Risk-based Audit Approach Risk-based audit is an approach that is related to the concepts of audit risks and materiality. Audit risk is the likelihood that the financial statements are materially misstated after the auditor has determined that the financial statements are free of material misstatements. Materiality is a concept relating to the significance of an amount‚ transaction‚ or discrepancy. In this approach‚ auditors analyze audit risks‚ sets materiality based on the analyzed audit risks‚
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Using Computer-Assisted Audit Techniques to Support Audit I. Executive Summary Nowadays‚ the use of computers dominates in most of the business world; auditors too have recognized that the power and speed of computers can greatly assist them in their work. The term “computer-assisted audit techniques” (CAAT) is used to denote computer techniques that auditors can utilize to help them complete their audits in a more effective‚ efficient‚ and timely manner. Use of the prefix “computer-assisted”
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chapter 1 Fundamentals of Strategic Management 1 chapter 1 Fundamentals of Strategic Management W hat do Circuit City‚ Washington Mutual‚ Saab‚ Blockbuster‚ and Borders have in common? All of these recognized companies filed for bankruptcy during the past several years. While the situation surrounding each firm is different‚ all of them failed to meet various strategic challenges. Put another way‚ organizations typically do not succeed or fail randomly. Some plan‚ prepare‚ and
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Independence of outside audit firms has been an ongoing issue for a long time in the US corporate world. The fundamental problem arises for the lack of clarity about whom does the audit firm really works for‚ the shareholders or the client company. According to Anandarajan et all (2008)‚ this lack of clarity has resulted in auditor’s independence being impaired. In the US‚ the client hires‚ pays‚ and fires the auditor and therefore‚ the culture of the auditors serving at the pleasure of the client
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Plan and properly supervise audit. Apply appropriate materiality Assess risk of material misstatement Based on understanding of entity (client) Environment – inc. internal control Sufficient appropriate evidence to reach opinions Reporting – what we need to say Express opinion or indicate why we don’t express opinion Measure opinion in accordance with appropriate financial reporting framework GAAP or IFRS What is an Audit? 3943354572004 stages to an audit: Planning
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Internal audit and review reports |by Katharine Bagshaw | | |29 Jan 2003 | | |Internal auditors‚ external auditors‚ and consultants who perform internal audit and review engagements provide reports to management | |(internal audit reports)
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As part of our audit process‚ we will request from Tesla Motors‚ written confirmation concerning representations made to us in connection with the audit. We will issue a written report upon completion of our audit of Tesla Motor’s financial statements. Our report will be addressed to the board of directors of Tesla Motor’s. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement
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When analyzing the Pinnacle Manufacturing Financial Statements there multiple concerns that should be further investigated that I will explain in this memo. When identifying the year to year change and using financial ratios found on A6‚ there are a couple of concerns that need to be identified. The fact that the operating expense from fluctuated from an increase $892‚861 from 2009 to 2010 and then decreased by $956‚231 from 2010 to 2011 should be raised in question. At the same time Operating expenses
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Module 1 Case Test Discussion Case 2-39 a. There are three factors that should be considered when illegal activity occurs. The first factor an auditor should consider is how the occurrence effects the financial statement and the penalty‚ if any‚ for the issue. The second factor to be considered is the integrity of the management staff and their reaction to the illegal occurrence. The last factor for an auditor to consider when an illegal occurrence happens is the internal controls
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Fall 2011-2012 Final Exams Schedule Exam Period 08:00 -10:00 Monday Dec 19 2011 M-W-F 08:00 - 08:50 Classes M-W 08:00 - 09:15 Classes 11:00 - 13:00 M-W 11:00 - 12:15 Classes 14:00 -16:00 M-W-F 14:00 - 14:50 Classes M-W 14:00 - 15:15 Classes W 12:30 - 15:20 Classes 16:00 - 18:00 M-W 17:00 - 18:15 Classes Exam Day Tuesday Dec 20 2011 T-TH 08:00 - 09:15 Classes T-TH 11:00 - 12:15 Classes T-TH 14:00 - 15:15 Classes T 15:30 - 18:15 Classes Wednesday M-W-F 09:00
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