Assurance services - deal with audit or review of historical financial information and assurances dealing with subject matters other than historical financial information. * designed to enhance the degree of confindence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria FF. are the broad categories of services under the umbrella of assurance services: 1. Risk assessment 2. Information system reliability
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The Audit Risks Assessment Model and Potential Areas of Improvement By: Patrick S. Fields Fraud and the Creation of Sarbanes-Oxley Following the multitude of fraud scandals in the early 2000’s‚ such as Enron and WorldCom‚ many accounting firms found themselves as part of a thorough investigation to determine what exactly caused the sudden outburst of accounting fraud. As investors and creditors pursued their lost money from the these business failures‚ accounting firms began to garner attention
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Donna Sanders Financial Statement Fraud Week 12 There are many things that can motivate financial statement fraud. Taking a look at Donald Cressey’s hypotheses which is now known as the fraud triangle depicts the certain criteria for the mind frame of the fraudster. The fraud triangle is a theory that consists of perceived pressures‚ perceived opportunity‚ and rationalization. It gives us the different pressures placed on individuals that would make them consider “cooking the books.” It also
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Chapter 24 Completing the Audit Review Questions There are four presentation and disclosure-related audit objectives: 24-1 PRESENTATION AND DISCLOSURE-RELATED AUDIT OBJECTIVES Occurrence and rights and obligations Completeness Accuracy and valuation Classification and understandability DESCRIPTION Account-related information as described in the footnotes exists and represents the rights and obligations of the company. All required disclosures are included in the financial statement
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performing the annual goodwill impairment testing‚ most companies engage valuation specialists to conduct the analysis. The auditors also rely on the help of the valuation specialist to evaluate the underlying data and assumptions. In this cases a misstatement arising primarily from recent market declines‚ the engagement partner has determined that goodwill for the US reporting unit is a material account balance as of December 31‚ 20X3 because it is quantitatively significant ($280 million) and qualitatively
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Assurance Hand Note Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM) Assurance CA in Bangladesh www.facebook.com/cainbd 1 Assurance Hand Note Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM) CONTENTS OF ASSURANCE 01. 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 Preliminary of Assurance: Assurance Engagement: Key elements of an assurance engagement: Levels of assurance Objective of an Audit: True & Fair
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revenues exist‚ are complete‚ and are accurate. Procedures To test the reasonableness of sleeping room revenues‚ B&J: 1. Identified the key factors‚ key relationships and other considerations that drive sleeping room revenues 2. Determined tolerable misstatement based on assessment of inherent and internal control risks 3. Set and corroborated expectations 4. Compared client actual amounts to expectations and evaluated results 5. Assessed the need for additional tests of details Results & Conclusion 1
Free Limited liability partnership Corporation Types of business entity
1: Does the error represent a material misstatement? According to GAAP‚ information is material "If its omission or misstatement could influence the economic decision of users taken on the basis of the financial statements." Based on this definition and the following ratios‚ we believe Molex did in fact misstate the Balance Sheet and Income Statements for the period ending in June of 2004. In September‚ prior to making these errors public information‚ Molex released its yearly financials
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Chapter 5: Internal Control over Financial Reporting 1. Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting‚ compliance with laws and regulations and ineffective and inefficient operations. FALSE 2. Auditing standards require that the auditor exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. TRUE 3. If internal controls are not enforced they are useless
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The London Whale Scandal BU486-B : Accounting Information Systems and Computer Audit & Controls Kevin G. Bullock Wilfrid Laurier University Alexander Brik - 110882860 Aman Smagh – 110257570 Jack Welton – 100791540 Zaid Iqbal – 110184970 Synopsis of the Case In April and May of 2012‚ JP Morgan Chase & Co. incurred major trading losses of $6 billion dollars. However‚ JPMorgan’s financial statements represented these losses as only $2 billion. The losses were the result of
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