IN DEPENDENCE OF AUDITOR – ENRON AND ARTHUR ANDERSEN CASE Introduction The world economy in recent years has got some significant growth but also had quite serious scandals. They caused the shakes for many‚ both citizens and authorities. Therefore‚ it is a challenging time and it is the time for change. An absolutely necessity is to enhance the true reliable financial information because the success on the capital market depends on it. The key factor is to assure that auditors must take a completely
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accuracy of balances and other information with outside parties). Existence; rights and obligations Inquire Obtaining client’s representation letter; explanation to many diverse questions raised during the audit (to obtain knowledge). Completeness Examine‚ Inspect‚ review‚ trace‚ verify and vouch Examining (or vouching) paid checks‚ vendor’s invoices‚ approved client documents (voucher; purchase orders‚ receiving reports) titles‚ contracts and other documentary materials
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external auditors to be independent? Relate your answer to the primary role of external auditors? By Zachariah Godfrey-Plews This essay has asked me to look at the importance of external auditors and why it is vital for them to remain independent. I will try and look at the many ways of the advantages of independent auditing from different perspectives for example the company itself‚ the general public and the state. I think it is important to first define what an audit and an external auditor to be
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an outside firm). As defined by the Institute of Internal Auditors (IIA)‚ "Internal auditing is an independent‚ objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic‚ disciplined approach to evaluate and improve the effectiveness of risk management‚ control‚ and governance processes. Internal Auditors’ roles include monitoring‚ assessing‚ and analyzing organizational
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AUDITOR’S INDEPENDENCE AND ACCOUNTABILITY IN NIGERIA PUBLIC ENTERPRISE This study seeks to identify the determinants of auditors’ independence in public enterprises and determine the policy implications of lack of auditors’ independence in the public sector. The data for the research was primary and collected via questionnaire from the Nigerian Ports Authority Headquarters Lagos. The questionnaire responses were analyzed using the percentage method. The hypothesis was tested using
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Coursework Essay Topic: Why is it important for external auditors to be independent? Relate your answer to the primary role of external auditors. Give examples of specific ways the lack of auditor independence may impact adversely on an audit. In 2001‚ there was an event that had shaken the whole business world. The crash of Enron in US‚ followed by worldwide collapse of its auditor‚ Arthur Andersen. It was a greatest corporate failure uncovered in business
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third-party can only give information on what they know. Using physical evidence has a limitation because things may not always look as how they appear. Ernst & Whinney believed they were at one of ZZZZ Best’s restoration sites‚ but in fact Minkow had spent $4 million on a building. He did this to make it look like the building was one of his restoration sites‚ but in reality it was just a building he had bought for the sole purpose of duping the auditors. As for analytical procedures performed
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Week 3 – The auditor at risk video Handout 1 - Background to South Bay Systems Ltd South Bay Systems Ltd manufactures integrated hardware and software chemical analysis products for the medical and drugs industries. The company is owned and run by Tim Falco‚ recognised throughout the industry as being one of the most innovative hardware engineers in his field. He has already built up one very successful business in a similar market that he sold to a major competitor 5 years ago. Tim
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Involving Financial Accountants and Independent Auditors Questions 1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. To confirm that materiality is a pervasive concept in auditing‚ simply refer to the index of the professional auditing standards and identify the large number of “materiality” entries—approximately fifty‚ if you are curious.
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Integrity According to The Institute of Internal Auditors (IIA)‚ "The integrity of internal auditors established trust and thus provides the basis for reliance on their judgement". IIA further added that to be integrity‚ internal auditors: * Shall perform their work with honestly‚ diligence‚ and responsibility. * Shall observe the law and make disclosures expected by the law and the profession. * Shall not knowingly be a party to any illegal activity‚ or engage in acts that are discreditable
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