Ireland. Core business specialized in retailing & franchising‚ in areas of electrical‚ computer‚ furniture‚ entertainment‚ bedding goods. In this part of assignment‚ we aimed to find out some non-quantitative factors that might leads to potential misstatement‚ which eventually overstated or understated specific accounts that shown in profit and loss or balance sheet. 1. Disappointed sales figure in Ireland and north Ireland The economy condition in Ireland & north Ireland had stepping into recession
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Chapter 11 Fraud Auditing Review Questions 11-1 Fraudulent financial reporting is an intentional misstatement or omission of amounts or disclosures with the intent to deceive users. Two examples of fraudulent financial reporting are accelerating the timing of recording sales revenue to increased reported sales and earnings‚ and recording expenses as fixed assets to increase earnings. 11-2 Misappropriation of assets is fraud that involves theft of an entity’s assets. Two examples are an accounts
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The Prefab Sprout Company is a construction company which develops and constructs modular home enclosures in South Florida. Though being listed on the New York Stock Exchange (NYSE)‚ it is still a family-run business with about 40% of the shares resting with the Warner family. This working paper provides a thorough analysis of Prefab’s internal structure and its external business relations from an auditor’s viewpoint. In particular‚ the potential business and audit risks that could possibly evolve
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(Deloitte) What is Fraud? The Public Company Accounting Oversight Board (PCAOB) defines fraud as “an intentional act that results in a material misstatement in financial statements that are the subject of an audit. Two types of misstatements relevant to the auditor’s consideration of fraud include: misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets.” There are additional types of fraud that should also be considered when designing and implementing
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Case 3.1 Enron: Understanding the Client’s Business and Industry Price‚ Ria; Walters‚ Jessica 1. Inherent risk‚ a component of the audit risk model‚ refers to the susceptibility of the accounts to material misstatement‚ without regard to the systems internal controls. Inherent risk is a function of the nature of the client’s business‚ the major types of transactions‚ and the effectiveness and integrity of its managers and accountants. A clear understanding of the audit client’s business model is essential in assessing
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there are a few identifiable risks within Queen Island Dairy. Inherent risk is the susceptibility of an assertion to a misstatement that could be material‚ either individually or when aggregated with other misstatements‚ assuming there are no related controls. Control risk is the risk that a client’s system of internal controls will not prevent or detect a material misstatement. Upon a preliminary assessment it appears that the manufacturing process of Queen Island Dairy is upheld to an extremely
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should always practice assurance to ensure that every auditor or CPA accountants that they hire or do business with are performing professionally and freely at the objective matters. 3. The auditor’s responses to the assessed risks of material misstatement‚ particularly fraud risks‚ should involve the application of professional skepticism in gathering and evaluating audit evidence. Therefore‚ Andersen’s final decision was not
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DEPARTMENT OF ACCOUNTANCY UNIVERSITY OF ILLINOIS MEMORANDUM TO: Emilio Velasquez FROM: Shiyun (Sharon) Lu DATE: February 8‚ 2015 SUBJECT: University bookstore textbook travails case Reasons for use of the retail method Retailers use the retail method to record the value of inventory because this method is easy to use and acceptable for financial reporting purpose under GAAP. Under retail method‚ inventory is recorded at a predetermined percentage of the original cost. Thus‚ ending balance of
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JAWABAN SOAL UTS AUDITING 1 2008-2009 SOAL 1 a. Jawab: Assurance Service : pelayanan atau jasa professional independen yang dapat meningkatkan kualitas informasi bagi para pembuat keputusan. Non Assurance Service : accounting and bookkeeping services‚ tax services‚ management consulting services Jasa Atestasi : salah satu jenis jasa assurance yang disediakan oleh kantor akuntan publik‚ dimana akuntan public (CPA) akan menerbitkan laporan tertulis yg isinya antara lain berupa suatu kesimpulan tentang
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contain words “Private Limited”at the end of its name. Cannot invite public to subscribe for shares or debentures. Statement in lieu of prospectus not required even for first issue. PUBLIC LTD Should contain word “Limited” at the end of its name. Can invite public to subscribe for shares or debentures. Statement in lieu of prospectus OR prospectus required. 6 DIFFERENCE BETWEEN PRIVATE AND PUBLIC COMPANY PRIVATE LTD
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