CASE STUDY 2 – Internal Control Brian D. Cox ACCT 504 1) In its annual report‚ the Company must report on internal controls over its financial reporting. Four key elements must be included in this report: * Statement of Responsibility by Company Management (the CEO and CFO) for establishing and maintaining an adequate internal control structure and procedures for financial reporting. * Statement identifying the framework used by management to evaluate the effectiveness of the Company
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Chapter 1: Auditing‚ Assurance‚ and Internal Control Auditing Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and establishing criteria and communicating the results to interested users. Internal Audits * Internal auditing: independent appraisal function established within an organization to examine and evaluate its activities as a service
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Disclosure Rules. 11 2.3.5 – 500s Conflicts of Analyst Interest. 12 2.3.6 – 600s Funding; 800‚ 900‚ 1100s Disciplining Transgressors. 13 2.4 SOX Section 404. 13 2.4.1 Overview of Section 404. 13 2.4.2 Internal Auditor Role in Section 404. 14 2.4.3 Definition of deficiencies in internal control system. 15 2.5 Market reactions after SOX. 16 3. IMPLEMENTATION OF THE RESEARCH 18 3.1 Selection of the study sample. 18 3.2 Research methodology. 21 3.2.1 Average variation analysis. 21 3.2.2 Gaussian
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Comparing the current year’s financial statements with those of the prior year. D. Ensuring that a representation letter signed by management is in the file. 2. An auditor has identified the controller’s review of the bank reconciliation as a control to test. In connection with this test‚ the auditor interviews the controller to understand the specific data reviewed on the reconciliation. In addition‚ the auditor verifies that the bank reconciliation is properly prepared by the accountant and
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References: Hunton‚ J. E.‚ Bryant‚ S. M.‚ & Bagranoff‚ N. A. (2004). Core concepts of information technology auditing. Hoboken‚ NJ: Wiley. Internal Controls (2014). Retrieved from https://f2.washington.edu/fm/fa/internal-controls
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Corporate Governance‚ Internal Control and the Role of Internal Auditors – A Survey of Chinese Managers Author details: Dr. Jane J. Zhang School of Accounting‚ Economics and Statistics Edinburgh Napier University Business School Craiglockhart Campus Edinburgh EH11 1DJ‚ UK Tel: 00-44-131-4554448 Fax: 00-44-131-4554460 Email: ja.zhang@napier.ac.uk -1- Corporate Governance‚ Internal Control and the Role of Internal Auditors – A Survey of Chinese Managers Abstract This study investigates
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“America’s most innovated company.”1 Just six months later‚ in December‚ Enron filed for bankruptcy. The failure shocked the public and angered investors. How could this have happened? Did no one see this coming? Where were the accountants? Where were the controls? Enron’s public troubles began on October 16th of 2001 when management released a third quarter earnings report with a “mysterious $1.2 billion dollar reduction.” The following month the company restated earnings for the previous five years and
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2013-14 Outline for Seminar 19 Learning objectives Describe the challenges in auditing estimates and identify steps to address those challenges Discuss the roles of internal auditors and the reasons entities outsource their internal audit functions Identify circumstances in which auditors may use the work of internal auditors‚ other auditors and experts‚ and factors that should be considered Explain special considerations in the audit of group financial statements Required readings
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evidence and reporting 67 5. Introduction to internal control 85 6. Revenue system 107 7. Purchases system 127 8. Employee costs 145 9. Internal audit 159 10. Documentation 169 11. Evidence and sampling 185 12. Management representations 209 13. Substantive procedures – key financial statement figures 221 14. Codes of professional ethics 251 15. Integrity‚ objectivity and independence 263 16. Confidentiality 287 Sample paper 299 © The Institute of Chartered Accountants
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transaction‚ almost certainly‚ in the future. Therefore the accrual accounting methods recognizes the transaction at the point in which it takes place rather than when the cash is received. Do Discretionary Accruals Help Distinguish between Internal Control Weaknesses and Fraud? Investigation of the effectiveness of
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