Pharmaceuticals Certainly‚ an auditor would be guided by the following auditing standards: 1. AS 8.03 Audit Risk In order to express an appropriate opinion for the financial statements‚ the auditor must plan and perform the audit free of material misstatement. In this case‚ Fazio and his subordinates evaluate the risk of Ligand and posed it as a “greater than normal” degree of engagement risk‚ because Ligand had problem on its sales returns. 2. AU 210.01-03 Training and Proficiency of the Independent
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a lot of sweat. In this quiz‚ I’ve only got 12 correct answers over 8 wrongfully answered items. In audit‚ risks may result in material misstatements; the management is responsible for keeping the financial statements free of material misstatements. The management needs to have an effective risk management and control system that prevents material misstatement. Just like in my studies‚ I am the only one who could management the risk attributed to my studies. I need to study well and face the changes
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assurance that the financial statements are correct and fair. (b) The two main categories of fraud that affect financial reporting include misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets. (c) Factors that auditor’s should consider when assessing the likelihood of material misstatements due to fraud include: whether or not the company has a reason to make something seem consistent (rationalization)‚ whether or not the company
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and ensuring that the company complies with the laws and regulations that apple to its activities. Lastly‚ management is responsible for adjusting the financial statements to correct materials misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial‚ both individually and in the aggregate‚ to the financial statements taken as a whole
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SUMMARY OF KEY POINTS OVERVIEW OF FINANCIAL STATEMENTS AUDIT * The audit enables the auditor to express an opinion whether financial statements are prepared‚ in all material respects‚ in accordance with and acceptable financial reporting framework. * Complete set of general purpose financial statements: * 1. balance sheets * 2. income statements * 3. statement of changes in equity * 4. cash flow statement * 5. summary of significant accounting policies and other
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November 28‚ 2007 Ethical Dilemma Ethics is often defined as a major branch of philosophy‚ the philosophical study of moral values and rules which encompasses the right conduct and good living. Simply phrased a set of moral principles or values is considered to be a broad definition of ethics. Ethics is more of a subjective distinction between what is good or bad; not what is legally right or wrong. People differ within their moral principles and values because of their different life experiences
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INITIAL PUBLIC OFFER & ANALYSIS (A study on RELIANCE POWER‚ GMR IPO’s) Under the Esteemed guidance of Lecturer of Business Management Project Report submitted in partial fulfillment for the award of Degree of DECLARATION I here by declare that the project work titled “A Report on Initial Public Offer” done by me as a project work‚ submitted as partial fulfillment for the award of degree MASTER OF BUSINESS
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procedures as suggested by Megan: Skipping audit steps can have very serious consequences. By not completing the audit steps‚ material misstatements may slip past the auditors. The auditors may then issue an inappropriate audit opinion‚ which can be very costly. Skipping audit steps can lead to inaccurate audit decisions. Material misstatements could go unnoticed by the firm and this also raises a serious ethical issue with serious possible consequences for the auditors involved and the
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Retail Method vs. FIFO or LIFO In the case‚ the University Store provided plenty of goods and services with various costs. They frequently have their costs‚ selling prices and discounted prices changed. This process would contain a large amount of work since the Store kept large number of books. Although the Store has planned to record data by establishing a new software system‚ they used the retail method easing and simplifying inventory tracking. Comparing the FIFO or the LIFO method‚ the retail
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Audit Sampling Using Statistical Methods Presented By: Abhishek Agrawal AUDIT SAMPLING • Application of an audit procedure to less than 100% of the items in a population – Account balance – Class of transactions • Examination “on a test basis” • Key: Sample is intended to be representative of the population. APIPA 2009 2 SAMPLING RISK • Possibility that the sample is NOT representative of the population • As a result‚ auditor will reach WRONG conclusion • Decision errors – Type
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