To: ACCY 303 Class‚ AE5 From: Man Fun Daniel Yeung‚ Seung Kim‚ Young Jae Lee‚ Max Kirsch Date: Oct. 18‚ 2010 Re: Financial Reporting Problems at Molex‚ Inc. INTRODUCTION This report discusses Molex‚ Inc.’s conflicts with its auditor‚ Deloitte and Touche‚ over a reporting issue in 2004. The report explains the details of the firm’s issue while also addressing the intentions behind Molex’s decisions‚ Deloitte’s concerns‚ and the resolutions for the conflict. MOLEX’S PROBLEMS
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http://media.pearsoncmg.com/pcp/pls/course_connect/business/accounting_1/lesson_08/default.htm Vorhies‚ James Brady (2005) Journal of Accounting‚ The new importance of materiality: CPAs can use this familiar concept to identify key control exceptions. Accessed November 29‚ 2010 http://www.allbusiness.com/accounting-reporting/auditing/435687-1.html
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Project is to make the United States generally accepted auditing standards (GAAS) easier to read‚ understand‚ and apply. As the Accounting Standard Board (ASB) redrafted the standards for clarity‚ it also joined the standards with International Standards on Auditing (ISAs)‚ which is issued by the International Auditing and Assurance Standards Board (IAASB). The ASB’s plan for the Clarity Project is to completely revise and recodify all existing auditing (AU) sections of AICPA Professional Standards. The
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measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements? Would it be feasible for auditors to conceal this information from their audit clients? Auditors should take explicit measures to prevent client from discovering the materiality thresholds used on individual audit engagements. If unethical management or employee of client finds out the materiality thresholds‚ they will understand auditors’ intention and get chances
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Practice Exam – 10 Points ACC/490 Auditing Student Name: Multiple Choice – Highlight the best answer Point Value: .25 each 1. Which one of the following is among the three components of audit risk? a. incurrence risk b. occurrence risk c. rejection risk d. control risk 2. The Hochfelder Case is important because it limited auditor liability under: a. the 1933 Securities Act. b. the 1934 Securities Exchange Act. c. common law. d. RICO. 3. Which of the following
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Standards Based Decision Making Team C June 24‚ 2012 ETH 376 Professor Standards Based Decision Making Green and Associates is the CPA firm retained by the ABC Corporation to handle their external auditing duties. The auditing team at Green and Associates took time to review aspects of ABC’s finances and had some questions regarding their client’s monthly statements that made them a little uneasy. Items such as their inventory valuation methods not to mention‚ Green’s new
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committees meet their oversight and fiduciary responsibilities.” – Trent Gazzaway‚ National Managing Partner of Audit Services Contents 2 Role of the external auditor 3 Audit planning 4 Financial statement assertions 6 Designing audits 7 Judging materiality 9 Assessing audit risk 10 Evaluating risk of material misstatement 11 Overseeing plan and team 12 Performing audit tests 13 Using the work of others The audit committee guide series has been adapted from The Audit Committee Handbook‚ Fifth Edition
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A NEW LOOK AT MATERIALITY What are the latest views on materiality in financial accounting? How have standards for measuring materiality changed since passage of the Sarbanes-Oxley Act? And what new approaches are being taken to better assess the materiality of financial information? In the aftermath of the Enron scandal‚ corporate financial statements are under greater scrutiny than ever‚ forcing auditors to pay closer attention to many transactions previously considered immaterial
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Advanced Auditing (7370) Exam 1 Review (Spring 2014) Multiple Choice‚ True/False (50 MC and T/F Questions) and Short Essay (8 Questions) There are 50 multiple choice and true/false questions worth 2.2 points each (110 points in total) and 8 short essay questions worth fifteen points each (120 points in total). This provides for a total potential maximum score of 230 points. The exam grade will be based on 200 points (200 points = 100%) – so there are 15% potential bonus points. The below
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Summary of SA http://wirc-icai.org/wirc_referencer/Acconting & Auditing/Summary of S... SUMMARY OF STANDARDS OF AUDITING (SA) APPLICABLE FOR THE FINANCIAL YEAR 2011-12 STANDARDS ON QUALITY CONTROL (SQCS) SQC 1: Quality control for firms that perform audits and reviews of historical financial information‚ and other assurance and related services engagements Objective of SQC–1 is to provide the firm with reasonable assurance that its personnel comply with applicable professional standards as
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