...Resubmission 8/20/14 Unit Two Problems Rachael Wiltz Kaplan University AC-503 Advanced Auditing John Kuhn Tuesday, August 19, 2014 Textbook (Boynton): Complete and submit the following questions for grading: 3-30 1. A member shall not express an opinion that the financial statements are presented in conformity with GAAP unless the pronouncements of the FASB have been followed. 2. A member shall not discriminate in employment of assistants. 3. A member shall not include self-laudatory statements that are not based on verifiable facts in advertisements. 4. A member shall not accept a commission for a referral to a client of products of service of others. 5. A member’s fee may vary depending on the complexity of the service rendered. 6. A member is not precluded from responding to an inquiry by a trial board of the AICPA 7. A member may not serve as a trustee for any pension trust of the client during the period covered by the financial statements. 8. A member shall adequately plan and supervise an engagement. 9. A member may not have or be committed to acquire any direct financial interest in the client. 10. A member shall not practice under a misleading firm name. 11. A member shall not knowingly subordinate his or her judgment to others. 12. A member shall follow the technical standards of the Auditing Standards Board in an audit engagement. 13. A member bases the fee on the findings determined by the IRS in...
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...ACC305 – Auditing and Professional Practice Unit Outline – 2015 Unit Coordinator: Dr Chun Jiang (PhD, FCPA) 1|P age Introduction Welcome to Elite Education and ACC305 – Auditing and Professional Practice. This document provides you with information relevant to successful completion of this unit; including schedule of lecture topics, prescribed texts, assessment policies, assessment tasks, examinations, academic and administrative contacts and online learning support facilities. Student Handbook and Administration Office The Elite Student Handbook provides valuable general information for students and a printed copy will be provided to you. In addition, the Institute staff are available to assist you personally during office hours. Office Contact Details: Elite Education Institute 1 James Place, North Sydney, NSW 2060 Tel: 02 9212 2120 Unit Overview This unit introduces the major conceptual and technical aspects of auditing and assurance services. Accordingly, the unit provides critical insights into the auditor's legal and societal role, the underlying conceptual theory of auditing, professional auditing techniques, and contemporary auditing issues. The core theme of this unit is the external audit of corporations, from initial planning to final reporting in the context of a professional environment. Assumed Knowledge Prerequisite: ACC101 – Fundamentals of Accounting I, ACC102 – Fundamentals of Accounting II, and ACC204 – Advanced...
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...Fordham University Graduate School of Business ACGB 7171 Auditing of Accounting Systems I—Fall 2013 Course Objectives: The objective of this course is to introduce students to the auditor’s decision-making process in both an audit of financial statements and an audit of internal controls over financial reporting. The class consists of lecture, individual case studies and in class exercises. Students are given an introduction to the following topics: • Generally Accepted Auditing Standards (GAAS) • The AICPA Code of Professional Conduct and its related rules and interpretations • An auditors’ legal responsibilities • Auditors professional judgment • The evaluation and testing of internal controls • The effect of IT on the audit process • The development of an audit program • PCAOB standards • The auditor's reports Book: Auditing and Assurance Services by Arens, Elder and Beasley 14ed Publisher Pearson/PrenHall ISBN 978013257595 |2013 |Topic |Assignment/Chapter to read | |Thursday September 5th |Introduction to the CPA Profession and the Auditing |Chapters 1 and 2 | | |Environment | | | | ...
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...Name Chapter 1: Auditing: Integral to the Economy Description Instructions Modify Add Question Here Question 1 True/False 0 points Modify Remove Question The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. Answer True False Add Question Here Question 2 True/False 0 points Modify Remove Question An audit of financial statements is a form of attestation service. Answer True False Add Question Here Question 3 True/False 0 points Modify Remove Question Independence is an attribute necessary to perform assurance services. Answer True False Add Question Here Question 4 True/False 0 points Modify Remove Question A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting. Answer True False Add Question Here Question 5 True/False 0 points Modify Remove Question Independence is only required for assurance service providers. Answer True False Add Question Here Question 6 True/False 0 points Modify Remove Question A CPA automatically qualifies as an assurance provider in all areas of business. Answer True False Add Question Here Question 7 True/False 0 points Modify Remove Question Attestation services are a subset of assurance services and always involve a report that...
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...Many people are familiar with the role of the ethics in the auditing profession which basically is integrity and objectivity for the auditors. This essay addresses dimension of the ethics in the profession of auditing main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their products. According to roger D, martin auditors face ethics issues from two perspectives among which one is well known and other being known and appreciated by the people who are familiar with auditors knowing their work and responsibility. The prospective of this is to deal among the ethical foundation of the auditing profession and to show the integrity and get appreciated with the job they do. This indicates ethics prospective as seeking within their profession on how to manage and achieve their targets with no difficulty. The other prospective, which the auditors face, is to understand and get the solution for the current and new clients. This is generally referred as an assessment, which demands a complete attention and understanding of ethics, ethical infrastructure and the solution of that infrastructure. This essay will give a complete picture on why ethics is important to the auditors and how significant is the contribution of auditors is to the effective corporate governance...
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...Auditing Auditing has been around since the mid-1800's, which originated in British. Some of firms today have been around since the 1800's, such as Deloitte & Co. Price Waterhouse & Co. In this paper, I will state the functions of auditing, the nature of auditing, how the standards apply to financial, operational, and compliance audits, and some other items that pertain to auditing in general. Nature of Auditing The nature of auditing is that auditors are placed with a special purpose, which is to provide credibility to the information that is reported on the financial statements, along with any other audits that are done by them.... [tags: Accounting Audit]1104 words (3.2 pages)FREE Essays[view]The History of Auditing - The History of Auditing Abstract The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations.... [tags: GCSE Business Marketing Coursework] :: 6 Works Cited3399 words (9.7 pages)$39.95[preview]Auditing Percedure - The factor of client relationship that creates a power imbalance in favor of the client is money. When partners...
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...2-7 The Public Company Accounting Oversight Board (PCAOB) is responsible for establishing auditing standards for audits of public companies. The PCAOB was established by the Sarbanes-Oxley Act and appointed and overseen by the Securities and Exchange Commission (SEC). The Auditing Standards Board (ASB) of the AICPA is responsible for establishing auditing standards for the audits of private companies. However, prior to the SOX Act, the ASB established standards for private and public companies. Thus, the PCAOB adopted existing standards established by the ASB as interim audit standards. The PCAOB is now issuing its own auditing standards, including establishing standards for audits of the effectiveness of internal control over financial reporting. 2-10 The criticism of the 10 GAAS by some critics, is founded in the belief that by the GAAS being more specific, then they would thereby eliminate some difficult audit decisions provide a line of defense for a CPA firm charged with conducting an inadequate audit. However, highly specific requirements could turn auditing into mechanistic evidence gathering, devoid of professional judgement, from differing points of views, there is probably greater harm in defining authoritative guidelines too specifically than too broadly. 2-16 a. (1) b. (2) c. (3) d. (3) 2-20 a. Firstly, Rossi and Montgomery's primary ethical consideration is their professional competence to perform all of the audit work for filing with...
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...Carmichael. On April of 2003, Mr. Carmichael was appointed the first Chief Auditor and Director of Professional Standards for the Public Company Accounting Oversight Board. As such he was the primary advisor to the PCAOB on policy and technical issues relating to the auditing of public companies, including but not limited to auditing standards, registration, inspection, and thus enforcement of any mandates that are part of the Sarbanes-Oxley Act. QUESTION 2) WHAT DOES CARMICHAEL SEE AS THE UNDERLYING MISSION OF THE PCAOB? Carmichael views the underlying mission of the PCAOB to be the restoration of the public’s confidence in the auditor’s reports and findings. Accounting scandals, involving companies like Enron and WorldCom, prompted Congress to adopt the Sarbanes-Oxley Act as a means to establish control over accounting and auditing functions. A main focus of Sarbanes-Oxley was the establishment of the PCAOB. The PCAOB is a nongovernmental body, fully funded by fees collected by public and investment companies that benefit from independent audits. They are charged with overseeing the audit of public companies that are subject to SEC laws and related matters of the kind. Carmichael states that the confidence is not only to be earned by the accountants and auditors producing and reviewing the information, but also “by those who aspire to set the standards for auditors.” QUESTION 3) ACCORDING TO CARMICHAEL, WHY IS IT SO IMPORTANT THAT THE PUBLIC HAVE CONFIDENCE...
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...Auditing and Assurance Introduction The essay is mainly discussing that Transval Ltd wants to hire a new auditing team and depend on the request that be given to the new auditor, whether the new auditor should accept the offer to audit for Transval Ltd or not. Upon that, the essay also talks about the threats to the objectivity as an auditor and the ways to mitigate these threats. Last part of the essay is talking about the risks that could cause misstatements to the financial statements and how quality control can mitigate them. A) Firstly, according to the information given from the case, there is a part of inventory not located at Transval Ltd. This part of inventory is located at customers’ premises which means Transval Ltd has to count inventory quarterly from each customer. Consider about this, there might be a misstatement happened here. Auditors have to get the right and overall information from the company to do the audited accounts. There is a possibility that the information like financial accounts from the customers’ companies are not overall or if there is any mistake in it, the auditor will not know. The audited account will not be accurate if that happened. Secondly, the firm’s most of existing customers are from the retail and service sectors. So as an auditor from this kind of firm might not have enough experience on the company like Transval Ltd. Transval Ltd is a company which make plastice balls for use in the injection moulding business. The...
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...Ethics Audit Framework Essay # 3 Stephen Randall Texas A&M University – Central Texas Professor: Marshell J. Silva Ethics Auditing Ethics auditing by definition, an ethics audit is a “systematic evaluation of an organization’s ethics program and/or performance to determine its effectiveness.” This concept of ethics auditing is fairly new and few companies have conducted an ethics audit. However, performing such audits will likely become more mainstream as recent legislation encourages greater ethical accountability for companies to demonstrate they are abiding by the law and have established programs to improve their ethical decision making. The U.S. Sentencing Commission (the “Commission) has amended the Federal Sentencing Guidelines for Organizations (“FSGO”) whereby an effective compliance and ethics program must “exercise due diligence to prevent, detect, and report criminal conduct and otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with all applicable law." The Commission noted there are seven minimum requirements of an effective ethics program, standards and procedures to prevent and detect criminal conduct; Responsibility at all levels of the program, together with adequate program resources and authority for its managers; Due diligence in hiring and assigning personnel to positions with substantial authority; Communicating standards and procedures, including a specific requirement for training...
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...United States or was received from a non-accredited US college or university, the education has to be evaluated by a recognized evaluation service (Board of Accountancy Washington State). The CPA exam consists of multiple choice questions, written communication, and task based simulations. There are two sections to the CPA exam: the content specification outlines (CSOs) which covers auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts; and the skill specification outlines (SSOs) which covers knowledge and understanding, application of the knowledge, and written communication (American Institute of CPAs, 2013). The auditing and attestation section of the CSOs covers auditing standards for public and non-public entities, government entities, and not-for-profit entities. It also covers employee benefit plans, standards related to attestation and assurance, standards for accounting and review services, and knowledge of CPA responsibilities, such as ethics and independence (American Institute of CPAs, 2013). The percentage breakdown of the auditing and attestation part of the CSO section questions is as follows: Engagement acceptance and understanding the assignment...
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...these problems do not come up again. CLERP 9 and the Sarbanes-Oxley Act are just a couple of acts that have caused significant changes to the accounting world in recent times. This paper will look at some of the different issues that accountants face as well as some of the regulations that seek to end unethical behavior. Ethical Standards in Accounting Introduction The accounting industry is an always changing and constantly growing industry. Accounting plays a vital role in society and business and up until recently accounting was considered to have some of the highest standards for ethical and moral conduct in business. In recent years there have been many high profile business failures caused by the unethical behavior or accountants and accounting firms. Since some major companies, like Enron were involved in serious financial scandals, there has been a push to increase regulation and oversight over financial reporting. At one time accounting professionals were believed to have the highest integrity of all professionals; however, recent events have caused a loss... View Full Essay Join Now Please login to view the full essay... Essay's Statistics Submitted by:...
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...This essay will discuss the following main statement; the adoption of a proposed new look Code of Ethics, based on the international Federation Accountants’ code, will ensure that New Zealand Charted Accountants meet their ethical responsibilities. Within this essay an adverse position will be taken towards the previous statement. The international Federation of Accountants (IFAC) states that, professional standards and the code of ethics form important benchmarks that should be met by practicing accountants. Accountants should understand and apply them when conducting any type of work (Pickett 2005). The New Zealand Institute of Charted Accountants (NZICA) is a member of IFAC, as part of its member obligations NZICA has to apply the same standards as IFAC (nzica) . This is how the previous statement arises, due to IFAC recently going through a major revision of the code in the area of independence. (nzica) .This essay will appoint different issues and concerns about adopting a new code of ethics and how this change will actually affect the society. Such points are; personal moral judgment, ethical education being a factor of ethical responsibilities and unclear types of enforcement and points of the Code of Ethics. “Good ethics, whether at work or home, demands self-knowledge, Whereas some groups want to see ethics as a skill or a particular part of organizational transformation, practising good ethics ultimately comes down to you and how you make decisions.”(6). Moral judgment...
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...company is either audited by the GAO or internal auditors, but not both. Answer: False Difficulty: Easy 4. The SEC does not pass on the merits of the securities that are registered with the agency. Answer: True Difficulty: Medium 5. The American Institute of Certified Public Accountants has the primary authority to establish accounting standards. Answer: False Difficulty: Easy 6. An annual peer review is a requirement of the AICPA. Answer: False Difficulty: Medium 7. Many small companies elect to have their financial statements reviewed by a CPA firm, rather than incur the cost of an audit. Answer: True Difficulty: Easy 8. Staff assistants in CPA firms generally are responsible for planning and coordinating audit engagements. Answer: False Difficulty: Easy Whittington, Principles of Auditing, Fifteenth Edition 1 Chapter 1 The Role of the Public Accountant 9. The Sarbanes-Oxley Act requires that auditors of publicly traded companies in the United States perform an integrated audit that includes providing assurance on both the financial statements and on compliance with laws and regulations. Answer: False Difficulty: Medium 10. Auditing is frequently only a small part of the practice of local CPA firms. Answer: True Difficulty: Medium Multiple Choice Questions 11. A summary of findings rather than assurance is most likely to be included in a(n): A) Agreed-upon procedures report. B) Compilation report. C) Examination report. D) Review report. Answer: A Difficulty: Medium...
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...sampled because materiality represents the magnitude of an omission or misstatement of an item in a financial report. The three function of the audit risk are inherent risk (IR), control risk (CR), and detection risk (DR). Every level of audit risk has an opposite connection that exists between assessed levels of controls, inherent risk, and level of detection risk Why do certain accounts have to be audited 100%? Accounts need to be audited 100% so the users of the financial statements can rely on the information and be able to make decisions for investment purposes. It also helps management make sure the company is profitable as well as following rules and regulations of the accounting standards and policies. Auditing accounts are done to protect the investors, shareholders, banks, and to give assurance that the information is true and correct. Account types such as inventory, accounts payable, property, plant and equipment are not required to fully be audited as it is a time-consuming process. Accounts that are audited 100% are accounts most relevant to the industry that the company represents. Why is materiality allocated only to those accounts that are sampled?...
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