Case You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process. This process has not been audited for three years and‚ as such‚ is due in the normal audit cycle. There have been no significant changes since the previous audit‚ that is‚ there were no system changes‚ no reorganization of personnel‚ and no substantive procedural changes. However‚ during the last assurance engagement‚ the internal audit function identified several observations
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usually employees and occur when they gain access to cash or cash disbursement accounts and can manipulate them. Misstatement arising from fraudulent financial reporting- the perpetrators generally doesn’t seek personal gain‚ but want to make the company look better or avoid bankruptcy. They accomplish this by falsely altering account records‚ omission of events or transactions‚ and intentional misuse of accounting principles. 26. Three common ways that fraudulent financial reporting can take
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statement at the appropriate amounts Accuracy: -transactions have been appropriately recorded in the proper accounts Presentation and disclosure: -particular components of the financial statements are properly classified‚ described and disclosed 1. Non-current assets are not valued greater than recoverable amount in accordance with an applicable accounting standard. • Account balance • Valuation and allocation • Assets‚ liabilities‚ and equity interests exist are including in the financial
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Assignment 1: Bottling Company Case Study In this project we were given the case of customer complaints that the bottles of the brand of soda produced in our company contained less than the advertised sixteen ounces of product. Our boss wants us to solve the problem at hand and has asked me to investigate. I have asked my employees to pull Thirty (30) bottles off the line at random from all the shifts at the bottling
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Auditing Introduction Letter Mahshid Kianipour Instructors: Cecil B. Lucy November 15‚2010 University of Phoenix Auditing Introduction Letter From: Langroodi‚ CPA To : Management of Apollo Shoes‚ Inc. RE: Auditing and assurance services Dear Mr. Jason‚ First‚ I would like to appreciate to giving me this opportunity to explain a couple points related to our firm and services‚ so then I’ll try to make them understandable and short as much as I can; because I know how valuable
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Case Study 1: Lew-Mark Baking Company The Company The Lew-Mark Baking Company is located in a small town in western New York State.The bakery is run by two brothers. Lew and Mark‚ who formed the company after theypurchased an Archway Cookie franchise. With exclusive rights in New York and New Jersey‚it is the largest Archway franchise. The company employs fewer than 200 people‚ mainly bluecollar workers‚ and the atmosphere is informal. The Product The company’s only product is soft cookies
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The Auditing Process INTRODUCTION Auditing is defined by the American Accounting Association or AAA as “a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users” (cited in Turney et al p. 108). From that definition‚ it is evident that the auditing process consists of three elements: evidence
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Final Exam Review Practice Case IPI Case: Required: 1. Identify Accounting System Issues System implementation Lack of training I: people try to override the system‚ inaccurate reporting R: The company who installed the system needs to be contacted and hold training session for employees Glitches I: inaccurate reporting‚ create room for error R: Contact the company again and get them back and give them responsibility to fix the glitches 2. Identify Control Issues: Understaffing
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same across all accounts or account groups. The auditor chooses what overall level of audit risk they are willing to accept. A higher level of audit risk means that the auditor is willing to accept more audit failures. 1% audit risk means that you are willing to accept that 1 out of 100 issued audit opinions will be incorrect. 5% audit risk means that you are willing to accept that 5 out of 100 issued audit opinions will be incorrect. So‚ the higher the audit risk you are willing to accept‚
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VORA AND COMPANY* Understand the Concept of Marketing Mix In December 1963‚ M.C. Vora‚ proprietor of Vora and Company manufacturers of Blossom Quick-Cooking Oats located at Lucknow‚ sought counsel from the Small Industries Service Institute at Lucknow regarding steps that might be taken to increase the sales of his company. The company had been organized in 1959‚ had started to sell its product nationally in 1961‚ but by December 1963 had failed to attain a profitable volume of sales. Mr
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