...The first thing when beginning an audit is the Materiality. Materiality is determined by defining if the misstatements could possibly be inluenced by any economic factors or decisions that any party made on a basis of the financial statements provided. Also, when searching for this information, finding out the size or nature of the misstatement. The auditor must also take into consideration the matter in which the professional judgement should be guided by the perception of the auditor and the financial information provided. Tolerable Misstatement is the amount of difference that can occcur on a financial statement to be either correct/true that does not have an impact on a fair presentation of a financial statement. An auditor bases tolerable misstatement for planning materiality for an audit. The first thing when beginning an audit is the Materiality. Materiality is determined by defining if the misstatements could possibly be inluenced by any economic factors or decisions that any party made on a basis of the financial statements provided. Also, when searching for this information, finding out the size or nature of the misstatement. The auditor must also take into consideration the matter in which the professional judgement should be guided by the perception of the auditor and the financial information provided. Tolerable Misstatement is the amount of difference that can occcur on a financial statement to be either correct/true that does not have an impact on a...
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...Brian Finley Auditing Case 3-1 1. What alternatives are available? a. One alternative is that Brent could lie about doing his share of the audits. He could ‘pretend’ to forget a section of his duties in order to shorten up his work load and finish under the budget line. That is a good idea because he would spend more time with his wife and make her happier and also make the firm happy when looking at the budget. It is bad, however, because it would be lying to the client and also be unethical in the accounting rules. He may be found out too, and that may cause his future promotions to be delayed. b. He could also do all of his work and go in over budget. That is an honest way to go. It measures up to accounting principles. The cons are that no one will be happy at the end. His wife will still be mad about his time out of the house, and the firm will be mad since it is over budget and could delay his future success with the company. c. He could also eat the time so all of the work done is under budget. It is an unethical way to go but everyone will be happy at the end of the day. His boss would see the 35 hours completed and client would have the audit finished. But he is putting in all of those hours and may not get paid extra and he would still spend too much time away from his wife. d. He could also tell his boss ‘NO’. He is paid to work 40 hours a week and refuses to work anymore because he must invest in his personal life as well. His...
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...Audit Program Design Part I ACC/546 Auditing Monday, July 14, 2014 Anderson, Olds and Watershed (AOW) 1 Fraud Free Way Shoetown, ME 00001 July 25, 2014 Mr. Larry Lancaster Chairman, President, and Chief Executive Officer Apollo Shoes, Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Lancaster: This letter will confirm our understanding of the arrangement for our engagement of an independent audit of the internal controls of Apollo Shoes, Inc. This letter will outline the nature and limitations of the services we will provide. Anderson, Olds, and Watershed will provide consultation to Apollo Shoes Inc. about the internal control requirements of the 2002 Sarbanes-Oxley Act (SOX) Section 404 and test the internal controls to identify any significant deficiencies and/or material weaknesses. Statement on Auditing Standards (SAS) 115 states that these are matters that warrant the attention of management, our purpose is to provide our opinion and recommendation. At the conclusions of the engagement we will provide to Management and the Audit Committee a detailed report, including an executive summary, of all findings and recommendations. The purpose of this engagement letter is to define the terms of contract between Anderson, Olds, and Watershed and Apollo Shoes, Inc. and to identify the assurance services to be provided. This letter will also provide background information on the following conditions: * Significant regulations and guidelines related to audits...
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...CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1–1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying documents related to the Enron case brought into question the ethical standards of the profession. 1–2 Assurance services are professional services that enhance the quality of information, or its context, for decision making. The two types are: (a) those that increase the reliability of information and (b) those that involve putting information in a form or context that facilitates decision making. 1–3 A financial statement audit is, by far, the most common type of attest engagement. The overall assertion, made by management, most frequently is that the financial statements follow generally accepted accounting principles. 1–4 A large corporation with securities listed on a stock exchange is required by the rules of the stock...
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...and risks related to investments, and fraud and illegal acts risk assessment. Auditing Service When it comes to auditing, we are here to audit your financial statements. According to Arens, Elder, and Beasley (2012), auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Chapter 1). Our goal is to independently verify the financial statements produced by your company. My team will test revenue, expenses, purchasing, and many other items during our financial statement audit. This should give you the confidence in the information your company is putting out. Assurance Service In addition to the auditing service that AOW will provide to Apollo, we are also prepared to offer assurance services such as attestation services, controls over and risks related to investments, and fraud and illegal acts risk assessment. Attestation services include audit of internal control over financial reporting, reviews of historical financial statements, and attestation services on information technology. According to Arens, Elder, and Beasley (2012), for an audit of internal control over financial reporting, management asserts that internal controls have been developed and implemented following well established criteria (Chapter 1). Reviewing your historical financial...
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...Chapter 01 An Introduction to Assurance and Financial Statement Auditing True / False Questions 1. | Independence standards are required for audits of public companies, but not for audits of private companies. True False | 2. | Decision makers demand reliable information that is provided by accountants. True False | 3. | Information asymmetry seldom occurs. True False | 4. | Conflicts of interest often occur between absentee owners and managers. True False | 5. | Auditing services and attestation services are the same. True False | 6. | Auditing is a type of attest service. True False | 7. | Testing all transactions that occurred during the period is cost prohibitive. True False | Multiple Choice Questions 8. | Why do auditors generally use a sampling approach to evidence gathering? A. | Auditors are experts and do not need to look at much to know whether the financial statements are correct or not. | B. | Auditors must balance the cost of the audit with the need for precision. | C. | Auditors must limit their exposure to their auditee to maintain independence. | D. | The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company. | | 9. | Which of the following statements best describes a relationship between sample size and other elements of auditing? A. | If materiality increases, so will...
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...Jane Shoes Apollo Shoes 1234 Shoe Avenue Shoetown MA 12345 Dear Ms. Jane, This letter serves to confirm the request for Team C CPA to consult with Apollo Shoes on Sarbanes-Oxley Section 404. The consultation will include the significant regulations and guidelines related to audits of internal control. We will identify the internal control risks within Apollo Shoes as well as a description of the relationship between internal controls and the audit process, and a brief synopsis of our responsibility in detecting and reporting fraud. Guidelines According to COSO “Internal control is broadly defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.” “While internal control is a process, its effectiveness is a state or condition of the process at one or more points in time.” The Sarbanes-Oxley Section 404 Act, requires management to produce an “internal control report” along with the annual Exchange Act report. This report is required to confirm “the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting.” The report must also “contain an assessment, as of the end of the most recent fiscal year of the Company, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.” To successfully complete this management...
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...CHAPTER 1 AN INTRODUCTION TO ASSURANCE AND FINANCIAL STATEMENT AUDITING Answers to Multiple-Choice Questions 1-13 | b | | 1-19 | a | 1-14 | b | | 1-20 | d | 1-15 | c | | 1-21 | d | 1-16 | c | | 1-22 | d | 1-17 | c | | 1-23 | b | 1-18 | c | | | | Solutions to Problems 1-24 The memo should cite the following facts: * There is a historical relationship between accounting and auditing. * When parties to the agency relationship (contract) do not possess the same amount of information (information asymmetry) there is a natural conflict of interest between the parties. For example, when an owner and manager are negotiating an employment contract, the owner may assume that the manager likely will use organizational funds for personal uses. Auditing plays an important role in such relationships. The owner and manager will consummate an employment contract only if the manager agrees to be monitored. Auditing can be used to monitor the contract agreed to by the two parties. (P.S. As an attorney, Lee should be well versed on contract law.) * ...
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...Beginning the Audit Report ACC546 - Auditing University of Phoenix Audit Engagement Checklist Initial Date _____ ____ 1. Research the audit engagement and apply appropriate Auditors Standards and Code of Ethics _____ ____ 2. Determine appropriate laws/regulations that govern this area: a. state law b. federal law c. guidelines d. Other - wage/hour, etc. _____ ____ 3. Maintain an awareness of the potential for fraud, and when appropriate: a. Design audit steps to address significant risk of fraud b. Employ audit tests to detect fraud c. Determine if suspected fraud merits investigation _____ ____ 4. Determine if the audit should be conducted under the attorney client privilege _____ ____ 5. Establish the audit engagement's objective and scope _____ ____ 6. Collect data a. Policies and procedures b. Preliminary surveys c. Meeting summaries d. Other relevant and useful information _____ ____ 7. Evaluate the relevance, sufficiency and competence of data collected _____ ____ 8. Analyze and interpret data collected _____ ____ 9. Develop work papers _____ ____ 10. Review of work papers _____ ____ 11. Communicate interim progress with auditee _____ ____ 12. Draw conclusions _____ ____ 13. Report audit engagement results: a. Conduct exit conference b. Prepare draft report...
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...the effectiveness of a hand hygiene program within the National Hand Hygiene Initiative. HHC is a valid and reliable measure within the acute care sector, in both public and private hospitals throughout Australia. | Generally, the 5 Moments for Hand Hygiene audit tool is ideally suited to facilities that have the greatest staff/patient activity and interaction. This results in higher numbers of ‘Moments’ being audited in shorter time periods. | Auditing facilities where there is little staff/patient activity and interaction will result in a small number of moments being observed (i.e. non-acute, primary care, mental health settings) and resources required to undertake auditing may be better utilised measuring other aspects of a hand hygiene program (e.g product placement and availability surveys, education etc). | Currently HHA do not recommend routine HHC auditing with the 5 Moments for Hand Hygiene audit tool as an outcome measure in the non-acute, primary care or mental health setting. | All facilities should be aware of their jurisdictional requirements when planning measurements of their hand hygiene program. A number of assessment tools are available below which can be used or modified as desired. | HHC audits should only be undertaken by HHA trained and validated HHC auditors. | Annual Auditor Validation The National Hand Hygiene Initiative (NHHI) is based on the World Health Organisation (WHO) - World Alliance for Patient Safety campaign – “Clean Care is Safer...
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...up another notch. Leaders just don’t have influence over the people they lead. They use their influence “to influence people in a particular context to pursue their God-given direction”.[1] In other words, it is the church leadership’s job to help the people they lead to see God and His work in their lives, to understand their purpose, actively pursue God’s plan for their life, and carry that plan out effectively. Because of the heavy mandate that all church leadership carries, it is imperative for anyone who is in a leadership position to know their leadership style and their strengths and weaknesses as it pertains to leadership. The best way to do this is to do a self-elevation or use resources that will help you survey the effectiveness of your leadership. During the first half of this course, I have been given the opportunity to read about qualities that a leader should possess. Along with the reading, the author has provided audits that when taken would help me to survey my leadership style and determine to what degree I possess these qualities. This leadership audit is a combination and analysis of the individual audits contained within the reading and will serve as a tool to boost my leadership skills to better serve those that I lead more effectively. Christian Leader Audit In chapter one, Malphurs discussed “eight distinctives of Christian leadership” and provides example of first-century church leaders.[2] The...
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...Look at the words and expressions in italics, and then rearrange the letters in bold that follow each expression to make a word with the same or a similar meaning in the same context . 1. Help a customer. ssaits 2. Agree to do something. nnscoet 3. Make something clearer. aylrifc 4. Book a restaurant table. veerres 5. Control a process or activity. ergateul 6. Examine information in detail. alseyan 7. Collect information. tgaehr 8. Speak to an audience. rsedsad 9. Choose something. celeste 10. Produce or make good sales of a product. ereengat 11. Manage or organise a department. stainierdm 12. Verify something is true. nmfcori 13. Examine financial accounts. duita 14. Give information or instructions to your staff. erbfi 15. Tell somebody about an event that has happened. taeler 16. Measure the effect of something. nafytqui 17. Remove something from a sum of money. cdutde 18. Require somebody to do something. lbioeg 19. Increase your area of operations. iwned 20. Take on new staff. mleyop 1. Finish making plans for something. ilifsena 2. Suggest something without saying it directly. yplim 3. Ask somebody for advice. ucsotnl 4. Make a process go faster. aeclrsteae 5. Deal with a problem. leahdn 6. Keep something for future use. etrina 7. Come to an interview. teadnt 8. Give or take a message to somebody. ecvyon 9. Make up for something you have done wrong. pensacteom 10. Reveal information to somebody. esolcsid 11. Settle an argument or disagreement...
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...Accreditation Audit Task 1. A1. Communication, this is the key focus area that is evaluated in this summary. Communication is a key focus area of the joint commission audit and is also a key area in which Nightingale Community can make enhancements. Communications must be a two way free flow of information. The information exchanges occur between providers, staff, and patients or clients. This was an area that needed improvement was noted in the previous accreditation audit. Some noted prior issues from 2 years ago included patient and family education and information not being properly disseminated to the nursing staff. These are areas where we have targeted and currently meet. Some areas that we continue to work on are as follows. We currently need to address our time out policy. During the last year there were three months that Nightingale Community did poorly in this area. We must make sure that the time outs are not only conducted properly but more importantly documented in the patients chart. If the time out is not properly documented in the patients chart the organization will not receive credit, it will be as though it never occurred. We must make sure that all providers and clinical staff have appropriate training and training materials provided for the time out policy. We will continue to quantify our efforts monthly in this key area. We as an organization must make this goal monthly. Critical results are an issue of concern for the organization. Critical results...
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...Running Header: Task I 1 Task I Abigail M. Garcia Western Governor’s University: Accreditation Audit Running Header: Task I 2 Executive Summary Nightingale Community Hospital is committed to providing quality care and aims to be the first choice hospital for patients in the community. Four core values represent the passion Nightingale has for excellence: Safety, Community, Teamwork and Accountability. The goals of the hospital are to uphold an atmosphere of healing, promote the benefits of health, and to provide a compassionate experience for all. Overview In order to reach the aforementioned goals, values and commitments, Nightingale Community Hospital must be in compliance of regulatory agencies which outline specific, goaloriented sets of standards. The Joint Commission is one such agency that provides assistance and support to health care facilities to ensure that certain standards are met, education for implementing new standards and feedback of current healthcare practices as part of the accreditation process. According to Facts about Hospital Accreditation (2014), the “Joint Commission standards address the hospital’s performance in specific areas, and specify requirements to ensure that patient care is provided in a safe manner and in a secure environment (p. 1).” This agency uses a Priority Focus Process methodology to identify areas within healthcare organizations which have a significant impact on patient safety and quality of care. One of these...
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...INSS 370 Final Exam Study Guide Below is a study guide for your final exam. There will be a combination of true/false and multiple choice questions. 1. Who is responsible for prioritizing the product backlog? 2. What does a burn‐down chart show? 3. What are the principles outlined in the Agile Software Development Manifesto? 4. If our highest priority is to satisfy the customer through early and continuous delivery of valuable software, in general, how can we do that? 5. In agile software processes are the highest priorities to satisfy the customer through early and continuous delivery of valuable software? 6. What traits need to exist among the members of an agile software team? 7. In agile development is it more important to build software that meets the customers' needs today than worry about features that might be needed in the future? 8. The ____ phase of the SDLC includes four main activities: requirements modeling, data and process modeling, object modeling, and consideration of development strategies. 9. One of the main activities in the systems analysis phase is ____ modeling, which involves fact‐finding to describe the current system and identification requirements for the new system. 10. How is planning performed on projects that use Agile approaches? 11. Who should be the main judge of the business value (think of the various roles within an agile team)? 12. How should work be allocated and who should allocate the work to the team in an Agile ...
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