standards. Under Sabrnes-Oxley Act‚ executives must certify the internal control of their organization. Internal Control is an inherent part of this act as it requires strict guidelines of standards to be met (The
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MR. MEGAT ABDULLAH MEGAT MAHMUD Table of Contents Different roles of internal and external auditors. 4 Internal auditors: 4 External auditors: 4 Identify the benefits in forming an audit committee. 6 Evaluate the strengths and weaknesses of MPL’s control environment: 7 Control Environment: 7 a. Integrity and Ethical Values: 7 b. Participation of Board of Directors or Audit Committee: 7 c. Management Philosophies
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deficiency in internal control‚ significant deficiency and material weakness. * Deficiency in internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees‚ in the normal course of performing their assigned functions‚ to prevent‚ or detect and correct‚ misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing‚ or (b) an existing control is not properly
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1. List what you believe should have been the three to five key internal control objectives of Goodner’s Huntington sales office. The Goodner’s Huntington sales office should have implemented the following internal control objectives: 1. The reliability of financial reporting‚ which relates to the timely and accurate recording of transaction‚ and it makes sure that financial reports are reliable and free of material misstatement. In addition‚ it also deals with the physical security
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AIS – Final Study Chapter Highlights Chapter 1 – ACCOUNTING SYSTEM INSIGHTS 1. Enterprise system – A system that supports business activities throughout the enterprise‚ including inputs‚ processing‚ and outputs 2. Integrated enterprise system – Shares data across functional areas within the enterprise 3. Business processes – Related activities performed by an enterprise to create value by transforming input into output 4. Value chain – An organizing framework for business processes
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Chapter 10 Assessing Control Risk / Tests of Controls |Learning Check | 10-1. a. Assessing control risk is the process of evaluating the effectiveness of an entity’s internal controls in preventing or detecting material misstatements in the financial statements. b. Control risk should be assessed in terms of individual financial statement assertions. 10-2. In assessing control risk for an assertion‚ the auditor should perform the following five steps:
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demonstrated the inadequacy of internal controls with regard to revenue recognition. The act also contains requirements aimed at ensuring proper revenue recognition (SEC‚ 2013). Under this section‚ there must be a statement of management’s responsibility for establishing and maintaining internal control for any financial report of the company. Furthermore‚ they must list out the frameworks on how they used to determine the effectiveness of the internal control. In addition‚ they must write
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1.1 Case Background This case is about the Small medium enterprises‚ Excel Poultry & Meat Sdn Bhd (EPM) that face management‚ production‚ financial and internal control problems. Besides that‚ In this case also show conflict of interest between General Manager of EPM‚ En Selamat with the main debtors. The lack of internal control causes bad financial performance since 2008. Other than that‚ this case also shows the external factors for the production process that cause “chicken run” crisis
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Ch. 8: Comprehensive Questions: Analytical procedures ( 8-15 and 8-16) Ch. 10: Comprehensive Questions: Components of internal control (10-31 and 10-32) Ch. 11: Comprehensive Questions: Assessing control risk (11-21) 8-15 | (Analytical procedures) In audit planning the audit of Construction Industry Resources‚ Inc.‚ a building supply company. You have completed analytic procedures relevant to purchases and inventory. The results of these procedures are included in Figure 8
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Hicks 3 April 2013 To: LJB Company President From: Samara Ellison‚ Accounting Firm Subject: Evaluation of LJB Company’s Internal Control Structures Date: 3 April 2013 Hello LJB Company President: First‚ I would like to thank you for hiring my accounting firm to evaluate LJB’s internal controls system. This report will inform you of any new internal control requirements required for LJB to go public‚ advise you of what the company is doing right‚ recommend that LJB purchase an indelible
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