low when management has published a company code of ethics and sends frequent communication newsletters about it. d. Incorrect Risk is low when the board of directors reviews and approves all investment transactions. 6.25 a. Incorrect An airtight control system of checks and supervision is not possible because of collusion and management override. b. Incorrect This is a positive step but not the best long‑run way to stop fraud. c. Incorrect Dedicated “hotline” telephones are a great idea‚ but you
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Audit Proposal Brenda Pina‚ Rachel Foster‚ Maria Kight‚ Christine Twiford‚ and Clorissa Willie ACC/542 July 14‚ 2014 Professor Thomas Cappels Audit Proposal There are many different types of audits including internal‚ external‚ and information technology. Companies should be familiar with the types of audits that may possibly be used on an Accounting Information System (AIS). Knowing the different types of audits and where they are used will help a company be ready for an audit and make
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the receipt of goods has been recorded. True False 8. Proper separation of duties involves the purchasing department as the recordkeeping function. True False 9. If internal controls over the expenditure cycle are weak‚ auditors will need to design substantive procedures to try to detect whether control failures have produced misleading financial statement account balances. True False 10. If the risk of material misstatement is assessed as high‚ it is likely that additional
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omitted a number of accounts that are material‚ in the aggregate. Which of the following actions should the CPA take immediately? Perform alternative procedures to verify account balances. An auditor might consider the procedures performed by the internal auditors because They are employees whose work may affect the nature‚ timing‚ and extent of audit procedures. For a reporting entity that has participated in related party transactions that are material‚ disclosure in the GAAP-based financial
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report with the annual financial statements furnished to its stockholders. It also is required to engage the auditors to provide an opinion on its internal control. Apart from legal requirements‚ however‚ a large listed corporation recognizes that it must maintain investor confidence in the reliability of its financial statements and internal control over financial reporting if it is to continue to be able to
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AUDITING CHAPTER-HEADS Chapter 1 : INTRODUCTION Chapter 2 : TYPES OF AUDIT Chapter 3 : INTERNAL CONTROL AND INTERNAL CHECK Chapter 4 : VOUCHING AND VERIFICATION Chapter 5 : AUDIT PLANNING AND DOCUMENTATION Chapter 6 : COMPANY AUDITOR Chapter 7 : COMPANY AUDIT Chapter 8 : TYPES OF REPORT UNIT 1 INTRODUCTION Q1. Define an ‘Audit’ and state the various objects of an audit. Or ‘Two main objects
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Accounting concepts……………………………………………………………………… Factors that influence the nature and structure of accounting system……………….. Management control system…………………………………………………………….. Types of business risk……………………………………………………………………. Internal risk………………………………………………………………………. External risk……………………………………………………………………… Cadbury code…………………………………………………………………………….. Control system and procedure ………………………………………………………….. Types of fraud……………………………………………………………………………. Detection and implication for the fraud…………………………………………………
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April 2 AFM 452 KCRM assesses controls and risks and design in the planning phase Plan * Key document from panning phase – KCRM * Validate with the client so that you are sure the client agrees with the risk assessment * If you’ve assessed a risk as “high inherent risk” and seen that design is okay but control effectiveness is not working‚ then you have a big issue but if you have “moderate inherent risk” and see that design is okay but control effectiveness not working‚ not
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the detection of the following accounting irregularities perpetrated by Crazy Eddie personnel: (a) the falsification of inventory count sheets‚ (b) the bogus debit memos for accounts payable‚ (c) the recording of transshipping transactions as retail sales‚ and (d) the inclusion of consigned merchandise in year-end inventory. 3. The retail consumer electronics industry was undergoing rapid and dramatic changes during 1980s. Discuss how changes in an audit client’s industry should affect audit planning
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monthly management reporting • Full responsibility for the monthly reporting package (both Lafarge and titan) • Writing a clear clarification for all variance analysis to the CFO and top management • Ensure that all Internal controls related to the closing have been done correctly 2. Management of Budget and Forecast process • Managing all the communication with the related departments for all the budgeting data needed • Controlling and full responsibility
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