intentional cover up will have high costs to the economy and dire consequences. Even though there are laws and standards that regulate auditing‚ it does not completely stop or prevent firms from doing immoral acts. Before Sarbanes-Oxley Act of 2002‚ auditing for both public and privately held companies followed the AICPA ’s standards of the 10 generally accepted auditing standards. In the years 2000-2002‚ there had been an increased of major corporate accounting scandals. Large corporations such as Enron
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to perform the audit. My firm had no prior experience with auditing dog food manufacturers‚ but we decided to venture out and accept the audit at the end of the year. Assigned to the lead the audit are Pete‚ Ben and Maureen. Pete is a very experienced auditor that I have worked with on several audits. Ben and Maureen were assigned field auditors to assist myself and Pete. Ben has been with my firm for one year with no prior auditing experience to Keller CPAs. Maureen has 5 years prior experience
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explain how to conduct a successful internal audit. To have a successful internal audit the company must construct a sound plan‚ have an upbeat atmosphere and encourage an open dialog of communication between the auditor and the client. Today many auditing organization are demonstrating how the audit process will work through Web-based presentations. The first topic I will discuss is the four stages of an audit. First and Announcement letter- this is when the Internal Auditor Director informs the
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general‚ warrant response from the auditing team during their assessment of financial statements. Although the number of shirts sold to the auditing team do not constitute a material misstatement in regards to the financial statements‚ the risk related to fraud should be assessed and mitigated during the planning and carrying out of the audit and further audit procedures. These transactions do not affect the existence and valuation assertions relevant to auditing. The right and obligations assertions
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Standards Based Decision Making Team C June 24‚ 2012 ETH 376 Professor Standards Based Decision Making Green and Associates is the CPA firm retained by the ABC Corporation to handle their external auditing duties. The auditing team at Green and Associates took time to review aspects of ABC’s finances and had some questions regarding their client’s monthly statements that made them a little uneasy. Items such as their inventory valuation methods not to mention‚ Green’s new
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the auditor’s study of business operations for the purpose of making recommendations about economic and efficient use of resource‚ effective achievement of business objectives and compliance with company policies. • The term operational auditing is the most widely used today. • Definition of terms o OPERATIONAL – implies a focus on operations‚ as opposed to financial position. o MANAGEMENT – implies that the information obtained in the audit process is useful to management
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8.0 Background According to Wikipedia‚ Internal auditing is a profession and activity involved in helping organizations achieve their stated objectives. It does this by using a systematic methodology for analyzing business processes‚ procedures and activities with the goal of highlighting organizational problems and recommending solutions. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. Internal auditors are employed by companies
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Siqi Zhao Date: 1/14/2015 To: A424 Case 1.2 Subject: Case Questions 1. Since E&Y performs its auditing duties merely as an external auditor for Lehman‚ the scope of auditing work should be based on the audit needs from Lehman. On the other hand‚ it is very important for external auditors to keep the independent and objective standpoint in order to ensure their auditing opinions are effective. E&Y did not have a responsibility to be involved in the development process of new accounting
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7. A perceived lack of integrity caused irreparable damage to both Andersen and Enron. How can you apply the principles learned in this case personally? Generate an example of how involvement in unethical or illegal activities‚ or even the appearance of such involvement‚ might adversely affect your career. What are the possible consequences when others question your integrity? What can you do to preserve your reputation throughout your career? A perceived‚ or even likely more detrimental to one’s
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Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence‚ audit planning‚ audit stages‚ internal controls‚ confirmations‚ sample size‚ obtaining evidence‚ inventory‚ warehousing cycles‚ Professional Rules of Conduct‚ and auditor’s legal liability. Each of these auditing concepts are explained and then applied to the scenario between Smackey Dog Foods‚ Inc. and Keller CPAs. Questions and
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