...It is believed that the GFC of 2007 was the worst financial crisis of recent times. The US market plunged right into the recessionary periods and large multi-national companies struggled to keep up with the market conditions. Also known as, the burst of the financial bubble, governments realized the lack of regulations to control the market. These regulations related to accounting policies, auditing policies and more stringent rules as responses to major corporate collapses and upheavals in the financial sector. The introduction of Sarbanes-Oxley Act (SOX) of 2002 and Corporate Law Economic Reform Program (CLERP) 9 resulted from the shortfalls of the existing regulations prior to 2001. The objective of this paper is to define auditors and GFC. In addition, this paper will look at the how the auditor liability increased because of the GFC. There will also be consideration of any additional issues that may exist in the Pacific as to...
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...Salman Budhwani: Keller CPA Independent Audit Report Smackey Dog Foods, Inc We have accepted the client and have started performing the audit on Smacky Dog Food. We have done our research over the company and the industry as a whole. We are aware that Smacky Dog Food is a small wholesale distributer of perishable dog food. Currently the company has a loan of $150,000 and is asking for another $150,000 to expand their business. The bank assumes the $150,000 risk and our client has the obligation to pay down their debt. Keller CPA will perform the necessary analytical procedures to better understand the financial strength of the company. Our preliminary judgment about Smacky Dog Food’s materiality is negative in respect to their Reliability of financial reporting: Management is responsible for preparing statements for inventors, creditors and other users. Income statements, balance sheet, and cash flow statements are not provided by management. We have conducted the audit in accordance with Generally Accepted Accounting Standards. By following these standards we will perform this audit so it will be free of material misstatements. An audit includes understanding the clients business and industry, assessing client business risk, performing analytical procedures, set materiality and assess acceptable audit risk and inherent risk, understanding internal control and assess internal control risk, and finally gather information to assess fraud risk. We will review all...
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...Mandatory Auditor Rotation Policy Through the course of an audit, auditors are constantly faced with pressure from the client regarding financial reporting and other issues that may arise. Clients can threaten to terminate the auditor, resulting in lost fees and tarnished reputations as the firm tries to pursue future clients. In these cases, partner evaluations can be negatively affected since they are judged based on hours billed and the number of clients they are able to secure. Mandatory auditor rotation is defined as the obligation to limit the number of years during which the accounting firm may be the auditor of record for a client. The Public Company Accounting Oversight Board (PCAOB) is a strong advocate in favor of mandatory auditor rotation, while a majority of accounting firms are opposed to the idea. Problems are more likely to develop in the initial years of the audit relationship (fraud and bankruptcy) when the auditor tries to gain as much knowledge as possible about the client. According to an American Institute of Certified Public Accountants (AICPA) study (Church and Zhang 2006, page 3), audit failures are three times more likely to occur in the first two years of the auditor-client engagement. Auditor rotations have never been mandated in the United States, and I believe this should continue in the future due to the high costs and decreased auditor effectiveness that would result from continual changes in the auditor-client relationships. There...
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...Internal Audit – IT Audit Intern We are a specialty retailer offering the very best of what’s next in fashion for men, women and children since 1901. JOIN US WHERE IT ALL BEGAN. Whether you design clothes or business strategies, crunch numbers, lead projects or write code, we have a place for you at our Seattle headquarters. And we think Seattle is a pretty great place to live. More than just rainy days and coffee, Seattle has it all — mountains and beaches, arts and parks, music and film. It's made up of quirky neighborhoods, award-winning restaurants, and thriving industry. Come see for yourself! A day in the life… The ideal internal audit principal is motivated, results-oriented and committed to providing outstanding customer service every day. Responsibilities * Assist the lead auditor with documenting and testing various IT General, Security, Operational and Change Management Controls for Sarbanes-Oxley compliance. * Identify, develop, and document detailed audit observations and recommendations for improvement using independent judgment concerning the control being reviewed * Communicate with control owners across the IT groups to accomplish testing You own this if you have… * Current graduate student or Bachelor of an accredited degree program with concentration in Accounting and/or Management Information Systems/ Information Security * Working knowledge or course work covering the proper application of internal auditing, accounting...
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...EVALUATION OF RESEARCH PAPER Title: When Bonding Fails: Audit Firm Oversight of US-Listed Chinese Companies Date: 15/11/23 Author: Joseph V. Carcello, Brian T. Carver, Clive S. Lennox, Terry L. Neal A. Describe the research problem or question. Evaluate the importance of the research question to audit practice. First, this paper composed by Joseph V. Carcello et al describes the traditional bonding argument failed for US-listed Chinese companies due to a lack of audit quality and audit firm oversight. Last, we think that there are two importance of what the paper relates to audit practice. One is that the study can implicate outside investors may be hit twice as a result of information asymmetry. Another is whether there are any omission or inadequate regulations need to amend due to transnational factors. B. Explain the author’s approach to solving the problem. This paper’s authors, Joseph V. Carcello et al used experimental designing and event studying to argue that the traditional bonding argument failed for US-listed Chinese companies due to a lack of audit quality and audit firm oversight. And, authors do provide descriptive evidence on the following research question: Which parties are most likely to detect financial reporting fraud and other accounting improprieties among the US-listed Chinese companies?(RQ1) because they didn’t test it. C. Describe the major findings of the research. The result of this paper find two points. One...
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...Background and Description of Major Issues Target actually began as Dayton Dry Goods, a department store - focus on high quality feel at lower prices - Customers have a more pleasurable shopping experience • However, many customers are willing to forgo aesthetics for lower costs in tough economic times. o Because Target is following a “Cost Leadership” strategy, it is important to play the game, because the target market will not respond to largely excessively higher costs in the name of differentiation. • Additionally, it is important to make sure that an efficient supply chain is maintained and that inventory is turned over as quickly as possible. Target’s gross margin is higher than the industry average and Wal-Mart’s, which implies that Target is relatively efficient in this area. o Wal-Mart’s large amount of stores, both within the United States and internationally, help the low-cost retailer bring in revenues. ▪ Target could improve by stepping up against this strategy. • As the world becomes more inter-connected, Target needs to stay on board o For example, the potential revenues gained by reaching foreign markets can be seen as an opportunity. ▪ However, PEST analysis shows that this can also pose problems: • U.S. Export Tariff on Chinese goods • Risk of instability in other countries o Both politically...
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...Case 2-1 1. (a) What are management’s responsibilities pertaining to the independent audit? In accordance with AU 110, management’s responsibilities pertaining to an independent audit include the financial statements and their presentation. This entails not only the accounting policies used but also conforming to GAAP. Management sets the guidelines for the accounting process from how the transactions are recorded and processed to the internal controls implemented to protect the company. It is also management’s responsibility to have direct knowledge and control of the transactions. (AU 110.03) (b) What are the auditor’s responsibilities pertaining to the independent audit? The responsibility of the auditor in an independent audit is to plan and perform an audit in order to be able and offer an opinion about the company’s financial statements and whether they were presented fairly in accordance with GAAP. Another responsibility of the auditor is to provide reasonable assurance to stockholders and creditors pertaining to the credibility of the client’s financial statements and that they are free of material misstatements. The auditor must have sufficient evidence to back up his findings. (AU 110.02) 2. Assume you have a meeting tomorrow with Stephen F. Lamar. List the top three issues, in order of importance, that you will discuss with him, and briefly describe why you believe each issue is important. If I were meeting with Stephen F. Lamar tomorrow I would...
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...Policy Research Institute, Ministry of Finance, Japan, Public Policy Review, Vol.8, No.1, June 2012 45 Public Sector Accounting - An Interdisciplinary Field Involving Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between...
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...focuses on five offices of an international public accounting firm that recently made large IT investments, primarily in audit software and knowledge-sharing applications. Both qualitative and quantitative information from the research site are analyzed to estimate the change in productivity following the implementation of IT. The results from both regression analysis and Data Envelopment Analysis (DEA) indicate significant productivity gains following IT implementation, documenting the value impact of IT in a public accounting firm. Keywords: public accounting; information technology (IT); IT productivity; IT adoption; data envelopment analysis. Data Availability: The confidentiality agreement with the firm that provided the data for this study precludes revealing its identity and disseminating detailed data without its written consent. I. INTRODUCTION dvances in information technology (IT) have transformed many firms in professional services industries, but perhaps none as much as those in the public accounting industry. Once a slowpaced and conservative industry, public accounting underwent tremendous changes at the turn of the millennium, sparked largely by the rapid changes in its IT environment (Elliott 2000). Audit software and knowledge-sharing applications are two crucial components of these changes. Automation of audit tasks and use of specialized audit software has...
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...been Enronaa’s auditor for the past 16 years. On the morning of October 23, David and his auditing team listened in on a call between stock analysts and Enronaa’s executives, who were trying to explain the company’s financial free fall. There were too many unanswered questions. After lunch, David called the entire Enronaa team together in Conference Room 37C1. His heart beat faster as he thought about the net that was closing in on Androids. As his eyes wandered around the room, on one of the conference room walls was an imposing picture of Arthur Androids. David was particularly proud of the long and distinguished history of the firm. His mind wandered as if to witness how in 1913, Arthur and Clarence, both from the audit firm of Price, bought out a small audit firm in Illinois to form Arthur, Clarence & Co., which became Androids & Co. in 1918. Androids, who headed the firm until his death in 1945, was a zealous supporter of high standards in the accounting industry. A stickler for honesty, he argued that accountants’ responsibility was to investors, not their clients’ management. During the early years, it was reputed that Androids was approached by an executive from a local rail utility to sign off on accounts containing flawed accounting, or else face the loss of a major client. Androids refused in no uncertain terms, replying that he would not sign the accounts “for all the money in America”. Leonardo Sparky, who succeeded Androids at the...
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...many unanswered questions. After lunch, David called the entire Enronaa team together in Conference Room 37C1. His heart beat faster as he thought about the net that was closing in onAndroids. As his eyes wandered around the room, on one of the conference room my team had been st i,enored. In fact, a calls were stunned b David's explanation and conference calls r called LJM2, Tom v similar troubles, ant people listening in." ally knew for certai Enronaa, he was the rd ffi i* (;/l walls was an imposing picture of Arthur Androids. David was particularly proud of the long and distinguished history of the firm. His mind wandered as if to witness how in 1913, Arthur and Clarence, both from the audit firm of Price, bought out a small audit firm in Illinois to form Arthur, Clarence & Co which becameAndroids & Co. in 1918. Androids, who headed the firm until his death in 1945, was a zealous supporter of high standards in the accounting industry. A stickler for honesty, he argued that accountants' responsibility was to investors, not their clients' management. During the early years, it was reputed that Androids was...
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...study focuses on five offices of an international public accounting firm that recently made large IT investments, primarily in audit software and knowledge-sharing applications. Both qualitative and quantitative information from the research site are analyzed to estimate the change in productivity following the implementation of IT. The results from both regression analysis and Data Envelopment Analysis (DEA) indicate significant productivity gains following IT implementation, documenting the value impact of IT in a public accounting firm. Keywords: public accounting; information technology (IT); IT productivity; IT adoption; data envelopment analysis. Data Availability: The confidentiality agreement with the firm that provided the data for this study precludes revealing its identity and disseminating detailed data without its written consent. I. INTRODUCTION dvances in information technology (IT) have transformed many firms in professional services industries, but perhaps none as much as those in the public accounting industry. Once a slowpaced and conservative industry, public accounting underwent tremendous changes at the turn of the millennium, sparked largely by the rapid changes in its IT environment (Elliott 2000). Audit software and knowledge-sharing applications are two crucial components of these changes. Automation of audit tasks and use of...
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...An illustration denoting the timeless elegance of created by Mavra Almas, 2005 Suraj Miani Sahib in Multan. Annual Report of Packages Limited 2012 Naqsh School Foundation in of 2003, Arts was established by the Babar Ali with the purpose to revive the traditional arts of miniature, naqashi (the art of arabesques) and calligraphy. Naqsh artists and students have excelled in the art of naqashi, which has been inspired from the rich historical monuments of the Packages Limited the years. We Annual Report Mughal is proud to have been a patron of Naqsh over are happy to dedicate the theme of this year’s to the revival of traditional naqashi, using some of the artworks produced by the A era. On the Naqsh School Cover Page: magnificent display of true arabesque patterns coming to life – Jahangir’s tomb Afshan Ijaz, n.d. a masterpiece inspired by created by in Lahore. of Arts. Ottoman Majesty The strikingly intricate beauty of a 16th century ceiling artwork. the mausoleum of Shah Rukn-e-Alam in Multan. A spectacularly intricate painting depicting Created 2 by Sadia Jamil, 2012 Annual Report of Packages Limited 2012 Contents 04 Company Profile 06 Company Information 08 Organogram 10 Business Divisions 21 Entity Rating Governance 22 24 26 30 31 Board of Directors Management Committees Vision, Mission...
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...VISY PULP AND PAPER PTY LTD ENVIRONMENTAL ASSESSMENT FOR A MAJOR PROJECT TUMUT MILL EXPANSION 436 Gadara Road, Tumut, New South Wales January 2007 H:\Environmental\VPP9 Stage 2\Stage 2\FINAL EA SUBMISSION\Main Report\Visy Tumut Final Env Assessment Main Report.doc Environmental Assessment Submission Under Part 3A of the Environmental Planning and Assessment Act 1979 Statement by Authors Environmental Assessment Prepared By: Name Ms Leanne Hayes Company Visy Pulp and Paper Pty Ltd Position Project Environmental Engineer Qualifications BSc Environmental Biology Address 436 Gadara Road, Tumut, New South Wales, 2720 Co-authored and Reviewed By: Name Ms Alison McRae Company Peter J Ramsay and Associates Pty Ltd Position Associate Qualifications Bachelor of Engineering (Environmental), Bachelor of Commerce Address 3/538 Gardeners Road, Alexandria, New South Wales, 2015 Project Under Part 3A: Application Number 06_0195 Development Visy Pulp and Paper Tumut, Mill Expansion Development Location 436 Gadara Road, Tumut, New South Wales, 2720 Proponent Visy Pulp and Paper Pty Ltd PO Box 98 Tumut, New South Wales, 2720 Certification: I certify that I have prepared this Environmental Assessment report and that to the best of my knowledge: it has been prepared in accordance with Part 3A of the Environmental Planning and Assessment Act and Regulations; and the information...
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...27MAR201319523653 ORCHIDS PAPER PRODUCTS COMPANY 2013 ANNUAL REPORT To Stockholders Dear Stockholders, In 2013, Orchids Paper Products Company experienced record converted product net sales and total net sales levels for the second consecutive year. We continued to broaden our product offerings and experienced additional penetration into the mid/premium tier product markets. Net sales of converted products exceeded $100 million for the first time in the Company’s history. During 2013, we focused on continuing to increase sales of converted product to fully consume our parent roll capacity. Our efforts centered on new product development in both paper making and converting and combining those efforts with an effective sales and marketing plan. As a result, we continued to expand our converted product offerings into the mid/premium tier market, creating new sales opportunities which resulted in shipments of 8.2 million cases, or approximately 53,000 tons, an increase of 16.2% over case shipments in 2012. More specifically, during 2013, our net sales increased 15.4% to $116.4 million compared to $100.8 million in 2012. This included a 21.1% increase in converted product sales. Our sales of mid-tier and premium tier products comprised 37.9% of our unit net sales in 2013, compared to 15.0% in 2012 and 6.8% in 2011. We also focused considerable efforts on controlling production costs while improving quality attributes to supplement the high quality production capabilities of...
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