Group Assignment – HBC614B Company Auditing PART 1 THE INTERNATIONAL AUDITING STANDARDS BOARD AND ITS IMPORTANCE TO THE DEVELOPMENT OF AUDITING STANDARDS IN AUSTRALIA AND NEW ZEALAND The International Auditing and Assurance Standards Board (IAASB) is an independent standard setting body within the International Federation of Accountants (IFAC). Established in 1978‚ originally known as International Auditing Practices Committee (IAPC)‚ it changed its name to IAASB in early 2001 and was then
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Case #3 The Lakeside Company: Auditing Cases Analysis of a Potential Audit Client · Benjamin Rogers is president of the Lakeside Company‚ a retailer/ distributer of consumer electronics. · Rogers is unsatisfied with King and Company’s CPAs‚ and has been in contact with Abernethy and Chapman. · Abernethy and Chapman has never had a client in this field and they look forward to breaking into a new market. · Lakeside has grown at a steady rate in the last decade
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The Lakeside Company: Analysis of a Potential Audit Client Benjamin M. Rogers is the president of the Lakeside Company‚ a retailer and distributor of consumer electronics (such as televisions) based in Richmond‚ Virginia. Although King and Company CPAs‚ a Richmond firm‚ had previously audited Lakeside‚ Rogers has recently become aware of the CPA firm of Abernethy and Chapman from reading several advertisements. His interest in the firm was heightened when he discovered that Abernethy and Chapman
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Exercise #2………………………………………………………………………………..8 Discussion Questions 1. The owners of Lakeside as well as the company’s bank may require that an independent CPA firm perform an annual audit because the CPA firm could have an independence issue. The CPA firm in that Lakeside wants to hire is also the auditors for Lakesides main financial bank. The bank is a “main” user of the report put out by Lakesides auditor and in this case would be that banks auditor too. The connection is too close for the
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February 7‚ 2013 Abernathy and Chapman Wallace Andrews Lakeside 1235 Sentry Drive Richmond‚ Virginia 66266 Dear Mr. Wallace‚ We have researched the issues that were discussed regarding the possibility of Lakeside Company going public and the ramifications this action would have on their desirability as a client. We have also analyzed Lakeside Company’s financial statements to evaluate the possibility of misstatements. Attached‚ you will find our report discussing these issues. Please
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ensures that the assets and records are safeguarded‚ but also creates an environment in which efficiency and effectiveness are encouraged and monitored. This report is mainly focused on internal audit and internal control system in a company. In this case‚ the company is Kejora Bhd.. This report also focused on two main questions to be answered which is regarding on the evaluation of the strengths and weaknesses of Kejora Bhd.’s control environment. Another question is regarding on the factors in
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Discussion Questions- Case 8 2) An over count of ending inventory would lead to a decrease in costs of goods sold which leads to an increase in net income. Anytime a company wants a higher net income there is the potential for over counting of inventory. This potential problem is especially significant in the audit of the Lakeside stores because manager’s of the each store get a bonus based on the store’s net income. They are also the same people who count the inventory. It would be very tempting
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1. Why would the owners of Lakeside‚ as well as the company’s banks‚ require that an annual audit may be made by an independent CPA firm? Auditing in general‚ is necessary because of the existence of Information risk or the risk of unreliable information. Owners of lakeside may own the company but they are not closely involved in managing the business with the exception of Rogers‚ the only owner involved actively in the business’ day to day operations. So‚ an independent audit for non-managing owners
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Auditing a Publicly Traded Company Share-based compensation are avenues used to give employees equity rights into a company. There are two types: stock options and restricted stock. The reasoning for employees to have share-based benefits‚ according to Basu (2014)‚ “is that if they all have a stake in the value of the company’s shares‚ they may try harder to drive sales‚ profits and other financial metrics that investors and research analysts look for in stocks” (para. 1). One of the main disadvantages
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Introductory Weekend for Students at BPTC Providers outside London Friday 5 – Saturday 6 October 2012 Registration Form Please use this form if you would like to register by post or in person. Alternatively you may register online using the online booking system‚ which is accessed via the Student Dining page of our website. Email diningoff@lincolnsinn.org.uk with your membership number and BPTC Provider to be issued a username and password. Booking will open on Wednesday 1 August 2012.
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