corporate governance To report to shareholders on the truth and fairness of financial statements 2 The external auditor and reliance on internal audit ISA 610 Considering the Work of Internal Audit governs the situation where external auditors are auditing that operates an internal audit function. Reasons why external auditor should use internal audit Much duplication of work may be eliminated – eg internal audit may already have detailed systems descriptions‚ flowcharts. Internal audit may have
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1. R&R is a public corporation that‚ as of December 31‚ 2009‚ is subject to a year-end integrated audit by its independent auditing firm‚ Young & Young. An excerpt of Young & Young’s audit opinion state: In our opinion‚ the consolidated financial statements present fairly‚ in all material respects‚ the financial position of R&R and its subsidiaries as of December 31‚ 2009‚ and the results of their operations and their cash flows for the fiscal year ended December 31‚ 2009 in conformity with U.S. GAAP
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THE ROLE OF AUDITORS IN FINANCIAL CRISIS Submitted by Syed Ijtaba Ali Bukhari In the Fulfillment for the Degree of B.Com Honors LAHORE SCHOOL OF ACCOUNTANCY & FINANCE THE UNIVERSITY OF LAHORE (2013) The University of Lahore ------------------------------------------------- Lahore School of Accountancy & Finance Supervisory Committee We the Supervisory Committee‚ certify that the contents and the form of thesis submitted by Syed Ijtaba Ali Bukhari have been found satisfactory and recommend
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3. There are several standards to comply with when considering the supervisory responsibilities of senior auditing professionals. According to GAAS‚ the first general standard of ten auditing standards is that the auditing practitioner should have adequate technical training and proficiency as an auditor. Therefore‚ in this case Marshall had the legal responsibility to provide essential trainings‚ including technical and ethical issues‚ to Rojas‚ regardless whether Rojas would violate the law to
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Auditing: A Journal of Practice & Theory Vol. 29‚ No. 1 May 2010 pp. 207–220 American Accounting Association DOI: 10.2308/aud.2010.29.1.207 The Effect of Alternative Types of Review on Auditors’ Procedures and Performance Elizabeth A. Payne‚ Robert J. Ramsay‚ and E. Michael Bamber SUMMARY: Audit workpaper review is a primary means of quality control in auditing firms. While prior research shows that anticipation of a review affects preparers’ judgments‚ there is little research on the
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Developing severe civil and criminal penalties for corporate wrongdoers Establishing new protections for corporate whistleblowers PCAOB established by SOX Registering public accounting firms that audit publicly traded companies Establishing or adopting auditing‚ quality control‚ ethics‚ independence‚ and other standards relating to audits of publicly traded companies Investigating registered public accounting firms and their employees‚ conducting disciplinary hearings‚ and imposing sanctions where justified
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References: AICPA (1983)‚ Audit Risk and Materiality in Conducting an Audit. Statement on Auditing Standards No AICPA (1996)‚ Statement on Auditing Standards No. 78: Consideration of Internal Control in a Financial Statement Audit: An Amendment to SAS-55‚ American Institute of Certified Ashbaugh-Skaife‚ H.‚ Collins‚ D.‚ Kinney‚ W. and LaFond‚ R. (2007)‚ “The effect of
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realization that the Internal Audit activity has the potential to provide hitherto unparalleled services to management in the conduct of their duties. This potential has been turned into a challenge and embodied in the new definition of Internal Auditing from the Institute of Internal Auditors (the IIA). Background of the Study The Government of the Republic of Ghana by the Internal Audit Agency A ct‚ 2003 (Act 658) established the Internal Audit Agency “as an apex oversight body to co-ordinate
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Auditing Lecture Notes- Chapter Two The CPA Profession 14e Vignette Discussion- CPA Firms – 4 Types (Table 2-1……..pg. 26) 1. Big Four 2. National 3. Regional 4. Large Local Major Activities of these firms * accounting and bookkeeping * taxes * consulting Six Organizational Structures p. 29 1. Proprietorship 2. General Partnership 3. General Corporation 4. Professional Corporation 5. Limited Liability Company 6. Limited Liability Partnership Typical
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reports.” iv) Jennings et al. (1993)‚ in their study on the use of audit decision aids to improve auditor adherence to a ‘standard’‚ are of the opinion that the audit expectations gap is the difference between what the public expects from the auditing profession and what the profession actually provides. Monroe and Woodliff (1993) defined audit expectation gap as “the difference in beliefs between auditors and public about the duties and responsibilities assumed by auditors and the messages conveyed
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