Objectives: By studying this chapter‚ students should be able to: 1. Discuss the liability environment in which auditors operate‚ the factors that have led to litigation against auditors‚ increasingly including shareholder class actions‚ and the effects of lawsuits on audit firms. 2. Describe the causes of legal action against auditors and identify parties that may sue auditors. 3. Explain the impact of key court cases on the public accounting profession. 4. Describe auditor
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DEFINITION OF AUDITING Auditing is described as the independent examination of and expression of an opinion on the financial statements of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation. Thus auditing of information systems can be defined as independent examination of and expression of an opinion on the development‚ documentation and controls of information systems of an enterprise by an appointed auditor in pursuance
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The Authority Attaching to Philippine Standards Issued by the AASC Engagement Standards | Application | 1. Philippine Standards on Auditing (PSAs) | * Audit of historical financial statements | 2. Philippine Standards on Review Engagements (PSREs) | * Review of historical financial information | 3.Philippine Standards on Assurance Engagements (PSAEs) | * Assurance engagements dealing with subject matters other than historical financial information | 4. Philippine Standards on Related
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between sample size and other elements of auditing? A. If materiality increases‚ so will the sample size. B. If the desired level of assurance increases‚ sample sizes can be smaller. C. If materiality decreases‚ sample size will need to increase. D. There is no relationship between sample size and materiality or the desired level of assurance. 3. Which of the following statements about the study of auditing is NOT true? A. The study of auditing can be valuable to future accountants and
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What is ‘housework’‚ and what changes are occurring in this area of work today? Broadly speaking‚ the term ‘housework’ is used to describe the management of the home‚ which ‘involves a range of activities‚ the purpose of which is to maintain household members’ (Hatt 1997: 39). Hatt discusses how the industrial revolution and the rise of capitalism created a tidal wave of mass social change; causing production to shift from within the household to the factory. The home is now the site of the ‘reproduction’
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Youth during the time of Rizal And the Modern times INTRODUCTION Filipinos are known to be brave‚ especially if the one they’re fighting for is worth it. As former Sen. Ninoy Aquino said: “Filipinos are worth dying for”. He is right because if we are going to reminisce the past‚ Filipinos are good people who want a simple life and a peaceful country. Reform in the country was met by spirituous youths who wanted make a better country for the following generations. From the time of colonization
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MANAGEMENT ACCOUNTING AND ORGANIZATIONAL CHANGE: IMPACT OF ALIGNMENT OF MANAGEMENT ACCOUNTING SYSTEM‚ STRUCTURE AND STRATEGY ON PERFORMANCE Introduction In the search to understand management accounting in competitive environments and advance technologies‚ change has increasingly become a focus for research. Many firms have experienced significant changes in their organizational design‚ competitive environments and technologies. Business environments exhibit a variety of structures and processes
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During the eighteenth century‚ the Industrial Revolution started in Britain‚ then throughout the eighteenth and nineteenth centuries the industrial revolution spread throughout Europe. The industrial revolution affected the lives of many people but not in a good way. Terrible working conditions in factories‚ increase in pollution‚ and changing the social aspects of women are all reason for why the industrial revolution was a bad thing. When machinery was created‚ more people had to work in factories
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negatively affected Ireland and its people. Due to this famine‚ many factors resulted from it and changed the course of Irish history. Three of these factors are reduced population‚ decline of the Gaelic language‚ and increased harshness of the Irish landlords. The Great Potato Famine was caused by a type of fungus called potato blight‚ which caused the potatoes to become mushy and inedible (Trueman). The 1846 potato crop was a failure due to this fungus and continued to destroy the 1847 crop
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• Items containing selected population characteristics‚ such as transactions selected from each month during the year or from each location. • Large dollar coverage in which the auditor focuses on selecting the relatively large items in the population for testing. 3. What is the key advantage and disadvantage associated with systematic sample selection? How must auditors address this disadvantage? Ans: The key advantage is its ease of use. Generally‚ systematic samples are easily drawn
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