days 2. a. Describe the implications of the resulting ratios for the auditor’s audit strategy for year 20x9. b. What specific audit objectives are likely to be misstated? c. How should the auditor respond in terms of potential audit tests? 14-28 (Controls over cash receipts processing at a church) You have been asked by the board of trustees of a local church to review its accounting procedures. As a part of this review‚ you have prepared the following comments relating to the collections made at
Premium Accounts receivable Balance sheet Inventory
Property‚ Plant‚ and Equipment: Depreciation and Depletion True / False Questions 1. The auditors’ approach to the audit of property‚ plant‚ and equipment largely results from the fact that relatively few transactions occur. True False 2. A major control procedure related to plant and equipment is a budget for depreciation. True False 3. Evidence of continued ownership of property is obtained by vouching payments to a mortgage trustee. True False 4. The auditors typically observe all major items
Premium Internal control Depreciation Expense
Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
Premium Accounts receivable General ledger Inventory
auditing‚ review‚ other assurance‚ quality control and related services standards‚ such as International Standards on Auditing (ISAs). • Global Acceptance & Convergence – promote the acceptance and adoption of IAASB pronouncements throughout the world and support a strong and solid international accountancy profession by coordinating with IFAC member bodies‚ regional organisations and national standard setters. • Communication – encourage debate and present papers on a variety of audit and assurance issues
Premium Auditing Audit Financial audit
In accounting and auditing‚internal control is defined as a process effected by an organization’s structure‚ work and authority flows‚ people and management information systems‚ designed to help the organization accomplish specific goals or objectives.[1] It is a means by which an organization’s resources are directed‚ monitored‚ and measured. It plays an important role in preventing and detecting fraud and protecting the organization’s resources‚ both physical (e.g.‚ machinery and property) and
Premium
.‚r1.. - ! ’ ’i INTEGRATIVE CASE SEATTLE PAPER PRODUCTS Seattle Paper Products (SPP) is modifying its sales department payroll sysiem to change the way it calculates sales commissions. Under the old system‚ commissions were a fixed percentage of dollar sales. The new system is considerably more complex‚ with commission rates yarying according to the product sold and the total dollar volume of sales. Jason Scott was assigned to use audit software to write a parallel simulation test program to
Premium Auditing Internal control Audit
and criminal penalties for corporate wrongdoers Establishing new protections for corporate whistleblowers PCAOB established by SOX Registering public accounting firms that audit publicly traded companies Establishing or adopting auditing‚ quality control‚ ethics‚ independence‚ and other standards relating to audits of publicly traded companies Investigating registered public accounting firms and their employees‚ conducting disciplinary hearings‚ and imposing sanctions where justified Enforcing compliance
Premium Auditing Audit External auditor
Jeff Sacks-Wilner Term Paper What Management and Auditors can do to Help Prevent Fraud‚ Errors and Illegal Acts Fraudulent‚ erroneous‚ and illegal acts committed by a public company‚ usually at a managerial or executive level‚ have been a very serious problem for many years and have prompted development of strict and updated regulations‚ such as the Sarbanes-Oxley Act‚ in an attempt to prevent these occurrences. Unfortunately‚ these new or updated regulations are not enough to prevent these
Premium Auditing Financial audit Internal control
Justification for an Internal Control System Cynthia Kinney ACC544/Internal Control Systems June 27‚ 2011 Gary Godfrey Justification for an Internal Control System An internal control system is described as a way to control an organization better‚ minimize risk‚ reduce loss‚ and achieve goals. Two approaches‚ political and insurance‚ are used to justify the need for this type of system. Issues such as security valuation‚ asset allocation‚ optimization‚ and performance are considered with
Premium Risk Investment Insurance
EXAM 1 1.Deutsch & Thayer‚ CPAs’ communications on significant deficiencies in internal control. Failure to safeguard inventory from loss‚ damage‚ and misappropriation is a significant deficiency in the design or operation of internal control that could adversely affect the fairness of the financial statements. 2. Management representation letter. Management’s discussion regarding the temporary nature of a decline in the value of equity securities provides information regarding recognition
Premium Auditing Auditor's report Audit