Introduction II. Rules‚ Regulations‚ and Guidelines III. Advice to LBJ Company IV. Conclusion This document is intended to serve as an informational piece regarding steps and procedures that would need to be followed for the purposes of bringing a privately held company into regulations
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INTERNAL CONTROLS AND INVENTORY MANAGEMENT CASE STUDY OF ROOFINGS LIMITED BY NABAYINDA MARY 08/U/23669/EXT SUPERVISOR Mr. NZIBONERA ERIC A RESEARCH REPORT SUBMITTED TO COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF COMMERCE OF MAKERERE UNIVERSITY AUGUST‚ 2012 DECLARATION I‚ Nabayinda Mary‚ declare that this report is entirely out of my own effort and has not been presented anywhere for any
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13-26 a. b. c. d. e. f. 1. Acquisition and Payment Acquisition and Payment Reperformance Substantive S T of T Posting and summarization N/A 2.Acquisition and Payment Documentation Test of control or Substantive S T of T Existence N/A 3.Inventory and Warehousing Analytical procedure Substantive A P N/A Realizable value 4.Capital Acquisition and Repayment Confirmation Substantive T D of B N/A Existence Accuracy Presentation and disclosure 5. Acquisition and Payment Reperformance Substantive T D of
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United States. AOW has also reviewed Management’s Report on Internal Control Over Financial Reporting and have concluded that Apollo Shoes‚ Inc. has effective controls in place for financial reporting. The criteria for internal controls has been established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). “The COSO internal components include the following: 1) Control Environment‚ 2) Risk Assessment‚ 3) Control Activities‚ 4) Information and Communication 5) Monitoring”
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Virginia. In the Goodner case‚ internal auditors were conducting their annual inventory counts of Goodner Brothers‚ Inc. and determined that their numbers were lower than the book inventory numbers by $143‚000. As it would with any company‚ the misstatement of inventory raised red flags forcing the company to contact their independent audit firm to investigate the inventory shortage. The investigation concluded that the company did not have adequate internal controls and that many issues involving
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