...ACC 491 Entire Course http://homeworkgallery.com/index.php/product/acc-491-entire-course/ http://homeworkgallery.com/index.php/product/acc-491-entire-course/ http://homeworkgallery.com/index.php/product/acc-491-entire-course/ ACC 491 Week 1 Individual Assignment Generally Accepted Auditing Standards Paper Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar. In your paper, be sure to address the following: Describe the elements of the Generally Accepted Auditing Standards (GAAS). Describe how these standards apply to financial, operational, and compliance audits. Explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded companies. Discuss the additional requirements that are placed on auditors from this Act, and the actions of the PCAOB. ACC 491 Week 1 DQs Access the SEC home page at http://www.sec.gov. What is one of the most recent litigation brought by the SEC against a public firm or against an accounting firm? Read the abstract of the complaint and download the document filed with the court. Comment on the nature of the litigation. What is one the most recent Staff Accounting Bulletin that provides guidance to the profession? What was the...
Words: 1244 - Pages: 5
...Team B Formal Communications University of Phoenix Team B Formal Communications To: Accountants From: Team B Subject: Statement on Auditing Standards (SAS) 112 and 115 Notification Changes have been made regarding the rules that must be followed by auditors. The purpose of this memo is to provide an outline of the changes and explanation on how the changes will impact our valued clients. As accountants, understanding the Statement of Auditing Standards (SAS) No. 112 and the superseding SAS No. 115 is extremely important as they may affect our audit results and findings. This internal memo is being distributed to all accountants in our office to provide information related to the new changes in standards and to show how the changes my affect you (AICPA, 2009). SAS No. 115 has replaced SAS No. 112 effective on or after December 15, 2009. SAS No. 115 was designed to bring awareness of deficiencies in internal controls and to assist in reducing the risks of financial statement misstatements. SAS No. 115 also provides guidance on how to assess whether a deficiency in internal controls is a compelling deficiency or materials weakness. The auditor will evaluate the identified controlled deficiencies and decide if the deficiencies are significant or material. The main difference between SAS No. 112 and SAS No. 115 are the definitions of significant deficiency and material weakness (AICPA, 2009). SAS No. 112 defined significant deficiencies as "more than a remote likelihood...
Words: 1241 - Pages: 5
...491 Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion Questions 1, 2 and 3 Weekly Summary WEEK 2 Individual Assignment from Text, Questions 1-23 Learning Team, Auditing, Attestation, and Assurance Services Paper 1 Learning Team, Auditing, Attestation, and Assurance Services Paper 2 Discussion Questions 1, 2 and 3 WEEK 3 Individual Assignment from Text, 5-29, 5-30, 6-20, 6-21, 6-22, 7-22 Learning Team Assignment, Assessing Materiality and Risk Simulation Paper Learning Team Assignment, Assessing Materiality and Risk Assessment Presentation Learning Team Assignments from Text, Exercises 6-26, 7-25 Discussion Questions 1, 2 and 3 WEEK 4 Individual Assignment from Text, 8-15, 8-16, 10-31, 10-32 Learning Team Assignment - Apollo Shoes Case Assignment Discussion Questions 1, 2 and 3 WEEK 5 Individual Assignment from Text, 11-6, 11-8, 11-9, 13-8 Learning Team Assignment - Audit Sampling Case Memo Weekly Summary Final Examination ACC 491 Contemporary Auditing 1, Complete Course + Final Exam Purchase here http://chosecourses.com/acc-491-contemporary-auditing-1-complete-course-final-exam Product Description WEEK 1 Individual Assignment, Generally Accepted Auditing Standards Discussion...
Words: 890 - Pages: 4
...s e c TIo n client acceptance C a s es inC lu de d in t his se Ction 1 3 1.1 Ocean Manufacturing, Inc. . . . . . . . . . . . . . . . . . . . . . . The New Client Acceptance Decision InsTrucTor resource Manual — Do noT copy or reDIsTrIbuTe InsTrucTor resource Manual — Do noT copy or reDIsTrIbuTe ocean Manufacturing, Inc. The new client acceptance Decision ins tr uC t ional o b je C t ive s [1] To c a s e 1.1 Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt help students understand the process of considering a new prospective audit client and the factors that auditors commonly consider in making the acceptance decision. [2] To give students experience in computing and interpreting preliminary analytical procedures commonly used in obtaining an understanding of a prospective client during the client acceptance decision process. [3] To raise issues relating to auditor independence in the context of client acceptance, both in terms of financial interests and the provision of non-audit services. To illustrate the subjective and sometimes difficult nature of the judgments involved in the client acceptance decision, and to give students the opportunity to justify a recommendation on client acceptance in the presence of both significant positive and negative factors. [5] To help students understand how information gathered in the client acceptance process can help the auditor in planning the audit if the client...
Words: 4495 - Pages: 18
...Audit Evidence of Grande Store Case Nancy Johnson Rasmussen College Author Note This paper is being submitted on January 23, 2015, for Gary Rosner, A340 Advanced Auditing Concepts and Standards course. Audit Evidence of Grande Store Case When it came to the audit of the Grande Store there was insufficient numbers (four out of 1,100) to be an exact for the confirmations that were made regarding what was spent by McClure Advertising Credits. With 114 pages, 1,100 vendors and $300,000 at least 1% should have been audited for each vendor. Getting information to confirm by an outsider who has the qualifications is reliable and acceptable but it should be in written form. The auditors of Grande Store used the phone. This alternative procedure might be acceptable but it should never be used. The auditors felt the differences in the audit were immaterial, but the auditors should have went further and found out the reason for these differences. If the auditors had kept track of the differences they might have found that there were many errors this causing them to find the reason why there were so many differences (Arens, Elder, & Beasley, 2012, pp. 175-206). When it came to testing the ad’s the auditors should never rely on just internal documentation. By trusting the internal documentation they did not have sufficient enough evidence to support the credits. Placing an ad is not sufficient enough evidences without quality supporting evidences from the vendor that it...
Words: 1003 - Pages: 5
...MEMORANDUM TO: Accounting Staff FROM: Junior Accountant DATE: September 23, 2013 SUBJECT: Replacement of SAS 112 with SAS 115 The American Institute of CPAs (AICPA) Statement on Auditing Standards (SAS) Number 115 supersedes SAS Number 112. Going forward, auditors are to use rule SAS 115 when performing internal control audits. The rules have some similarities. However, the key differences in the rules are the definitions for control deficiency, significant deficiency, and material weaknesses. The change in rules also creates more opportunities for accounting firms to offer services. Similarities between SAS 112 and SAS 115: Similarities exist between SAS 115 and SAS 112. The rules require auditors to look at deficiencies found during an audit. The auditor must continue to identify the deficiencies found as significant deficiencies or material weaknesses.1 SAS 112 and SAS 115 require auditors to determine if internal controls can prevent and detect errors. Management receives written communication of the findings, as before. Both rules require management to become more aware of the weaknesses in the organizational internal controls. The differences in rules SAS 112 and SAS 115 are as significant as the similarities. Differences between SAS 112 and SAS 115: The differences between SAS 112 and SAS 115 are subtle but important. The major difference between the two rules is the definition of control deficiency, significant deficiency, and material weakness...
Words: 1974 - Pages: 8
...following statements is true of a public company's financial statements? | | | Student Answer: | | Sarbanes-Oxley requires only the CEO to certify the financial statements. | | | | Sarbanes-Oxley requires only the CFO to certify the financial statements. | | | | Sarbanes-Oxley requires the CEO and CFO to certify the financial statements. | | | | Sarbanes-Oxley requires neither the CEO nor the CFO to certify the financial statements. | | Instructor Explanation: | Chapter 6, p. 136. | | | | Points Received: | 5 of 5 | | Comments: | | | | 4. | Question : | (TCO F) The auditor's best defense when material misstatements are not uncovered is to have conducted the audit: | | | Student Answer: | | in accordance with auditing...
Words: 644 - Pages: 3
...Advanced External Auditing [AU2] Examination Blueprint 2013/2014 Purpose The Advanced External Auditing [AU2] examination has been constructed using an examination blueprint. The blueprint, also referred to as the test specifications, outlines the content areas covered on the examination and the weighting allotted to each content area. This document also lists the topics, the level of competence for each topic, and the related learning objectives and competencies. The learning objectives have been designed to ensure that the competencies are met. In addition, information is provided on the proportion of each question type presented in the examination (that is, multiple choice, quantitative problems, and so on). Use Candidates should use the examination blueprint to prepare for the course examination. The blueprint may not include all the topics listed in the course materials; however, candidates are still responsible for acquiring a broad-based knowledge of all topics not listed in the blueprint since these topics will be tested in assignment and review questions. The topics not listed in the blueprint will also provide candidates with a greater depth of understanding of auditing concepts. Examination Objectives The objective of the 4-hour comprehensive examination is to test CGA candidates on the prerequisite knowledge required for advancement into PA1 and PA2, so as to ensure that the candidates have the broad-based knowledge in assurance needed to function properly in the association’s...
Words: 7165 - Pages: 29
...wants someone it can trust to turn in all the evildoers in the company who refuse to implement internal controls. Internal audit departments usually report directly to the chairman of the audit committee, so they feel protected from blowing the whistle on the hordes of dishonest managers who surely have infested the company. The real mission of the internal audit department is to help improve the state of internal controls at the company. Admittedly, this is accomplished by performing audits and reporting the results, but we must remember that these acts provide no value in and of themselves. They only provide value when the internal control issues are resolved. This is an important distinction to remember as we develop our approach to auditing and, most important, to dealing with the people who are the "targets" of our audits....
Words: 3578 - Pages: 15
...Name ACCT525 Week 6 Assignment 1. What efforts is the Auditing Standards Board making to clarify auditing standards? There are efforts on the United States side to clarify the auditing standards. The Auditing Standard Boards [of the United States], which sets auditing standards for nonpublicly traded entities, has launched the Clarity Project in an effort to make U.S. Generally Accepted Audited Standards (GAAS) easier to read, understand, and apply. The Clarity Project includes the goal of working toward convergence of U.S. auditing standards with International Standards on Auditing (ISA). This convergence project is attempting to make auditing standards coordinated or comparable throughout the world. Additionally, the Public Company Accounting Oversight Board (PCAOB) adopted a suite of eight auditing standards related to the auditor’s assessment of, and response to, risk in an audit. The eight new risk assessment standards address the audit procedures from the initial planning stages through the final evaluation of audit procedures and results. As a result, the PCAOB auditing standards and ISAs have more similarities than ever before. 2. Describe the five key differences between ISA’s and US Auditing Standards. Even so, there are still some differences between ISA’s and U.S. Auditing Standards. The five key differences between ISA’s and US Auditing Standards are: documentation of audit procedures; going-concern considerations; assessing and reporting on internal...
Words: 864 - Pages: 4
...In this case, engagement team has performed some auditing activities; the engagement team doubted the useful lives of acquired property, planet, and equipment (PPE). The team discussed with the manager of Little Drummer to make sure the useful lives used was right. Also the team document was documented in the audit paper. However, those series of audit activities is inappropriate to check Billy’s use the right useful lives for acquired PPE. Instead, auditors should re-evaluation the acquired PPE. Auditors can inspect the Little Drummer’s prior accounting records to identify the prior depreciation and base value of the related PPE. Also auditors can through the observation and recalculation to find the proper value and useful lives. In general, auditors should also consider the impairment since it does affect the value and useful lives of the PPE if, for instance, there are some damage of the equipment. If there are some different that Billy’s did not report or announce, auditors should document those differences in its reports. Billy’s spread the $865 million plant to each asset based the percentage of the seller’s total original cost applicable to each asset class. What the engagement team did is that they checked the spread list, provided by management of Little Drummer, with the real plant assets. This is definitely inadequate. Auditors want to make sure that the evidence, the spread list, is reliable. So, more audit tests should be performed. First, auditors need to test...
Words: 472 - Pages: 2
...New York, NY. 90001 Dear Mrs. Right, Mr. Lancaster, President of Apollo Shoes, has expressed his satisfaction with the services that our firm offers and would like to continue with a full audit. Because our client does not want our firm to talk to the predecessor auditor, I recommend accepting a prospective engagement after I perform an investigation by gathering information about our client's reputation and background. Client acceptance and continuance procedures are the foundation of the risk assessment process (SAS No. 8). Upon acceptance of our client, I am confident that we will be able to move forward under the AICPA auditing standards to determine that the financial reporting framework is appropriate. My objective is to plan the audit so that it is conducted efficiently and effectively, in accordance with Generally Accepted Auditing Standards. I will take into consideration the preliminary planning activities such as the client acceptance, ethical position of our audit firm and our understanding of the entity and its environment, including its internal control, to develop an effective and efficient overall audit strategy that will appropriately respond to assessed risks. Our engagement letter, will include the timetable of fieldwork, the scope and duration of the audit, expected delivery date, and our fee structure. Once we retain our client, substantive audit planning can begin. Determining materiality and conducting a thorough risk assessment will be part of...
Words: 1378 - Pages: 6
...The Violet Bay School INTRODUCTION According to the Government Accounting Standards Board (GASB), the objective of financial reporting is to assist a government entity in fulfilling its obligation to be publicly accountable and to enable users to assess accountability (GASB 2007; Government Accountability Office [GAO] 2007). Budgeting, a process whereby government administrators forecast expected revenues and identify planned expenditures, is an integral part of accountability, and the extent to which a governmental entity adheres to its budget is a major consideration when assessing accountability. In August 2005, Violet Bay1 taxpayers were informed that their school system had run a $7 million deficit after several previous assurances that the system was fiscally sound and would finish the year with a surplus. By November 2005, an external audit determined that the actual deficit was $12.1 million. Three months later, a special grand jury report was released describing the causes of the financial crisis and addressing the means to correct the situation. What went wrong? Place yourself in the role of an auditor or a consultant and identify the problems. As you do so, you will better appreciate the importance of internal control and will gain experience in identifying and assessing client risks. While this case involves a governmental entity—a school district—no prior coursework in governmental accounting is required to complete case requirements. PART I – THE BUDGET PROCESS The...
Words: 5312 - Pages: 22
...Running head: Unit 3 Textbook Questions Unit 3 Textbook Questions Wendy Fast AC503: Advanced Auditing Unit 3 Textbook Questions 5-29: (Assertions). In planning the audit of a client’s inventory, an auditor identified the following issues that need audit attention. 1. Inventories are properly stated at the lower of cost or market. Valuation or Allocation. 2. Inventories included in the balance sheet are present in the warehouse on the balance sheet date. Rights and obligations. 3. Inventory quantities include all products, materials, and supplies on hand. Completeness. 4. Liens on the inventories are properly disclosed in notes to the financial statements. Presentation and Disclosure. 5. The client has legal title to the inventions. Rights and Obligations. 6. The financial statements disclose the amount of raw materials, work in progress, and finished goods. Valuation or Allocation. 7. Inventories include all items purchased by the company that are in transit at the balance sheet date and that have been shipped to customers on consignment. Completeness. 8. Inventories received on consignment from suppliers have been excluded from inventory. Rights and Obligations 9. Quantities times prices have been properly extended on the inventory listing, the listing is properly totaled, and the total agrees with the general ledger balance for inventories. Valuation or Allocation. 10. Slow-moving items included in inventory have been...
Words: 1895 - Pages: 8
...Ruby Blanco AC503 Kaplan University Unit 3: Homework Assignment 5-29 1. Valuation or Allocation 2. Rights and Obligations 3. Completeness 4. Presentation and Disclosures 5. Rights and Obligations 6. Valuation or Allocation 7. Completeness 8. Rights and Obligations 9. Valuation or Allocation 10. Valuation or Allocation 11. Rights and Obligations 6-21 A. Inquiry oral evidence is the weakest form of evidence and if given by the client should typically be followed up and verified by better evidence. Inquiry of outside parties can be more convincing. Evidence from inquiry should be based on how knowledgeable the parties are about the business and procedure. Often the client will tell you what they think is happening but they might not have verified it lately and may be relying on what someone else has told them. So, the best inquiry is from the person actually doing the activity, not someone who thinks it should be done. Inquiry has very low validity and is a good starting place to decide what to test and perhaps the areas for attention but is not persuasive. B. An audit may include computation of various balance sheet and operating ratios for comparison to prior years and industry averages. Discuss the validity and limitations of ratio analysis in an audit. Ratio analysis and analytical review is helpful to get the big picture and find areas that do not meet expectations and therefore are higher risk. The validity...
Words: 1320 - Pages: 6
