Answers to the Case of A Day in the Life of Brent Dorsey Question 2: The consequences for Brent‚ the auditing firm‚ and others involved that may arise from “eating time‚” as suggested by Scott. “Eating time” can lead to inaccurate budgeting for future audits. Managers in preparing the budget for an audit‚ often use prior years’ audits as a guide. Managers will see that the job was completed in a shorter time in previous years and this will prompt them to prepare next year’s budget based
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could be dangerous to organization. Robert‚w(1996). The writer intends to investigate that by combining and integrating all the variety of ideas‚ opinion to develop a sample of auditing model which represents training and development best practices. The authors rely on organizational level because in this level of auditing seeks the performance‚ capability of training and development and its interest towards the organization. FINDINGS: EVENT/PROGRAMME LEVEL: At the event level the approach to
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3. a) Three parties that auditors might be held liable for negligence are : 1. Liability to client (Better Production & Co) 2. Liability to third party who use the information (Usahasama City Bank) 3. Liability to the foreseen user (who rely on the auditor’s financial statement) b) No. Aiman & Co can not be held liable to Usahasama & Co. The only action available for financial loss caused by a false financial statement was in the tort of deceit. In order to succeed‚ the claimant (Usahasama)
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If You Need Love Get a Puppy. Auditing Guidance: AU § 150.02: This is the standard on independence in mental attitude in all matters relating to the audit. The auditor needs to be aware of any personal factors that could impair his independence and objectivity. AICPA Code of Professional Conduct ET Section 101.02 Rule 101- 1 Independence: This section outlines specific relationships that impair auditor independence. There is a provision for other considerations that defines the reasonable
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Behind Closed Doors at WorldCom: 2001 1. Two General Accounting employees—Dan Renfroe and Angela Walter—made journal entries in the amount of $150 million and $171 million‚ respectively‚ without detailed support. It was noted that this was not out of the ordinary at WorldCom. In your opinion‚ was this a proper accounting practice? Explain. Though this may not be out of the ordinary for WorldCom‚ this is not a correct accounting practice. The way the entries were made does not comply with the proper
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How has the Sarbanes-Oxley Bill influenced reporting by governmental agencies and not-for-profit organizations? Does the Public Company Accounting Oversight Board have authority to establish auditing standards for not-for-profits? What specific steps might governmental agencies or not-for-profits take to comply with the requirements of the Sarbanes-Oxley Bill? 1. Reporting for governmental agencies and not-for profits has become more detailed including management representations related to the
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NALGA National Association of Local Government Auditors NALGA Peer Review Committee 1220 SW Fifth Ave.‚ Room 120 Portland‚ OR 97204 (503) 823-3542 October 27‚ 2000 Mr. Ronald A. Coen‚ Director Fairfax County Internal Audit Office Fairfax‚ Virginia 22035 Mr. Coen: We have completed an external quality control review of the Fairfax County Internal Audit Office for audits initiated during the period July 1‚ 1999 through June 30‚ 2000. In conducting our review‚ we followed the standards and
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Adeniji‚ A. (2004): Auditing and Investigation. Lagos‚ Value Analysis Publishers. Agbaje‚ F. (2007). Nigeria Auditors and the Distressed Finanancial Sector. The National Accountant‚ 6(4) 36-37. Buhari(2001).Internal auditor control system. Journal of auditor (2001) 42. 423-425. Dyck‚ A.‚ Morse‚ A. and Zingales‚ L. (2008). Who blows the whistle on the Corporate fraud? www.ssrn.com (Retrieved 8/03/2011) Gay‚ G.‚ Schelluch‚ P.& Reid‚ I. (2002): Users’ Perceptions of the Auditing Responsibilities for
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Viktoria Martirosyan Case 1.1 Qt.1 Several parties were responsible for Enron crisis‚ including independent auditor‚ key executive officers‚ internal auditors‚ SEC and FASB. The hypocrisy‚ dishonorable actions and unethical behavior of Kenney Lay‚ Jeffrey Skilling‚ Andrew Fastow led to bankruptcy. This and many other problems‚ such as loss in transactions involving the swaps stocks‚ SPE related issues and est.‚ finally contributed to crisis. As Enron executives‚ all of their concerns should
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WHY IS AUDITOR INDEPENDENCE SO IMPORTANT? Auditing is the efficient critical examination done by one person or group of people’s independent from the system audited. To do an audit‚ confirmed information must be present and some standards by which the auditor can evaluate the information. Another is gathering and evaluating any information to determine whether the information being audited is identified in accordance with establish criteria to satisfy the purpose of the audit and also auditors must
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