...“A STUDY ON BANK AUDITING” BACHELOR OF COMMERCE BANKING & INSURANCE SEMESTER V (2013-14) SUBMITTED BY: ANERI SHAH ROLL NO - 88 PROJECT GUIDE: PROF. SONALI DEOGIRIKAR K.J SOMAIYA COLLEGE OF ARTS,& COMMERCE, VIDYAVIHAR (EAST), MUMBAI-400077 K.J.SOMAIYA COLLEGE OF ARTS, & COMMERCE, VIDYAVIHAR (EAST), MUMBAI – 400077 PROJECT ON: “A STUDY ON BANK AUDITING” BACHELOR OF COMMERCE (B&I) SEMISTER V (2013-2014) Submitted In Partial Fulfillment of the requirements For the Award of the Degree of Bachelor of Commerce- Banking & Insurance By Ms. ANERI SHAH ROLL NO.88 K.J.SOMAIYA COLLEGE OF ARTS, & COMMERCE, VIDYAVIHAR (EAST), MUMBAI-400077 CERTIFICATE This is to certify that Ms.ANERI SHAH of B.com. Banking & Insurance Semester V (Academic Year) 2012-2013 has successfully Completed Project on “A STUDY ON BANK AUDITING” under the guidance of PROF.SONALI DEOGIRIKAR (Mrs.SMITA DAYAL) (Dr.SUDHA VYAS) Course co-ordinator Principal INTERNAL EXAMINER EXTERNAL EXAMINER (Mrs. SONALI DEOGIRIKAR) Project Guide DECLARATION I, Ms. ANERI SHAH the student of B.com - Banking & Insurance - Semester V (2013-2014) hereby declares that I have completed Project on “A STUDY ON BANK AUDITING”. Wherever the data/information has been taken from any book or other sources have been mentioned in bibliography. The information submitted is true and original to the best of my knowledge. Student’s Signature Ms. ANERI SHAH (ROLL...
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...Identification of opportunities also includes the threats facing the firm in the areas of competitors, customers, suppliers, regulatory bodies, as well as socio-political circumstances. 3. Accounting provides the skills necessary to quantify in financial terms the factors that influence strategy formulation -- strengths, weaknesses, opportunities and threats --, and to develop projections of costs and benefits as financial expressions of strategy. Capital budgets are a prime example of the contribution accounting makes in strategy formulation. Further, organizational goals are often expressed in financial terms, for example, to achieve a particular level of return on investment. 4. Both NPV and IRR are discounted cash flow techniques (recognizing the time value of money) used for evaluating capital investment proposals. The NPV method uses a discount rate (usually, the firm’s cost...
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...Chapter 12 Audit of Cash and Other Liquid Assets Review Questions: 12-1. It is important that cash and liquid asset testing be coordinated because the assets can be quickly moved and thus substituted for each other. For example, an organization could quickly move assets between cash and certificates of deposit. 12-2. General Cash Account. This is the account used to transact most of the organization's cash transactions. It is usually a high volume, but low balance account. Because of its high volume and its liquidity it is susceptible to greater risk than most asset accounts of the same size. Imprest Payroll Account. This is an account that is maintained strictly for the payment of payroll. The organization makes a deposit equal to the monthly or weekly payroll at the time the payroll checks or electronic transfers are issued. The account is used to minimize accounting costs and to isolate payroll risks to one account. 12-3. We disagree with the auditor's assessment of inherent risk of cash transactions as low. Granted, the accounting for cash and marketable securities is not overly complex. However, the liquidity of the accounts, coupled with their susceptibility to fraud or misappropriation, makes the inherent risk of the accounts at least moderate - if not high. Most organizations recognize the high inherent risk associated with the accounts and have implemented detailed control procedures to reduce control risk to a minimal level. 12-4. Cash, when well...
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...Audit Design Program III Tonya Gaines ACC 546 March 4, 2013 Michael De Marco Audit Design Program III During phase III of the audit plan, Anderson, Olds & Watershed (AOW) will focus on two important cycles: Inventory and Warehousing Cycle and the Cash Cycle. There are six classes of transactions in the inventory and warehousing cycle: process purchase orders, receive raw materials, store raw materials, process of goods, and store finished goods and ship finished goods. Cash account is a part of every cycle except inventory and warehousing. Cash is primarily important and extremely vulnerable to fraud that is why auditor needs to be careful in the assessing risks in auditing cash account. Anderson, Olds & Watershed’s (AOW) responsibility is to conduct a fair and unbiased audit. We will conduct these tests and procedures according to PCAOB auditing standards. There is not absolute assurance that all misstatements or errors will be discovered. Inventory and Warehouse Cycle The audit of the inventory and warehousing cycle is designed to test inventory counts, processes and operations. The classes of transactions in this cycle includes sales, value of inventory, cost of goods sold, sales returns and allowances and estimates of allowance for slow moving inventory. The table below displays the interrelationship of the transactions related to audit objectives, tests of controls, and substantive test of transaction that should be approved during the...
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...Chapter 7 – Internal Controls • Key topics: • Know the broad definition of internal control and its purposes, including the objective that is particularly relevant to an audit (i.e. reliability of financial reporting) A process, effected by the entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations (effective and efficient operations), reporting (accurate financial reporting) and compliance (compliance with laws and regulations) • Describe the 5 components of internal control, related examples of each, and how each contributes to the overall control system within an entity (CRIME) 1. Control Environment: The foundation for the other internal control components; it is defined by the standards, processes, and structures that guide individuals in carrying out their duties. Basic principles include: Commitment to integrity and ethical values, Board of directors demonstrates independence from management and exercises effective oversight of internal control, Establishment of effective structure, including reporting lines, and appropriate authorities and responsibilities, Commitment to attract, develop, and retain competent employees, and Holding employees accountable for internal control responsibilities. 2. Risk Assessment: Risk assessment is management's process for identifying, analyzing, and responding to risks from internal and external sources that threaten...
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...Fundamentals Level – Skills Module Audit and Assurance (International) Wednesday 4 June 2008 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association of Chartered Certified Accountants Paper F8 (INT) ALL FIVE questions are compulsory and MUST be attempted 1 Introduction – audit firm You are an audit senior in Brennon & Co, a firm providing audit and assurance services. At the request of an audit partner, you are preparing the audit programme for the income and receivables systems of Seeley Co. Audit documentation is available from the previous year’s audit, including internal control questionnaires and audit programmes for the despatch and sales system. The audit approach last year did not involve the use of computerassisted audit techniques (CAATs); the same approach will be taken this year. As far as you are aware, Seeley’s system of internal control has not changed in the last year. Client background – sales system Seeley Co is a wholesaler of electrical goods such as kettles, televisions, MP3 players, etc. The company maintains one large warehouse in a major city. The customers of Seeley are always...
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... What are the major accounting differences between nonprofit and for-profit organizations? Why are audits becoming increasingly important in the nonprofit sector? Cite at least three reasons. Complete Exercises 4.1–4.3 in Ch. 4 of Financial Management for Human Service Administrator July 1, 20XX–December 31, 20XX (a).July 1, 20XX— Received unrestricted donation check in the amount of $15,000 from the Multnomah County Department of Health and Human Services. Debited Cash $15,000 Credited Revenue $15,000 (b) July 19, 20XX—Paid Great Northwest Insurance Company $9,000 for six more months of fire and liability insurance coverage. Debited Prepaid Insurance $ 9,000 Credited Cash $ 9,000 (c) July 15, 20XX—Paid Portland Arts & Crafts Company $3,000 for additional arts and crafts supplies. Debited Arts & Crafts Supplies $ 3,000 Credited Cash $ 3,000 (d) July 15, 20XX—transferred temporarily restricted funds in the amount of $3,000 from investments to pay for additional arts and crafts supplies. Debited Investments $3,000 Credited Cash $3,000 (e) July 30, 20XX—Paid Oregon Sporting Goods $5,000 for additional recreational equipment. Debited Expense $ 5,000 Credited Cash $5,000 (f) December 31, 20XX—Received fees from parents in the amount of $40,000. Debited Cash $40,000 Credited Revenue $40,000 (g) December 31, 20XX—To account for $1,750 in fees from parents earned in the first...
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...Internship Report On NGO Accounting Practices in Bangladesh-A Case Study on BRAC Submitted to: Dr. Mahfuzul Hoque Professor Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka Submitted by: Syeda Marzana Farha Roll No-11097 M.B.A. 11th batch Department of Accounting & Information Systems [pic] University of Dhaka CHAPTER 1 Introduction 1.1 Background The internship program is a pre-requisite for the MBA degree from the Faculty of Business Administration, University of Dhaka. In today’s world, education is the imperative tool for understand the real world and apply knowledge for betterment of the society as well as in Business Sector. From the education session the theoretical knowledge is obtained from various courses throughout the programs, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of modern business Graduates to get 12 weeks practical experience, that is Internship Program. Internship program brings student closer to the real life situation and thereby helps to launch a career with some prior experience. Internship is a step towards fulfilling this commitment by giving students an opportunity to get ready for the real world before they enter their practical...
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...on a cash or modified cash basis. 4. Neither the GASB nor the FASB sets standards for budgetary accounting. 5. State and local governments must prepare their GAAP budgetary comparisons on the modified accrual basis of accounting. 6. When budgets are integrated into a government’s accounting system, estimated revenues are debited. 7. Encumbrances and expenditures both reduce total fund balances of state and local governments. 8. Not-for-profit budgets focus first on revenues and secondarily on expenditures. 9. State and local governments’ budget-to-actual comparisons present both original and final budget amounts. 10. Cash-basis budgets help governments focus on interperiod equity. 11. Reserve for encumbrances accounts should be closed at year-end. 12. Capital budgets concentrate on long-lived assets Chapter 12 1. FASB Statement No. 117 directs that revenues and expenses be reported in a statement of financial position. 2. In the statement of activities, FASB Statement No. 117 requires revenues to be reported as increases in one of the three categories of net assets, depending on donor-imposed restrictions; however, all expenses should be reported as decreases in unrestricted net assets. 3. Restricted contributions may be reported as unrestricted if the restriction has been met in the same period as the contribution is made. 4. FASB Statement No. 95 requires not-for-profits to use the direct method in their statements of cash flows...
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...AUDITING PROFESSIONAL 1 EXAMINATION - AUGUST 2011 NOTES: Section A - You are required to answer Questions 1, 2 and 3. Section B - You are required to answer any two out of Questions 4, 5, 6 and 7. (If you provide answers to more than two questions in this section, you must draw a clearly distinguishable line through the answer(s) not to be marked. Otherwise, only the first answers to hand for these four questions will be marked.) TIME ALLOWED: 3 hours, plus 10 minutes to read the paper. INSTRUCTIONS: During the reading time you may write notes on the examination paper but you may not commence writing in your answer book. Marks for each question are shown. The pass mark required is 50% in total over the whole paper. Start your answer to each question on a new page. You are reminded that candidates are expected to pay particular attention to their communication skills and care must be taken regarding the format and literacy of the solutions. The marking system will take into account the content of your answers and the extent to which answers are supported with relevant legislation, case law or examples, where appropriate. List on the cover of each answer booklet, in the space provided, the number of each question(s) attempted. The Institute of Certified Public Accountants in Ireland, 17 Harcourt Street, Dublin 2. THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IN IRELAND AUDITING PROFESSIONAL 1 EXAMINATION - APRIL 2011 Time Allowed: 3 hours, plus 10 minutes to read the paper...
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...Public Practice Audit Case [BC2] Marker’s Comment Sheet/Deficiency List Assignment 5 – Task 10 The purpose of the Comment Sheet/Deficiency List is not to provide answers but to provide guidance on areas for improvement, and to encourage students to review sections where more work was needed to complete the audit file correctly. Marks breakdown for Assignment 5, Task 10 – Complete the audit a) Correct amortization adjustment (with supporting schedule) 3 b) Correct FIT adjustment (with supporting schedule 3 c) Completion of subsequent events section of working papers 2 d) Completion of W/P 15-1 and determination of final materiality 1 e) Correct completion of W/P 15-3 (with appropriate cross references) 3 f) Correct audit conclusions on W/P 15-4 1 g) Completion of requirements re client rep letter and management letter 3 h) All journal entries documented and posted correctly 4 i) Quality control review properly completed 2 j) Financial statement disclosure checklist properly completed 2 k) Audit report meets all requirements 3 l) Financial statements proper meet all requirements, including references to notes 4 m) Notes are complete, accurate, and properly worded 4 Total 35 Professional Standards Errors in any of the key items (k), (l), or (m) (considered as professional standards) can result in failure regardless of the performance on the rest of the tasks. Task 10 – Complete the audit a) Correct...
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...of control plans is particular to a specific process or subsystem, rather than related to the timing of its occurrence? Question 4 (CGIC-0032) Which of the following is true about the Sarbanes-Oxley requirements regarding the audit committee financial expert? Question 5 (CGIC-0026) Which of the following is not a component of COSO’s enterprise risk management framework? Question 6 (CGIC-0010) Which of the following is not required by the Sarbanes-Oxley Act of 2002? Question 7 (CGIC-0025) Which of the following is not an advantage of the employment of an enterprise risk management (ERM) system? Question 8 (CGIC-0008) A financial statement audit performed under the requirements of the Sarbanes-Oxley Act of 2002 must include an examination and report upon Question 9 (CGIC-0024) An important benefit of an enterprise risk management system is Question 10 (CGIC-0023) Which of the following bodies has developed a framework for enterprise risk management? Question 11 (CGIC-0005) Which of the following executives of an issuer corporation must certify to the accuracy and truthfulness of financial reports filed with the SEC? Question 12 (CGIC-0004) Which of the following is not a responsibility that should be assigned to the audit committee of the board of directors?...
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...SOLUTIONS TO INTERNET ASSIGNMENTS Chapter 1 1. There are numerous Internet sites that contain accounting information. Following are some suggested sites: • The CICA's website (www.cica.ca) contains extensive information on the organization's activities. For example, it contains the entire report of the Special Committee on Assurance Services and a listing of the current status of all outstanding exposure drafts. • The Rutger's Accounting Web's Accounting Resources on the Internet (www.rutgers..edu/Accounting/raw/) contains numerous links, including professional organizations, accounting journals, and education sites. • The Association of Certified Fraud Examiners (www.acfe.org) website contains extensive information on the Association’s certification as Certified Fraud Examiners (CFE). • The Institute of Internal Auditors (www.theiia.org) website contains detailed information on internal auditing. • The International Federation of Accountants (www.ifac.org) website provides detailed information on international accounting and auditing standards. • The SEC’s Edgar Web site (www.sec.gov) contains all filings by public companies with the SEC. It also contains information on other activities by the SEC. • The major public accounting firms and many smaller firms also maintain good informative websites. 2. The Special Committee on Assurance Services proposed a number of assurance services that offer significant opportunities for increased revenues for auditors...
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...Contrast Coca-Cola vs. PepsiCo Financial Analysis Income Statement vs Cash Flow Accounts with greatest difference Evaluation of Fiscal Period Profitability Liquidity Leverage Financial Reporting Practices Methods for Accounting Coca-Cola Pepsi Company Disclosures Compare & Contrast Clarity & Completeness Critical Analysis Decision Investment Equity Investor Coca-Cola Company verses PepsiCo Critical Analysis of Investment The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations. Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41) PepsiCo 2010 2009 2008 * Income on Equity Investment $(916) $(235) $(202) * Change in Accounts Receivable (268) 188...
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........................5 Conclusion/ Recommendations…………………………………….………9 Issues 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie’s financial statements that suggested the firm possess a higher-than-normal level of audit risk. 2. Identify specific audit procedures that might have led to the detection of the following accounting irregularities perpetrated by Crazy Eddie personnel: (a) the falsification of inventory count sheets, (b) the bogus debit memos for accounts payable, (c) the recording of transshipping transactions as retail sales, and (d) the inclusion of consigned merchandise in year-end inventory. 3. The retail consumer electronics industry was undergoing rapid and dramatic changes during 1980s. Discuss how changes in an audit client’s industry should affect audit planning decisions. Relate this discussion to Crazy Eddie. 4. Explain what is implied by the term lowballing in an audit context. How can this practice potentially affect the quality of independent audit services? 5. Assume that you were a member of Crazy Eddie audit team in 1986. You were assigned to test the client’s year year-end inventory cutoff procedures. You selected 30 invoices entered in the accounting records near year-end: 15 in the few days prior to the client’s fiscal year-end and 15 in the first few days of the New Year. (A.) What if the that client personnel were unable to locate...
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