Auditor Responsibility The expectation is that an auditor should be held responsible for the quality of his/her work. This is because a major error or omission by the auditor can result in a false opinion. Auditors have a moral‚ professional and legal responsibility. In the Companies Act 2006‚ Section 507 prevents auditors knowingly or recklessly causing an audit report to include any matter that is “misleading‚ false or deceptive in a material way”. To be proved in cases of civil liability
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expanded into a fraud detection and financial accountability field. Now audits are performed to manage and confirm the correctness of a company ’s accounting procedures. Auditing evolved into a business necessity once it became evident that a standardized form of accountancy must exist to avoid fraud. Today it has developed into a standardized yet complex field that is regarded as an important procedure in the management of business finance. Financial audits are performed to ascertain the validity
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A Framework for Auditor Independence The ISB lays a foundation for future guidance. By Susan McGrath‚ Arthur Siegel‚ Thomas W. Dunfee‚ Alan S. Glazer and Henry R. Jaenicke January 2001 EXECUTIVE SUMMARY THE INDEPENDENCE STANDARDS BOARD issued an exposure draft for a conceptual framework for auditor independence containing the concepts and basic principles that will guide the board in its future standard setting. THE NEED FOR A FRAMEWORK AROSE FROM the jumble of confusing independence rules
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QUESTION 1 1. How do a proprietorship and corporation differ? If you worked for a CPA firm‚ which would you recommend to your client and why? Explain in your own words. The difference between proprietorship and corporation is that proprietorship is only owned by 1 person and corporation is owned by either 1 person or a group of people. It also differs from the liability because a proprietorship has unlimited liability and a corporation has limited liability. When a proprietorship is sued‚
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(2004-2008) Course Title: Managing Financial Resources Course: MSc. Finance Date: 11th January 2010. TABLE OF CONTENT Executive Summary This report shows the analysis of the financial performance of Centrica Plc‚ one of the top energy business providers in UK. Based on my analysis from this report I can conclusively state that: Centrica Plc has an upper hand in the energy and gas market than it s competitor; Scottish Power. Centrica Plc’s turnover was very high in
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accountants must do all of the following except: B. Understand the internal controls used in the processes that generated the information A.20 If a nonissuer wants an accountant to perform an examination of its internal controls‚ the accountant should follow: B. AICPA AT 501‚ “An examination of an entity’s internal control over financial reporting that is integrated with an audit of its financial statements.” A.21 A review service engagement involving unaudited financial statements involves B
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1002 FINANCIAL STATEMENT ANALYSIS ASSIGNMENT NAME:ANG KOK SENG I/C NUMBER:910420-10-5945 H/P NUMBER:+6012-7895400 STUDENT ID:201059 NAME OF LECTURER:MR. LOH YONG CHIANG SUBMISSION DATE:2nd OCTOBER 2011 SEPTEMBER 2011 SEMESTER ASSIGNMENT QUESTION: Compare Cash Flow statement and Balance sheet. Describe the accounting process in preparing a balance sheet. How are balance sheet and Accounting equation related and what is T account? Describe the steps in analyzing financial statement and explain
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TABLE OF CONTENTS Introduction…………………………………………………………………………….....1 1.1 Relationship between Holding/parent company- subsidiary………………………….2 2.1 Consolidated Financial Statement…………………………………………………….4 3.1 The concept of Goodwill……………………………………………………………...5 3.1.1 Computation of Goodwill…………………………………………………………...6 3.1.2 Computation of negative Goodwill………………………………………………...7 4.1 The recommendation of the IASB……………………………………………………8 5.1 IFRS 36 Impairment of Assets………………………………………………………..9 6.1 IFRS
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The Impossibility of Auditor Independence Intentional collusion of auditors and their clients is is not the major cause of Audit integrity. Most of the times‚ auditors find it difficult to become objective. In 1992‚ Phar-Mor‚ Inc. drugstore in the United States seeking a court protection from corruption failed a court case. The previous auditors‚ Coopers & Lybrand‚ Phar-Mor’s failed to state inventory inflation and manipulation of finanicial that lead to overstating of $985 million earnings
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2-45 (Audit Committees and Auditor Independence‚ LO 4‚ 5‚ 6) The audit committee is required to evaluate the independence of both the internal and external audit functions. Required a. What factors would you suggest an audit committee look at in evaluating the external auditor’s independence? b. How can the audit committee influence the independence of the internal audit function? c. The audit committee must pre-approve all nonaudit services pro- vided by the external auditor. Assume the
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