Should auditors be held more accountable in uncovering financial fraud? Table of Contents Introduction Currently in the United States‚ the American Institute of Certified Public Accountants (AICPA) the International Auditing and Assurance Board (IAASB) are the most influential accounting standard boards able to influence fraud detection standard setting in financial reporting. In recent years‚ there has been a growing trend in financial scandals such as WorldCom‚ Enron and Madoff
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Anderson‚ Olds‚ and Watershed Certified Public Accountants Littleton‚ CO 80123 Audit Committee Apollo Shoes‚ Inc 100 Shoe Plaza Shoetown‚ ME 00001 Anderson‚ Olds‚ and Watershed (AOW) has completed the audit of the financial statements for the year ended December 31‚ 2007 for Apollo Shoes‚ Inc. The financial statements include the balance sheet‚ the income statement‚ the statement of retained earnings‚ and the statement of cash flows. The audit has been performed in accordance with generally
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intentional act involving the use of deception that results in a material misstatement of the financial statements. The two types of misstatements that are relevant to auditors are: The misstatement arising from misappropriation- this occurs when someone steals or misuses an organizations assets. Perpetrators are usually employees and occur when they gain access to cash or cash disbursement accounts and can manipulate them. Misstatement arising from fraudulent financial reporting- the perpetrators generally
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in the Red Herring Prospectus to be submitted to RoC‚ at least 3 days prior to the bid opening date‚ as per Clause No. 11.3.1(vii)(a) of SEBI (DIP) Guidelines‚ 2000. Recommendation The company may be allowed to disclose the floor price‚ just prior to the bid opening date‚ instead of in the Red herring Prospectus. This may be done by any means like a public advertisement in newspapers etc. Rationale As per provisions of section 60B (2) of Companies Act‚ 1956 Red Herring prospectus is to be filed with
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Annotated Bibliography Fulton‚ Betsy‚ Amy Stichman‚ Lawrence Travis‚ and Edward Latessa. "Moderating Probation and Parole Officer Attitudes to Achieve Desired Outcomes." Prison Journal 77.3 (1997): 295-313. CECybrary. ProQuest Database. Allentown Business School‚ Center Valley‚ PA. 7 July 2004 . This study was an assessment of the role preferences of probation and parole officers and the conflict between control and treatment. It was determined that organizational philosophy is a determinate on
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“Appointment of the Independent Auditor‚” AU Section 311‚ “Planning and Supervision‚” AU Section 312‚ “Audit Risk and Materiality in Conducting an Audit‚” AU Section 314‚ “Understand the Entity and Its Environment and Assessing the Risks of Material Misstatements” and AU Section 316‚ “Consideration of Fraud in a Financial Statement Audit.” QUESTIONS AND SUGGESTED SOLUTION A useful approach for understanding a client’s business environment and [1] associated business risks is to perform a PESTLE analysis
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risks. The planned detection risk is a factor of inherent risk‚ control risk‚ and acceptable audit risk. Planned detection risk is the risk the auditor fails to detect misstatements and will increase or decrease dependent on the level of risk in the other three factors. If the auditor determines it is expected that misstatements is highly likely than inherent risk increases and create a higher demand for evidence. As the same with control risk‚ the weaker the internal controls the higher the planned
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and responding to assessed risks. The auditor should document the risk of material misstatement for all material accounts and classes of transactions in terms of the related assertions. The required documentation for identified risk factors includes the following: • The nature and results of the communication among engagement personnel that occurred in planning the audit regarding the risks of material misstatement due to
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ACG 4632 Introduction to Financial Statement Auditing Spring 2015 Section 422 Instructor: Devin Williams‚ CPA 1-1 Chapter 1 An Introduction to Assurance and Financial Statement Auditing Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LO# 1 The Study of Auditing The study of auditing is different from other accounting courses that you have taken in college because … OTHER COURSES Rules
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incremental changes for each line item over the last three years. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation‚ calculate the estimated effect of this misstatement on net income before taxes for 20X4. Indicate whether you belive that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement
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