AUDIT EXPECTATIONS GAP Definition i) Liggio (1974a) defines it as the difference between the levels of expected performance as envisioned by the independent accountant and by the user of financial statements. The Cohen Commission (1978) on auditors’ responsibility extended this definition by considering whether a gap may exist between what the public expects or needs and what auditors can and should reasonably expect to accomplish. ii) According to Guy and Sullivan (1988)‚ there is a
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Study of the essay "Power and Weakness" by Robert Kagan Robert Kagan‚ American neoconservative scholar and political commentator created an international sensation in 2002 with his essay "Power and Weakness‚" that he later expanded into a bestselling book entitled Of Paradise and Power. His essay announced that "Americans are from Mars and Europeans are from Venus." Here is a summary of his essay and the different steps of his analysis of the deteriorating US-Europe relationship According
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Tammy Adams March 28‚ 2011 MAR Professor C. Dix Strategic Audit of Crowley Maritime Corporation Crowley Maritime Corporation is a U.S. owned and operated marine solutions‚ transportation and logistics company providing services in domestic and global markets through six operating lines of business: Latin America liner services; logistics; marine contract solutions; deep sea petroleum transportation; Puerto Rico/Caribbean liner services and petroleum transportation‚ distribution
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CHAPTER 17 COMPLETING THE AUDIT ENGAGEMENT Answers to Review Questions 17-1 A contingent liability is defined as an existing condition‚ situation‚ or set of circumstances involving uncertainty as to possible loss to an entity that ultimately will be resolved when some future event occurs or fails to occur. FASB ASC Topic 450‚ “Contingencies‚” classifies uncertainties into three categories: 1. Probable: The future event is likely to occur. 2. Reasonably possible: The chance of the future
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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 of internal audit function? How could outsourcing of internal audit function help the role of internal auditing? All these questions
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Core competence (strengths and weakness) Introduction In order to anticipate changes in business‚ management should build an appropriate strategic plan. Focusing on a company’s core competencies establishes a unique integrated system that competitors cannot replicate. By the definition as Prahalad and Hamel (1990) stated‚ core competency is a collective knowledge about how to combine company’s diverse resources‚ technologies and know-how. As the foundation of competitive advantages for enterprise
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Conclusion Based on the explanation above‚ we can make a conclusion. The Tai Yau Tour Travel Limited may concern about their strength and weakness in the objection. The strength includes that their service is offered in Mainland and the contract and profits can be regarded as antecedent activity. According to the Agency Principle‚ Agents’ activities are equivalent to the company’s. But weaknesses are showing as they advertised in Hong Kong‚ the contract was made in Hong Kong and Profit was arising
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What is a Strategic Audit? A strategic audit provides managers with the tools‚ information and commitment to evaluate the degree of advantage and focus provided by their current strategies. It produces the data needed to determine whether a change in strategy is necessary and exactly what changes should be made. The two major elements of a strategic audit are the external and internal environmental assessments. A strategic audit involves assessing the actual direction of a business and comparing
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Administration - MBA Semester 3 Subject Code – MF0013 Subject Name – Internal Audit and Control -4 Credits (Book ID: B1211) Assignment Set- 1 (60 Marks) Q.1 Critically evaluate the qualities of an Auditor in the wake of recent scams Ans:- What should be the qualities of Internal Audit Personnel? There is no universal answer to this question. We can only generalize about the qualities of internal Audit Personnel. It has been observed that internal auditors and independent auditors often
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Audit committee member toolkit June 2009 Table of contents Audit committee charter Example audit committee charter ..............................................................................................................................1 Audit committee report Example report of the audit committee ....................................................................................................................11 Financial expertise Audit committee financial expert questionnaire
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