the GAAS. Additionally‚ the Clarity Project seeks to progressively establish the convergence of the United States auditing standards with international standards of auditing (ISAs). While undertaking its role of overseeing the auditors of public companies‚ the PCAOB‚ considers IAASB standards in the development of its own audit standards proposals. PCAOB has adopted eight auditing standards that relate to the auditor’s assessment of and response to potential risks in the audit process. The eight
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of the PCAOB On May 24‚ 2007‚ the Public Company Accounting Oversight Board voted to approve Auditing Standard No. 5 (AS5)‚ titled “An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.” The newly approved AS5‚ drafted in organization with the Securities and Exchange Commission‚ replaces the PCAOB’s previous internal control standard‚ Auditing Standard No. 2. The PCAOB has stated that AS5 has four main goals: (1) to focus the internal control
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assignment requires brief explanations. Save the fluff for another time. Auditing Insight p. 91-Things add up at HealthSoouth EY’s audit plan for HealthSouth included a materiality level of $5‚000 for all expenses. 1. Briefly explain why this was or was not appropriate‚ assuming there was no fraud? 2. What audit procedure(s) could have detected the fraud? 3. Why is fraud always material‚ no matter the amount? Auditing Insight p. 97-Interviewing. Some audit procedures require interviewing client
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AUO1 Additional Study Questions What is the difference between transaction processing systems‚ management information systems‚ and decision support systems? Transaction processing systems - document financial activities Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations Decision support systems - help the developers of an AIS identify what information they need for their planning‚ decision making‚ and control
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ClariCall ClariCall is a leader in the telecom industry. They have survived the pitfalls of a seemingly sloth industry. Due to their survival skills‚ questions of how they survived have become an instant issue. Audit and investigation staffs are required to verify that the correct amount of revenue is declared or quantified. In doing this‚ it may be necessary to test the information provided and the assertions made by or on behalf of ClariCall. Therefore‚ the Revenue Verification Process will play
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Financial accountants and independent auditors commonly face challenges Abstract Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO‚ who was a CPA‚ took extreme measures to conceal the fraud from his company’s audit
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replaces actual values with fake ones‚ but the result is still the same type of data‚ which can then be used to test program logic.) 1. Which of the following is a characteristic of auditing? a. Auditing is a systematic‚ step-by-step process. (Incorrect. While this is true‚ it is not the only correct answer.) b. Auditing involves the collection and review of evidence. (Incorrect. While this is true‚ it is not the only correct
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ACCT401 – Section 101 Group Project – Appendix 6C March 25‚ 2013 Rachel Barrows Mike Fields Maria Gomozova Sviatlana Lizun Patricia Vaz Megan Wark Very good! 100% +2 cb 6C-1 Summary of Audit Sections Section Purpose Content 1 Objectives of the Engagement To describe the services that are to be rendered to the client (KCN). The objectives include: an audit of KCN’s financial statements for the year ended 12/31/20X5 and
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audit is an approach that is related to the concepts of audit risks and materiality. Audit risk is the likelihood that the financial statements are materially misstated after the auditor has determined that the financial statements are free of material misstatements. Materiality is a concept relating to the significance of an amount‚ transaction‚ or discrepancy. In this approach‚ auditors analyze audit risks‚ sets materiality based on the analyzed audit risks‚ and then develop audit procedures which
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The CICA’s Guide to New CASs in Canada August 31‚ 2009 About the CICA The Canadian Institute of Chartered Accountants (CICA) conducts research into current business issues and supports the setting of accounting‚ auditing and assurance standards for business‚ not-for-profit organizations and government. It issues guidance on control‚ best practices and governance‚ publishes professional literature‚ develops continuing education programs and represents the CA profession nationally and internationally
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