...MANAJEMEN INFORMATIKA DAN KOMPUTER (STMIK) DIPANEGARA MAKASSAR 2013 1. Jelaskan tentang software audit dan berikan gambarnya serta kelebihan dan kekurangannya. Jawaban : IDEA (Interactive Data Analysis Software) Merupakan software audit yang dapat digunakan untuk membuat rekonsiliasi, investigasi kecurangan, internal / operational audit, pemindahan file, mempersiapkan laporan manajemen dan analisis-analisis lainnya, termasuk menelusuri security log. IDEA adalah software yang powerful dan mudah dioperasikan untuk membantu akunting dan professional keuangan meningkatkan keahlian auditing, mendeteksi kecurangam dan memenuhi dokumen-dokumen standar. Software ini memungkinkan kita untuk mengimpor data dengan cepat, menyertakan, menganalisa, mengambil sample dan mengekstrak data dari berbagai macam sumber, termasuk laporan yang dicetak dari sebuah file. Didesain oleh Akuntan untuk Akuntan, IDEA menawarkan sebuah tampilan antar muka yang intuitif termasuk fungsi point dan klik, menu bantuan, tutorial dan multi tampilan. Dengan kemampuan ukuran file yang tak terbatas, IDEA dapat mengakses dan menganalisa data yang berukuran besar dalam beberapa detik saja, membebaskan anda untuk menganjurkan manajemen dalam proyek tambahan dan memberikan analisa yang mendalam. Kelebihan : * Memang dirancang sebagai software audit sehingga semua fungsi audit sudah tercakup/ built-in didalamnya * Dapat membuat /mencatat semua log / perubahan dalam database...
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...Assignment 1 HRM532 Date: October 18, 2011 Talent Practices at The Home Depot Home Depot’s Plan Home Depot had several intentions in regarding the use of its organizational talent to gain a competitive advantage in the Do It Yourself Industry. The first of these is to ingrain the importance of corporate success through human capital. In the current economic environment, corporate success and growth; even survival, is dependent on the firm's ability to create employees that are motivated, skilled, and committed. The concept of how important human capital is to corporate success can be summed up with a quote from Nobel Prize-winning economist Gary S. Becker says that “The basic resource in any company is the people. The most successful companies and the most successful countries will be those that manage human capital in the most effective and efficient manner” (Brocaglia, n.d.). The Home Depot embraced this idea when the company considered its organizational talent as a competitive edge. The second of these intentions is first-class customer service through engaged employees. Employees are the first line of defense and influence when it comes to a firm's level of achievement in customer service. Customer service and satisfaction become the competitive advantage that allows for retaining customers longer even through severe price competition; and that satisfaction should be paramount through all stages of customer interaction (IBM, 2007). By placing such...
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...Casualty Actuarial Society Committee on Enterprise Risk Management has adopted the following definition which includes the purpose of ERM : “ERM is the discipline by which an organization in any industry assesses, controls, exploits, finances, and monitors risks from all sources for the purpose of increasing the organization’s short – and long-term value to its stakeholders.” In the US, COSO published its ERM-Integrated framework in 2004. COSO identified a need for robust framework to help companies effectively identify, assess, and manage risk. The resulting framework has eight components and four objectives. The eight components are:- * Internal Environment- It encompasses the tone of an organization, and sets the basis for how risk and control are viewed and addressed by an entity’s people. * Objective setting –Objectives must be aligned with the organization’s risk appetite, which derives risk tolerance levels for the organization. * Event identification-Management identifies potential events that, if they occur, will affect the entity’s ability to successfully implement the strategy and achieve objectives adversely or positively. * Risk Assessment-It allows an entity to consider the extent to which potential events have an impact on achievement of objectives. * Risk response-It includes risk avoidance, reduction, sharing and acceptance. * Control Activities-These are the policies & procedures that help ensure the management’s risk responses...
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...Risk-based Auditing PHIL GRIFFITHS CHAPTER 1 What is Risk-based Audit? The Internal Audit identity crisis Let’s face it, if you are reading this book, you are probably either already an auditor, preparing to become one or responsible for managing or overseeing the function. The other possibility is that you are considering a role in Internal Audit – if this is the case I hope to be able to whet your appetite and show you what a wonderful opportunity it brings. Whichever category of reader you are the first major bridge to be crossed is the identity of the function. I was to learn that we tend to meet any new situations by reorganising – a wonderful method for creating the illusion of progress This quote by the Roman Caius Petronius in AD 66 illustrates the dilemma for Internal Audit. Internal Audit has seemingly attempted a number of changes in approach over the years, but have any made a real difference? Is Internal Audit seen as the ‘White Knight’ charging in full armour, past cheering throngs of well-wishers to rescue the damsel in distress or the ‘Lady with the Lamp’, splendid and serene, tending to the ranks of wounded in the Crimean War without a thought for her personal well-being. Probably not. It is more likely that an auditor may be seen, to use the old joke, as the team that comes in after the battle and bayonets the wounded. The role still has somewhat of an identity crisis. Risk-based audit offers some, if not all, of the solutions. In the following chart I...
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...Roles of audit committee An Audit Committee does not focus solely on internal audit activities or on financial issues. Recent trends are for it to take on broader roles and responsibilities. The establishment of an Audit Committee affords the opportunity to set aside time to focus on governance, risk and control issues. The key responsibilities of an Audit Committee include: overseeing the risk management framework and processes; reviewing compliance related matters and internal controls; overseeing the relationship, appointment and work of the external and internal auditors; and reviewing the annual financial statements and recommending them for governing body approval. As it relates to oversight of the internal audit function, the responsibilities of Committee’s include: ensuring that internal audit activity is structured to achieve organisational independence; ensuring the internal audit charter permits full and unrestricted access to top management, the Audit Committee and the governing body; ensuring unrestricted access by internal auditors to records, personnel, and physical properties; ensuring the function is appropriately resourced; and ensuring the function is operating effectively. In relation to its other roles, Audit Committee responsibilities could include: review, with management, the adequacy of policies and practices for risk management and the operation of the internal control system; review, with management, the adequacy...
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...A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud Continues; it’s basically about a Fraud case with MCI. The following questions will be answered below 1) Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud, 2) Identify and justify the approach you would take if you suspected fraudulent activity within an organization where you work, 3) Critique the ethical nature of Pavlo’s actions in the case and 4) Apply one (1) theory related to crime causation to this case. The internal control weakness that exists at MCI was Pavlo; he was able to manipulate the AR (Accounts Receivable) system because he was the creator and developer. The lack of segregation of duties takes please here because the same employee is able to receive payments, update accounts receivable records and/or reconcile the company’s bank account. This gives the opportunity to be able...
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...INTERNAL CONTROLS RUTASHA BRABHAM 1XACC/280 AUGUST 7, 2011 Internal controls are beneficial to a company’s structure and organizational design. Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization (internal controls are simply good business practices (Internal Audits, n.d.). There are five components of internal controls. Control environment, risk assessment, control activities, information and communication, and monitoring are the five components of internal controls. The control environment is connected to the outline of the company. The control environment involves the integrity, ethical values, the company’s philosophy, and the competence of the entity’s people (US Regents, 2011). The control environment provides the structure for a company’s policies and values for their day to day activities. Control environment factors include integrity and ethical values, the commitment to competence, leadership philosophy and operating style, the way management assigns authority and responsibility, and organizes and develops its people, and policies and procedures (US Regents, 2011). Risk assessment is a step in a risk management procedure...
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...eportDutch Lady Milk Industries Berhad Laporan Tahunan 2011 Annual Report Dutch Lady Milk Industries Berhad is a subsidiary of Royal FrieslandCampina NV. www.frieslandcampina.com This Annual Report is printed on 100% recycled paper BLUE VALUES Believe in Growth Look Forward Unite as One Team Excel in Execution contents Notice of Annual General Meeting Corporate Information Chairman’s Statement Corporate Governance Statement Directors’ Profile Audit Committee Report Corporate Social Responsibility Statement of Internal Control Directors’ Report Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Statement by Directors Statutory Declaration Independent Auditors’ Report Financial Highlights Additional Compliance Information Other Information Proxy Form • • • • • • • • • • • • • • • • • • • • • 1 3 6 8 14 16 20 24 28 30 31 32 33 34 59 59 60 61 62 63 65 notice of annual general meeting 1 NOTICE IS HEREBY GIVEN that the Forty-Ninth Annual General Meeting of the Company will be held at Hotel Armada, Lorong Utara C, Section 52, 46200 Petaling Jaya, Selangor Darul Ehsan, on Wednesday, 13 June 2012 at 10.00 a.m. for the purpose of transacting the following business: AGENDA AS ORDINARY BUSINESS Ordinary Resolution 1 1 To receive the Audited Financial Statements for the financial year ended 31 December 2011, together with the Reports of the Directors...
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...Case #1 Accounting Fraud at WorldCom 1. The objective of financial reporting is to provide useful information to capital providers, which are also known as the shareholders and investors. At WorldCom, the managers not only failed to provide useful information to the investors, but the fraud they created in their financial statements lead to misjudgment for a lot of the capital providers. The actions of accrual releases that the managers performed completely ignored the objective of financial reporting that describes the uncertainty of prospective cash flows. As for the expense capitalization, Sullivan ignored another objective of financial reporting to clearly portray the economic resources of an enterprise. They recognized the unused line costs as assets, instead of liabilities. 2A. WorldCom transferred funds from the accrued expenses back to current assets by claiming that they were overstated. It disregarded the basic concept of conservative accounting. Expenses are supposed to be recognized when accrued, not when actually paid. Releasing accrued expenses takes away money that was set aside to pay for line costs, putting the money back into assets and overstating the amount of current assets on hand. Expense Capitalization categorizes operations expenses as capital investments, which are expenses over a longer period of time. Expense capitalization is usually reserved for investment projects that provide value over time and expenses are written off over time. Instead...
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...1. (Points: 0.5) | | According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly responsible fora. hiring and firing the external auditors.b. performing tests of the company's internal control structure.c. certifying the accuracy of the company's financial reporting process.d. overseeing day-to-day operations of the internal audit department. | | Save Answer | | 2. (Points: 0.5) | | Which of the following duties could be performed by the same individual without violating segregation of duties controls?a. Programming new code for accounting software and testing accounting software upgradesb. Approving accounting software change requests and testing production scheduling software changesc. Approving software changes and implementing the upgraded softwared. Managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices | | Save Answer | | 3. (Points: 0.5) | | Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities.a. eventb. activityc. processd. system | | Save Answer | | 4. (Points: 0.5) | | Which of the following is accomplished by corrective controls?a. Identify the cause of the problem.b. Correct the resulting errors.c. Modify the system to prevent future occurrences of the problem.d. All of...
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...Koss Case 1.) I believe the Principal Accounting Officer (PAO) should attest to the effectiveness of internal control when that position is not also the CFO. The PAO has extensive knowledge of the accounting processes and control structures within the company so an attestation on internal control effectiveness would be pertinent. In the Koss case, the PAO is the one perpetrating the fraud so the attestation from the PAO would be unhelpful. However, I do believe the opinion of this position does matter on assessing internal control effectiveness. 2.) When one individual holds that much control over an organization it becomes a huge inherent risk to the auditor. If one person is the CEO, CFO, and COO, there are not that many others who would question decisions or scrutinize certain actions of someone with that much power. There is clear ability for management override and therefore inherent risk should be set high for the auditor. Risk is mitigated with accountability, and in a case like this one there seems to be a huge lack of accountability among upper level executives. 3.) I think there should be minimum education requirements for CFOs of publicly traded companies. Not many people become CFOs without some advanced degree. Most of the time the exception to that would be people without business degrees who inherit the position, like Michael Koss. For these people there should be an educational requirement. The reason is because investors rely...
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...any corporations or persons to be involved in global bribery and required all companies to implement internal control systems. In 1985, in response to these reforms 5 major private sector accounting associations together created The Committee Of Sponsoring Organizations, also referred to as COSO, to help sponsor the National Commission on Fraudulent Financial Reporting (Treadway Commission). The 5 associations included the American Institute of Certified Public Accountants, American Accounting Association, Financial Executives International, Institute of Internal Auditors and the Institute of Management Accountants. The original chairman of COSO was James Treadway, which led to it being referred to as the Treadway Commission. This association was formed to inspect, analyze and make recommendations of fraudulent corporate financial reporting. Today this association is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence. COSO offers 5 key components to the Internal Control Framework: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. Control Environment basically sets the groundwork for an organization by directly influencing the employees directly. This also is the foundation for all the other factors of Internal Control by providing discipline and structure. The control environment factors include delegation of...
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...WorldCon: A Case Study of WorldCom ACCT 424B Prof. R. Hayes May 12, 2011 WorldCom is a telecommunications company that was once worth billions but is now merged with Verizon after bankruptcy due to fraudulent activities. The question is what caused one of the largest US corporations began a spiral into financial ruin. WorldCom according to John Sidgmore, a former top executive of WorldCom, stated that WorldCom generated annual revenues of over $30 billion a year, has more than 60,000 employees, over 20 million customers, and was one of the largest internet providers in the world. This made WorldCom a key component in the USA’s economy and communications infrastructure. Bernie Ebbers isn’t the founder of WorldCom but was a major factor in making LDDS which is a small start-up company in Mississipi that offered regional long distance discount services into a major global telecommunications company. Ebbers in 1997 stated that his goal was to be the number one stock on Wall Street. His plans were focused on mergers for growth relying on using WorldCom stock to finance the mergers. Ebbers acquired around 75 companies with the largest being MCI. This strategy of constant mergers for growth appeared to be working but making these mergers succeed is a difficult task. The main problem with mergers lies in the reorganization of the business to effectively incorporate the acquisitions. An area that suffered from these mergers was customer support and many began to wonder if...
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...journal is available at www.emeraldinsight.com/0268-6902.htm MAJ 19,4 Control self-assessment as a route to organisational excellence A Scottish Housing Association case study James Sheffield Comhairle, The Scottish Centre for European Public Sector Studies, University of Paisley, Paisley, Scotland, and 484 Siobhan White Division of Accounting and Finance, Glasgow Caledonian University Business School, Glasgow, Scotland Keywords Scotland, Housing, Financial management, Auditing, Corporate governance Abstract Control self-assessment (CSA) has been discussed as an audit technique, but little practical guidance is available in the UK on the subject. A limited number of public sector organisations have implemented it. This paper describes a case study of CSA implementation in a Scottish Housing Association. The case study details the decision processes that led to the choice of CSA as a favoured audit technique, and the development of CSA skills within the organisation. This paper examines the broader benefits of a CSA approach, in terms of performance management and employee empowerment. This paper also uses a cost benefit analysis to examine the efficacy of CSA for small organisations. Managerial Auditing Journal Vol. 19 No. 4, 2004 pp. 484-492 q Emerald Group Publishing Limited 0268-6902 DOI 10.1108/02686900410530493 Introduction West of Scotland Housing Association (WOSHA) is a provider of social housing, whose homes are rented to people who apply to the Housing Association...
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...monitor results of operations * Controls to monitor other controls * includes activities of the internal audit function, the audit committee, and self-assessment programs * Controls over the period-end financial reporting process * Policies that address significant business control and risk management practices B. The period-end financial reporting process is particularly important because of its end-user intent. The process involves: * Methods used to enter transaction totals into the general ledger * Methods related to the selection and application of accounting policies * Methods used to initiate, authorize, record, and process journal entries in the general ledger * Methods used to record recurring and nonrecurring adjustments to the annual and quarterly financial statements * Methods for preparing annual and quarterly financial statements and related disclosures. 3 Region Net Income US Northeast | $11,541 | US Southeast | $57,704 | US Central | $39,791 | US Southwest | $60,853 | US Northwest | $42,318 | Mexico | $18,712 | Europe | $153,877 | The bolded regions represent the amounts over the ten percent threshold of net income. We chose ten percent because that is the threshold for determining significant accounts. The accounts over ten percent should be further investigated in terms of their internal controls to make sure there are no material...
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