...Course Name: Advanced External Auditing (AU2) Assignment: 1 Modules: 1 and 2 General Comments If you have any comments or suggestions for improvements of these marker’s comment sheets, please forward them to your marker or CGA-BC. Your feedback is important to us. PLEASE NOTE FOR SUBSEQUENT ASSIGNMENTS AND EXAM PURPOSES When answering assignment (and examination) questions, students should carefully read the requirements of the question. Marks are awarded for each valid point included in your answer. The specific terminology of the question is important. If the question asks for items to be “listed”, it is sufficient to list the items without explanation or elaboration. If, on the other hand, the question requires that items be described, a mere listing will not result in full marks being awarded. In general, marks are awarded for each valid point made and you should be guided by both the wording of the question and the number of marks available in deciding how many points are required and how much detail is needed. To receive full marks, it is necessary to provide enough detail (as required by the question) about sufficient points (as determined from the number of marks available). In answering an assignment question, review the lesson notes and required readings carefully and attempt to include as many valid points as possible in your solution. Advanced External Auditing (AU2) is the second course in external auditing and other assurance and related...
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...MIT765801 AUDITING Individual Assignment HIH Insurance Report Student Name: Jinyun Wang Student ID: MIT122634 Lecturer Name: Susan Currie Tutor Name: Susan Currie Due Date: 29 / 1 / 2014 Submitted date: 7/ 2/ 2014 by email Executive Summary The auditing profession plays a significant role in industrialized economies for many years. In the insurance industry, the manner of auditing profession is regulated. The collapse of Health International Holdings (HIH) was recorded as the biggest corporate collapse in the history of Australia. Also an investigation of Royal Commission was warranted by the HIH collapse. Two questions considered in the failures of HIH Insurance: Did the auditors implement their responsibilities and roles? Did the auditors fulfil their auditing work ethically? This report provides an analysis of auditing issues arising from the collapse of HIH Insurance. Among factors that have gave rise to the corporate failure of HIH Insurance, that of the ethics of auditing profession, roles of auditors and effectiveness of audit committee have regarded as particular significance. Contents Executive Summary 2 1. Introduction 4 2. Discussion 5 2.1 Audit Independence 5 2.2 Audit Committee 7 2.3 Ethical Considerations 8 3. Conclusion 10 Reference List 11 1. Introduction HIH Insurance was established when MW Payne Liability Agencies Pty Ltd was incorporated by Michael Payne and Ray Williams joining together to do business of insurance underwriter...
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...THE IMPACT OF INTERNAL AUDIT ROLE ON RISK MANAGEMENT IN UAE PHD proposal Presented to (Dr Puah Chin Hong) Faculty of Economics and Business University of Malaysia Sarawak Presented By Muhammad Usman Research Proposal for PHD Admission: Presented By Muhammad Usman Page 1 TABLE OF CONTENTS 1.0 2.0 INTRODUCTION BACKGROUND 2.1 2.2 2.3 2.4 3.0 4.0 A brief history of internal auditing The role of the internal auditor Role of the risk management function The internal auditor and the risk management process PROBLEM STATEMENT RESEARCH OBJECTIVES 4.1 Specific Research Questions 5.0 6.0 7.0 8.0 9.0 IMPORTANCE OF STUDY SCOPE OF STUDY RESEARCH DESIGN THE LITERATURE REVIEW DATA COLLECTION & SAMPLING 9.1 9.2 Survey by questionnaire and interviews Sample selection 10.0 11.0 DATA ANALYSIS REFERENCES Research Proposal for PHD Admission: Presented By Muhammad Usman Page 2 1.0 INTRODUCTION The audit function has been performed at least since the fifteenth century. However internal auditing has developed most rapidly throughout the twentieth century as a core tool of risk assessment. Today, in businesses worldwide, the internal audit function is becoming very important for achieving the objectives of organizations. In recent years, UAE market has recognized the importance of the internal audit function, which is why that function has been established in some public as well as private companies. These companies setup audit functions to deal with the assessment...
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...To: | Executive Committee Members and Harold C. McBride | From: | Andrew M. Fisher, Senior Planning & Development Manager | Date: | March 15, 2010 | Subject: | Internal Audit Discovers $2.3 Million Error in Prior Cost Estimate Report | Earlier this afternoon, our internal auditing department completed their quarterly examination of my division and notified me of a significant, material error that was discovered in the amount of $2.3 million. This multi-million dollar inaccuracy was found during the inspection of financial documents related to the “East Lawn Office Expansion and Renovation Project.” According to preliminary reports obtained directly from the internal auditors, the $2,300,000 error was found on a previously released cost estimate report related to this project. This error will cause the “East Lawn Office Expansion and Renovation Project” to be over budget by $2.3 million and this material error will significantly impact the future of the “East Lawn Office Expansion and Renovation Project” and will also negatively influence the multitude of related projects, initiatives and programs that operate in close proximity to the “East Lawn Office Expansion and Renovation Project.” This “East Lawn Office Expansion and Renovation Project” is an aggressive initiative that falls under the direct control and supervision of the Google Excellence in Internal Operations Team (GEIOT). This team of seasoned industry professionals is composed of talented individuals from...
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...Question: Why is it important for external auditors to be independent? Relate your answer to the primary role of external auditors. Give examples of specific ways the lack of auditor independence may impact adversely on an audit. Auditing can be defined as the systematic process of obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. An external auditor performs independent, third-party reviews all the financial records of a company or corporation. He evaluates all accounting, payroll and purchasing records, as well as any documents related to investments, stocks or loans. His job is to provide an accurate, unbiased analysis of the company’s financial condition. Its objective is to determine, among other things, whether the accounting records are accurate and complete, prepared in accordance with the provisions of GAAP, and the statements prepared from the accounts present fairly the organization's financial position, and the results of its financial operations. Internal auditing is also done and an internal auditor is appointed by the firm. His functions are more towards the firm as he is appointed by it. He looks into the strategies and goals of the firm and assesses them to near perfection. He provides helpful advices and reports on the firm’s growth. But the role of an external auditor is a...
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...Adelphia Communications Corporation was a cable company, whose owners, John Rigas and his son Timothy,” were charged with bank fraud, securities fraud, and conspiracy.” (Reference #4) They were charged with all fifteen accounts of securities fraud. Another son of his was acquitted, as well as the former treasurer, Michael Mulcahey. “John and Timothy now face 30 years in prison because of the bank fraud charge.” (Reference #4) “They were charged with hiding over $2.3 billion dollars’ worth of debt in the company,” (Reference #4) as well as stealing from there investors. John became so greedy with the money he was taking, that his son became worried about it and tried to limit him to only taking out one million a month. The prosecution had two witnesses that they used in order to bring down the Rigas’, and they were Adelphia executives, James Brown and Karen Crosniak. They testified and tried to say that they weren’t aware of what they were doing, but ignorance of the law doesn’t mean you can get away with what you do. The effects of what they did have impacted the company so much that they had to move to a new location, and they operate under bankruptcy protection. There are many ethical issues that pertain to this issue, as well as many laws that were broken. First, what some call “creative accounting”, this is when a company tries to do something with their accounting reports to make the company look very profitable so that they can attract new investors. This is...
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...communication of relevant and reliable financial data that will be useful for decision making. Accounting methods involve identifying the events and transactions that affect the entity. Once identified, these items are measured, recorded, classified, and summarized in the accounting records and reported in accordance with generally accepted accounting principles (GAAP). The accounting process is carried out by an entity's employees, and ultimate responsibility for the financial statements lies with the entity's management. The primary objective of an audit is to add credibility to management's financial statements. The typical audit performed in accordance with generally accepted auditing standards (GAAS) involves obtaining and evaluating evidence concerning management's financial statements. Auditing culminates in the issuance of an audit report that contains the auditor's opinion on whether the financial statements do in fact present fairly the entity's financial position, results of operations, and cash flows in conformity with GAAP. The auditor is responsible for forming and expressing an opinion on the entity’s financial statements. 2.2 Verifiability is primarily concerned with the availability of evidence. In an audit the auditor needs to obtain evidence to support conclusions about the fair presentation of financial position, results of operations, and cash flows. However, financial statements contain elements, such as an allowance for doubtful accounts, which may not...
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...MAINTENANCE MANAGEMENT DIPLOMA AND BACHELOR OF TECHNOLOGY DEGREE Asset Management Auditing, Benchmarking and Measures South African Breweries Limited THE SOUTH AFRICAN BREWERIES BEER DIVISION Asset Management Auditing, Benchmarking and Measures TABLE OF CONTENTS Course Map 1. General Information 2. Outcomes of this module 3. Study Material 4. Assignments 5. Guidelines to answering questions 6. The examination 7. Support for this module 3 4 5 6 7 8 9 9 2 Copyright 2011 The South African Breweries - LTD THE SOUTH AFRICAN BREWERIES BEER DIVISION Asset Management Auditing, Benchmarking and Measures COURSE MAP FOR DIPLOMA IN MAINTENANCE MANAGEMENT MODULE ONE MAINTENANCE THEORY MODULE TWO OPERATIONS MANAGEMENT MODULE THREE LEGAL COMPLIANCE MODULE FOUR ORG BEHAVIOUR – CHANGE MGT MODULE FIVE BENCHMARKING, AUDITING AND MEASURES MODULE SIX FINANCIAL MANAGEMENT MODULE SEVEN PLANNING & LOGISTICS MODULE EIGHT HUMAN RESOURCE MANAGEMENT MODULE NINE REPAIR & REPLACEMENT THEORY MODULE TEN CONDITION MONITORING 3 Copyright 2011 The South African Breweries - LTD THE SOUTH AFRICAN BREWERIES BEER DIVISION Asset Management Auditing, Benchmarking and Measures STUDENT GUIDE Asset Management Auditing, Benchmarking and Measures Module 1. GENERAL INFORMATION Welcome to the South African Breweries Maintenance Management Diploma and Bachelor’s Degree Course and specifically as a student in Maintenance Theory. We hope that you will find...
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...PERSPECTIVE) Submitted To: Tahmina Ahmed Lecturer Department Of Accounting And Information Systems University Of Dhaka. Submitted By: Group No. 02 ID 18003 18051 18053 18073 18089 18200 NAME Safiqur Rahman Mahadin Anik Mahmudul Islam Arnab Kumar Chakrabartty Abdullah Al Noman Namrata Chakma Date of Submission: November 11, 2014. 1|Page This Report Includes The Following Contents Chapter No. Contents Page No. 01.Introduction 1.1 1.2 1.3 1.4 Introduction. Scope of the report. Objective of the report. Limitations of the report. What is corporate fraud? Kinds of corporate frauds. Reasons for corporate fraud. Auditor’s role. Bangladesh perspective. Findings of the study. 03 03 03 04 04 05 05 06 09 10 02.Literature Review 2.1 2.2 2.3 2.4 2.5 03.Findings Of The Study 3.1 04.Conclusion & Recommendations 4.1 4.2 Conclusion. Recommendations. 12 13 05. References. 5.1 References. 14 2|Page CHAPTER 1 INTRODUCTION 1.1 WHAT IS CORPORATE FRAUD AND WHAT WE ARE GOING TO DO THROUGHOUT THE WHOLE REPORT? The term ‘Fraud’ essentially includes the use of deception to make some personal gains for oneself dishonestly obviously and create some losses for another within the organization or outside the organization. Although definitions of corporate fraud vary in different situations, most of them are based on these general themes. The term ‘Corporate Fraud’ usually includes activities such as corruption, misuse of accounts, payroll fraud, embezzlement, theft, conspiracy, money...
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...ATTACHMENT A: GENERIC TRAINING PLAN EY Zimbabwe – 2013 Instructions for completion · This is a generic training plan for ONE hypothetical trainee · All applicants must complete all the sections TRAINING PLAN Elective: Auditing & Assurance Residuals: Taxation Management Decision-Making & Control Financial Management Internal Audit, Risk Management and Governance COMPULSORY SKILLS BUSINESS ETHICS Mode through which competence will be achieved (i.e. practical experience/ simulation Competency to be achieved BE(C) Acts ethically and in accordance with the rules of professional conduct Tasks to be performed BE(C)1 Displays honesty and integrity BE(C)2 BE(C)3 BE(C)4 BE(C)5 BE(C)6 BE(C)7 BE(C)8 Carries out work with a desire to exercise due care Maintains objectivity and independence Avoids conflict of interest Protects the confidentiality of information Maintains and enhances the profession’s reputation Adheres to the rules of professional conduct, including the ICAZ Code of Professional Conduct Identifies and adequately responds to potential ethical dilemmas Examples of activities to be performed by trainees to gain exposure to this competence E&Y Firm values – Our shared values inspire our people worldwide and guide them to do the right thing, and our commitment to quality is embedded in who we are and in everything we do. Our values define who we are · · · People who demonstrate integrity, respect and teaming People with energy, enthusiasm and the courage to lead People who...
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...BRA (business risk audit) methodologies and the growing importance of IS audit. Keywords: Financial Audit Methodologies, Business Risk Audit, Information Systems Audit, Internal Controls Framework 1 Introduction The objective of this article is to provide a better understanding of the relation between financial audit and information systems audit and to assess the influence the change in financial audit methodologies had on IS audit. In order to achieve our objective, we reviewed existing research from both academics and professionals regarding financial and information systems audit methodologies. We also obtained and reviewed materials from leading professional organizations in financial and information systems auditing, such as the International Auditing and Assurance Standards Board (IAASB), the American Institute of Certified Public Accountants (AICPA), the Information Systems Audit and Control Association (ISACA) and the IT Governance Institute (ITGI). According to [1], the purpose of a financial audit is to...
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... 2. Understand drivers for audit regulation. 3. Understand the role of public oversight. 4. Distinguish between different audit firms. 5. Identify some current developments in the audit market. 6. Portray the series of industry codes of conduct and guidance 2.2 Introduction The emergence of today’s auditors happened during the Industrial Revolution that started in Great Britain around 1780. This revolution led to the emergence of large industrial companies with complex bureaucratic structures and, gradually, the need to look for external funds in order to finance further expansion: the separation between capital provision and management. Both developments resulted in demand for the services of specialists in bookkeeping and in auditing internal and external financial representations. The institutionalization of the audit profession was then merely a matter of time. Management Controls Operations and Communications Management has control over the accounting systems and internal controls of the enterprises that auditors audit. Management is not only responsible for the financial and internal control reports to investors, but also has the authority to determine the precise nature of the representations that go into those reports. However, management can scarcely be expected to take an impartial view of this process. Communications to Stakeholders – the Financial Statements The financial statements measure the financial and non-financial performance and financial...
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...Table of Contents 1.0 Introduction 1 2.0 Discussions 3 2.1 Leadership and Culture 5 2.2 Internal Control 8 2.3 Internal Audit 13 2.4 External Audit 16 2.5 Board of Director (BOD) 19 3.0 Conclusion 21 4.0 Biliography 22 1.0 Introduction WorldCom is a profit organization that specialized in local, long distance and international plans, high cable internet, prepaid cards, and provided telecommunications to customers nationwide with business corporations making up the majority of the 20 million customers they served. LDDS began operations in 1984 offering services to local retail and commercial customers in the southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the company profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially came to be known as WorldCom. WorldCom primary business goal was to achieve long term revenue-growth by maintaining the achievement of E/R ratio. However, the industry began to deteriorate in 2000 due to economic recession and other reasons, such as overcapacity and heightened competition. Despite the falling in revenue, the management of WorldCom tend to manipulate the accounting entries by accrual releases and capitalization of line cost in order to achieve the targeted performance. The scheme lowered line costs (the company’s largest single...
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...that there was not enough regulation over financial statements of publically traded companies specifically. It focused specifically on publically traded companies to contain the fallout of lost investor’s money when these frauds come to light and the stock prices plummet. In order to fix these problems Congress rushed the Sarbanes-Oxley Act through both the House and Senate. This Act was one of the largest pieces of financial information legislation since the securities acts of 1933 and 1934 (Sweeney 2012). The Sarbanes-Oxley Act has faced quite a lot of criticism, but it has been quite successful. SOX legislation has for most come at rather high regulatory costs. The average annual compliance costs were $2.9 million prior to 2007 and $2.3 million since then (Singer & You 2011, pg 557). While it’s completely understandable why that large of a bill would draw criticism, SOX has been incredibly successful at preventing large-scale cases of fraud like Enron from recurring. It also worked to restore consumer confidence in American markets and to make those consumers feel like they can trust earnings announcements for publically traded companies once again. Sarbanes-Oxley is an extremely extensive piece of legislation. It created a lot of new...
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...Report on Corporate Frauds & the Role of the auditors: Bangladesh Perspective Faculty of Business Studies University of Dhaka SUBMITTED TO Tahmina Ahmed Lecturer Accounting & Information Systems University of Dhaka SUBMITTED BY Group 18 Date of submission:10.11.14 Group members Name | ID | 1.Sajjad Hossain Sohan | 18022 | 2.Rubina Akther | 18048 | 3.Mohammad Saadman | 18052 | 4.Rumi Akther | 18066 | 5.Hilary Talukder | 18099 | November 5, 2014 Tahmina Ahmed Lecturer Dept. of Accounting & Information Systems University of Dhaka Subject: Submission of report on “Corporate fraud & the role of the auditor: Bangladesh Perspective” Dear Sir, We are honored and pleased to inform you that as per the requirements, we worked on the issue of the preparation of a report based on the corporate frauds & the role of the auditor in Bangladesh perspective. To fulfill the report objective, we analyzed & reviewed some of the secondary information available on the internet related to the topic.. Based on our classroom knowledge on the related issues, we tried to make the report as specific and unique as possible. We humbly submit this report for your review and feedback. Preparation of this report demanded a minimum level of working knowledge of the process of audit & assurance . We also tried to follow your instructions properly now and when necessary. We would like to request you to allow us to submit...
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