of internal auditing which is to assist management to maximizing the opportunities and to minimizing the threats to the organization. Internal auditing must maximize the assurance provided to the board‚ the audit committee and the management‚ and contribute to the continuous improvement strategies for the organization. So‚ how to maintain good internal auditing function within the organization? Outsourcing of internal audit function is one of the solutions. So‚ what is internal auditing? What is outsourcing
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CHAPTER 1 INTRODUCTION BACKGROUND There are a number of positive developments in the economy since the introduction of foreign currency (multi currency system)‚ which if sustained‚ will spearhead economic recovery in the short to medium term horizon. These developments included the introduction of the multi currency system and the liberalization of the exchange control‚ the formation of government of national unity (GNU) and the engagement with multilateral institutions and the donor community
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Managerial Auditing Journal Emerald Article: Agency Theory and the Internal Audit Michael B. Adams Article information: To cite this document: Michael B. Adams‚ (1994)‚"Agency Theory and the Internal Audit"‚ Managerial Auditing Journal‚ Vol. 9 Iss: 8 pp. 8 - 12 Permanent link to this document: http://dx.doi.org/10.1108/02686909410071133 Downloaded on: 27-05-2012 Citations: This document has been cited by 4 other documents To copy this document: permissions@emeraldinsight.com This document
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individual auditor‚ engagement‚ functional‚ and organizational levels. In order to achieve independence the CAE must be able to communicate directly with the board. Independence and objectivity are critical to the profession of internal auditing. Internal auditing is intended to add value and improve operations. It helps businesses achieve objectives by evaluating risk management‚ control‚ and governance processes. In order for the internal auditor to be able to add this value it is critical that
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CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1-1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities
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of audit activities. Third‚ the audit committee able to review with the external auditors their audit plan and evaluation of internal control simultaneously promotes fair reporting from the prospective of shareholders‚ creditors and employees (Auditing and Assurance Services in Malaysia‚ 3rd Edition 2007). (ii)Rotation of Audit Partner Sarbanes-Oxley Act of 2002‚ Section 203 stated audit partner must rotate every 5 years (www.sarbanes-oxley.com). We do not support as regular rotation increase
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Auditor’s Responsibilities in Fraud and Error Detection Auditing October 17‚ 2011 Auditor’s Responsibilities in Fraud and Error Detection In recent years‚ scandals such as Enron and WorldCom have not only brought up the question “Where were the auditors?‚” but have also brought to our nation’s attention that auditing of public companies must be done with more precision and must have guidelines on the proper way to account for different items. Fraud‚ illegal acts‚ and errors happen every day
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in the services they sold. As the market changed‚ which included the emergence of information technology and a boom in mergers and acquisitions Andersen began to see conflict between its auditing and consulting partners. Anderson and Company sold auditing and consulting services. Problems can arise as the auditing company themselves are required to pay an auditors’ fee which might challenge the auditors suggestions and recommendations in fear of losing the consulting business. The other problem arises
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Planning the external audit The audit committee guide series “Effective audit committees are critical to the quality of financial reporting and the proper conduct of business. This guide is one of a series that is meant to help audit committees meet their oversight and fiduciary responsibilities.” – Trent Gazzaway‚ National Managing Partner of Audit Services Contents 2 Role of the external auditor 3 Audit planning 4 Financial statement assertions 6 Designing audits 7 Judging materiality 9 Assessing
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following paper will discuss the hypothetical research case given to us in problem 3-46 of our auditing textbook. The case depicts us as an audit firm that‚ during the current year’s audit of our client International Bank of Commerce (IBC)‚ has discovered some problems with loans that IBC has issued. First‚ the standards of the AICPA Code of Professional Conduct‚ the ASB auditing standards‚ and the PCAOB auditing standards that apply to this will be identified and discussed. These standards will be used
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