...Syllabus for ACIS 4414 Financial Statement Auditing Fall 2012 Instructor: Email: Office: Phone: Office Hours: MW 1:00pm – 2:30pm and by appointment Class time: MWF 9:05am – 9:55am; MWF 10:10am – 11:00am in PAM 2003 Course Web Site: Recommended Texts: Auditing and Assurance Services 14th edition Prentice-Hall, by Alvin A. Arens, Randal J. Elder, Mark Beasley Auditing Cases, 5th Edition, Beasley, Buckless, Glover, & Prawitt Note: Both of the above texts are published by Prentice Hall and are available as a bundled package. Prerequisites Computer Resources: Course Objectives: This course is designed to provide you with an understanding of professional auditing as practiced in the United States. Our discussions will focus on various aspects of the auditing profession. Successful completion of this course will provide you with a basic understanding of: * The auditor's consideration of financial statement cycles, * The evaluation of audit evidence, and * The issues related to completing an audit. Honor Code: Each student is expected to behave in a manner that brings honor to himself or herself, to the student body, and to the university community. In keeping with this expectation, students should be familiar with requirements of the Honor System Constitution. All class assignments are expected to be your original work. You are not permitted to use solutions manuals, solutions from prior semester materials...
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...the company, stockholders, and the surrounding community. COSO’s report showed that there has been an increase of the magnitude dollars stolen by ways of financial reporting fraud. While the amount of cases where fraud was found were similar when compared to the report published ten years ago, the amount of dollars in error has changed drastically – moving from a mean per case of $25 million to a staggering mean of $400 million. Most cases of fraud come from an overstatement of assets or overstatement of revenues. Who are the perpetrators? Fraudulent financial reporting can happen to any company at any level. The COSO study found that the median revenues and total assets were about $100 million, which is a large increase from the previous study done ten years ago, which found the median to be around $15 million. That is not to say the majority of all offenses occurred with companies in the medium range – fraudulent reporting was found in companies ranging from $400 billion in assets and revenues to startup companies with no revenue or assets. Most companies that committed fraud were either close to break-even positions or were posting net losses. The industries fraud is committed in is widespread, with companies in virtually every sector committing fraud. In 72% and 65% of cases, CEOs and CFOs were found being associated with fraud, respectively. What is happening with corporate governance? COSO’s study found differences in corporate governance between fraudulent and non-fraudulent...
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...Comprehensive Case United States Surgical Corporation 1 Running head: COMPREHENSIVE CASE U.S. SURGICAL CORPORATION Comprehensive Case United States Surgical Corporation Scott P. McHone Liberty University Comprehensive Case United States Surgical Corporation 2 Abstract During the past thirty years we have seen an increase in the number of companies that have committed some form of financial shenanigans. Some of these companies have manipulated Generally Accepted Accounting Principles to present themselves as financially sound. Others have committed fraud to achieve the same objective. With this type of corporate behavior there is an increasing need for better auditing and more reliable audited financial statements. The purpose of this paper is to read and study a comprehensive case as presented in the textbook Contemporary Auditing: Real Issues and Cases and answer the questions as listed at the end of the case study. I decided to select case 1.10 United States Surgical Corporation. Comprehensive Case United States Surgical Corporation 3 Comprehensive Case United States Surgical Corporation To fully appreciate this paper it is recommended that the case study along with the associated questions be read prior to reading this paper. Question one from the case study focuses on what audit procedures should have been performed by the auditing firm for the 1981 audit period that would help increase the possibility of detecting the overstatement of the leased and loaned assets due...
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...planning to issue new securities to the public to submit a registration statement to the SEC for approval. The Securities Exchange Act of 1934 requires public companies and others to file detailed annual reports with the commission. SEC examines these statements for completeness and adequacy before permitting the company to sell its securities through the securities exchanges. SEC requires that financial statements be accompanied by the opinion of an independent public accountant, which is a part of a registration statement and subsequent reports. Since Smackey Dog Foods, Inc. is not a public company, there is no direct influence of SEC. However, SEC’s rules establish the guidelines of GAAP and personal conduct for Smackey Dog Foods, Inc. (Auditing and Assurances Services, 13th Edition. Pearson Learning Solutions p. 30). <vbk:9781256083337#outline(6.7)> Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client? Solution: 1. The auditor decides whether to accept a new client or continue serving an existing one. This determination is typically made by an experienced auditor who is in a position to make important decisions. The auditor wants to make this decision early, before incurring any significant costs that cannot be recovered. 2. The auditor identifies why the client wants or needs an audit. This information...
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...Qualitative characteristics in accounting disclosures: a desirability trade-off Malcolm Smith Associate Professor of Accounting, School of Economics and Commerce, Murdoch University, Perth, Australia A number of studies in the USA, UK, Australia and Canada have addressed the evaluation of the usefulness of accounting information and sought to identify criteria for assessing the quality and utility of financial reports (e.g. Institute of Chartered Accountants in England and Wales (1975), Financial Accounting Standards Board (1980), Institute of Chartered Accountants in Scotland (1988), Accounting Standards Board (1991)). The qualitative characteristics viewed as desirable for the fulfilment of the fundamental objective of communicating decision-useful measurement recognize that all of these characteristics are not simultaneously achievable and that some trade-off is necessary. Examines the nature of this conflict of objectives and attempts to quantify the extent of the conflict for different user groups. Introduction Since the late 1960s research efforts regarding a conceptual framework have been commissioned in response to mounting public and professional pressure with regard to the nature of corporate reporting and deficiencies in the accounting standard setting process. Peasnell[1, p. 254] with respect to the Financial Accounting Standards Board (FASB) conceptual framework observes: “it perceives a need to show that its heart and mind are in the right place: to demonstrate...
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...INTEGRATED CASE STUDY Case 12.4: Surfer Dude Duds, Inc.: Considering the Going-Concern Assumption* *This case was prepared by Mark S. Beasley, Ph.D. and Frank A. Buckless, Ph.D. of North Carolina State University and Steven M. Glover, Ph.D. and Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. The case was inspired by discussions with Craig Isom, a former audit partner, and we gratefully acknowledge his contribution to its development. Surfer Dude Duds is a fictitious company. All characters and names represented are fictitious; any similarity to existing companies or persons is purely coincidental. Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt Learning Objectives After completing and discussing this case, you should be able to * Understand the difficulty of assessing the client’s going-concern assumption * Describe the “self-fulfilling prophecy” aspect of a going-concern modified auditor’s report * Identify factors that encourage objective auditor judgments despite the presence of friendly client-auditor relationships Background Mark glanced up at the clock on his office wall. It read 2:30 P.M. He had scheduled a 3:00 P.M. meeting with George “Hang-ten” Baldwin, chief executive officer of Surfer Dude Duds, Inc. Surfer Dude specialized in selling clothing and accessories popularized by the California “surfer” culture. Mark had served as audit partner on the Surfer Dude Duds audit for the past...
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...Computerized Accounting System Threats in Malaysian Public Services Mahlindayu binti Tarmidi1, Azwan Abdul Rashid2, Mohmad Sakarnor bin Deris3, Rusli Abdul Roni4 1Department of Accounting. College of Business Management and Accounting, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang 4Deprtment of Business and Accounting, College of Foundation and General Studies, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang [pic] Abstract Numbers of incidents pertaining data errors, system breach, violation of internal control and manipulation of financial information had raised the organization attention and concern. Organizations are consequently more aware of the security and integrity issues in regards of the computerized accounting system and the need to take appropriate action. This research is to investigate the security threats issues in computerized accounting system in Malaysian public services. Through questionnaires to 500 CAIS user in the Jabatan Akauntan Negara Malaysia (Accountant General Department), the study findings show the users perception of the current state of threats faced by the system. Though most of the listed threats are perceived to be rarely happen, but there are group of people indicates those incidents still taken place. Hence, this empirical evidence may enable the public services department to evaluate their computerized accounting system security, and begin to properly pursue effective strategies to improve quality and lower...
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...nformation Technology for Management Transforming Organizations in the Digital Economy International Student Version EFRAIM TURBAN, University of Hawaii at Manoa LINDA V O L O N I N O , Canisius College with contributions by: CAROL POLLARD, Appalachian State University . JANICE C. SIPIOR, Villanova University DOROTHY LEIDNER, Baylor University LINDA LAI, Macau Polytechnic University of China CHRISTY CHEUNG, Hong Kong Baptist University DEBORRAH CRISTOBAL, University of Santo Tomas, Philippines WILEY & Sons, Inc. CONTENTS 4 Networks and Collaboration as Business Solutions 112 I IT Supports Organizational Performance in Turbulent Business Environments 1 Toyota Scion's Innovative Advertising Strategies 2 1.1 Doing Business in the Digital Economy 4 1.2 Information Systems and Information Technology 11 1.3 Business Performance Management, Business Pressures, Organizational Responses, and IT Support 13 1.4 Strategy for Competitive Advantage and IT Support 18 1.5 Social Computing and Networking and Virtual Worlds 25 1.6 Why Should You Learn About Information Technology? 29 1.7 Plan of the Book 30 1.8 Managerial Issues 31 Minicase: NHS Hospitals Adopt Wireless 35 G Information Technologies: Concepts, Types, and IT Support 38 Mary Kay's IT Systems 39 2.1 Information Systems: Concepts and Definitions 41 2.2 Classification and Types of Information Systems 42 2.3 How IT Supports People 52 2.4 How IT Supports Supply Chains and...
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...to the 1983 breakup of AT&T. Small, regional companies could now gain acces to AT&T’s long distance handphone lines at deeply discounted rates. The companies turn to Bernard J (Bernei) Ebbers, one of its original nine investors, to run things. Ebbers had previously been employed as a milkman, bartender, bar bouncer, car salesman, truck driver, garment factory foreman, high school basketball coach, and hotelier. Eventhough he is lacked technology experience. In 1996, WorldCom entered the local service market by purchasing MFS Communications Company, Inc., for $12.4 billion. MFS’s subsidiary, UUNET, gave WorldCom a substantial international presence and a large ownership stake in the world’s Internet backbone. The figure below is the executive summary of WorldCom:- In this case, the pressure of the business condition drives the BOD of WorldCom to do unethical action. The person involve in this cases are Bernard J. (Bernie) Ebbers and Scott Sullivan. The major problem that WorldCom has face is Industry conditions began to deteriorate in 2000 due to heightened competition, overcapacity, and the reduced demand for telecommunications services at the onset of the economic recession and the aftermath of the dot-com bubble collapse. Failing telecommunications companies and new entrants were drastically reducing their prices, and WorldCom was forced to match. The competitive situation put severe pressure on WorldCom’s most important performance indicator, the E/R ratio (line-cost...
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...MS-EXCEL FOR CHARTERED ACCOUNTANTS SUNIL B GABHAWALLA CHARTERED ACCOUNTANT WESTERN INDIA REGIONAL COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA TABLE OF CONTENTS 1 2 Basics & Beyond......................................................................................................... 4 1.1 Introduction......................................................................................................... 4 1.2 The EXCEL Screen............................................................................................. 4 1.3 Moving Around................................................................................................... 5 Data Entry ................................................................................................................... 8 2.1 Text ..................................................................................................................... 8 2.2 Number (including date, time, percent) .............................................................. 8 2.3 Formulae ............................................................................................................. 8 2.4 Functions............................................................................................................. 9 2.5 AutoComplete ..................................................................................................... 9 2.6 AutoCorrect........................................................................................
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...Syllabus Certified General Accountants Association of Canada 100 – 4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 www.cga-canada.org © CGA-Canada, 2013 All rights reserved. These materials or parts thereof may not be reproduced or used in any manner without the prior written permission of the Certified General Accountants Association of Canada. Printed in Canada ISBN for an individual volume: 978-1-55219-599-4 About CGA-CANADA _________________________________________ CGA-Canada today The CGA designation focuses on integrity, ethics, and the highest education requirements. Recognized as the country’s accounting business leaders, CGAs provide strategic counsel, financial leadership, and overall direction to all sectors of the Canadian economy. The Certified General Accountants Association of Canada — CGA-Canada — sets standards, develops education programs, publishes professional materials, advocates on public policy issues, and represents CGAs nationally and internationally. The Association represents 75,000 CGAs and students in Canada, Bermuda, the Caribbean, Hong Kong, and China. Mission CGA-Canada advances the interests of its members and the public through national and international representation and the establishment of professional standards, practices, and services. A proud history CGA-Canada was founded in Montréal in 1908 under the leadership of John Leslie, vicepresident of the Canadian Pacific Railway. From the beginning, its objective...
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...Initial Public Offerings Jay R. Ritter Cordell Professor of Finance University of Florida Gainesville FL 32611-7168 (352) 846-2837 jritter@dale.cba.ufl.edu http://bear.cba.ufl.edu/ritter Warren Gorham & Lamont Handbook of Modern Finance Edited by Dennis Logue and James Seward reprinted (with modifications) in Contemporary Finance Digest Vol. 2, No. 1 (Spring 1998), pp. 5-30 This is the modified version. Abstract In the 1990s, thousands of firms have gone public around the world. This article surveys the market for initial public offerings (IPOs). The process of going public is discussed, with particular emphasis on how contractual mechanisms deal with potential conflicts of interest. The valuation of IPOs, bookbuilding, price stabilization, and the costs of going public are also discussed. Three empirical patterns are documented and analyzed: shortrun underpricing, hot issue markets, and long-run underperformance. This article is reprinted, with modifications, from the chapter with the same title in the Warren Gorham & Lamont Handbook of Modern Finance, edited by Dennis Logue and James Seward. The chapter in turn draws heavily on "The Market's Problems with the Pricing of Initial Public Offerings," coauthored by Roger G. Ibbotson, Jody Sindelar, and Jay R. Ritter in the 1994 Journal of Applied Corporate Finance; "Going Public," coauthored by Kathleen Weiss Hanley and Jay R. Ritter, in The New Palgrave Dictionary of Money and Finance; and especially “Initial Public Offerings...
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...Auditing Cases instructor resource Manual f our th e d itio n Mark S. Beasley Frank A. Buckless Steven M. Glover Douglas F. Prawitt do not coPy or redistribute Prentice hall Upper Saddle River, New Jersey ta b l e s e ct ion o f co n t e n t s 1 2 client acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . S o l u tionS inc lu de d in t h iS Section 1.1 Ocean Manufacturing, Inc. 3 The New Client Acceptance Decision s e ct ion Understanding the Client’s Business and assessing risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 S o l u tionS inc lu de d in t h iS Section 2.1 Your1040Return.com Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.2 2.3 2.4 Dell Computer Corporation Evaluation of Client Business Risk Flash Technologies, Inc. Asher Farms Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Risk Analysis and Resolution of Client Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Understanding of Client’s Business Environment s e ct ion 3 Professional and ethical issues . . . . . . . . . . . . . . . . . . . . . . . 59 S o l u tio nS inc lu de d in t h iS Section 3.1 3.2 3.3 3.4 3.5 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should...
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...Integrating ERP, CRM, Supply Chain Management, and Smart Materials Dimitris N. Chorafas AUERBACH Library of Congress Cataloging-in-Publication Data Chorafas, Dimitris N. Integrating ERP, CRM, supply chain management, and smart materials / Dimitris N. Chorafas. p. cm. Includes bibliographical references and index. ISBN 0-8493-1076-8 (alk. paper) 1. Business logistics. 2. Customer relations. I. Title. HD38.5 .C44 2001 658.5—dc21 2001022227 This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from the publisher. The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for creating new works, or for resale. Specific permission must be obtained in writing from CRC Press LLC for such copying. Direct all inquiries to CRC Press LLC, 2000 N.W. Corporate Blvd., Boca Raton, Florida 33431. Trademark Notice: Product or corporate names may be trademarks...
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...T.Y.B.Com FINANCIAL ACCOUNTING AND AUDITING PAPER - IV AUDITING AND COST ACCOUNTING © UNIVERSITY OF MUMBAI Dr. Rajan Welukar Dr . Dhaneshwar Harichandan Vice Chancellor Professor-cum-Director University of Mumbai Institute of Distance and Open Learning Fort, Mumbai-400032. University of Mumbai Programme Coordinator : Section I - Auditing Prof. R. Vijayan (Bsc. L.L.B, F.C.A) N.G. Acharya, D.K. Marathe College Chembur, Mumbai - 400 071. Prof. Kiran M. Rage (M.Com, D.F.M., F.C.A) N.G. Acharya, D.K. Marathe College Chembur, Mumbai - 400 071. Prof. B.K. Bandgar (M.Com, M. Phil, L.L.B.) Grad C.W.A., S.I.W.S.N.R. Swany, College of Commerce & Economics Wadala, Mumbai - 400 031. Prof. Sunil B. Kadam (M.Com, G..D.C.A) N.G. Acharya, D.K. Marathe College, Chembur, Mumbai - 400 71. Re-Edited by Prof. Kiran M. Rage (M.Com, D.F.M., F.C.A) N.G. Acharya, D.K. Marathe College Chembur, Mumbai - 400 071. Published by : DTP Composed by : Professor cum Director Institute of Distance and Open Learning University of Mumbai, Vidyanagari, Mumbai - 400 098. Pace Computronics "Samridhi" Paranjpe 'B' Scheme, Road No. 4., Vile Parle (E), Mumbai - 400 057. 2 CONTENTS Sr. No. Title Page No. SECTION - I (AUDITING) 1 Introduction To Auditing 01 2 Introduction To Auditing II 22 3 Audit Planning 33 4 Auditing Techniques And Internal Audit Introduction I 44 5 Internal Control 54 6 Vouching 89 7 ...
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