...30, 1998. On May 6, 1998, Smith, the senior auditor assigned to the engagement, had the following conversation with Kent concerning the planning phase of the audit: Kent: Do you have all the audit programs updated yet for the SCS engagement? Smith: Mostly, I still have work to do on the fraud risk assessment. Kent: Why? Our "errors and irregularities" program from last year is still OK. It's passed peer review several times. Besides, we don't have specific duties regarding fraud. If we find it, we'll deal with it then. Smith: I don't think so. That new CEO, Mint, has almost no salary, mostly bonuses and stock options. Doesn't that concern you? Kent: No. Mint's employment contract was approved by the Board of Directors just three months ago. It was passed unanimously. Smith: I guess so, but Mint told those stock analysts that SCS's earnings would increase 30% next year. Can Mint deliver numbers like that? Kent: Who knows? We're auditing the '98 financial statements, not '99. Mint will probably amend that forecast every month between now and next May. Smith: Sure, but all this may change our other audit programs. Kent: No, it won't. The programs are fine as is. If you find fraud in any of your tests, just let me know. Maybe we'll have to extend the tests. Or maybe we'll just report it to the audit committee. Smith: What would they do? Green is the audit committee's chair, and remember, Green hired Mint. They've been best friends for years. Besides, Mint is calling...
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...On May 6, 2009, Smith, the senior auditor assigned to the engagement, had the following conversations with Kentconcerning the planning phase of the audit: Kent: Do you have all the audit programs updated yet for the SCS engagement? Smith: Mostly. I still have work to do on the fraud risk assessment. Kent: why? Our “errors and irregularities” program from the last year is still OK. It’s passed peer review several times. Besides, we don’t have specific duties regarding fraud. If we find it, we’ll deal with it then. Smith: I don’t think so. That new CEO, Mint, has almost no salary, mostly bonuses and stock options. Doesn’t that concern you? Kent: No. The board of directors approved Mint’s employment contract just three months ago. It was passed unanimously. Smith: I guess so, but Mint told those stock analysts that SCS’s earnings would increase by 30% next year. Can Mint deliver numbers like that? Kent: Who knows? We’re auditing the 2008 finanical statements, not 2009. Mint will probably amend that forecast every month between now and next May. Smith: Sure, but all this may change our other audit programs. Kent: No, it won’t. the programs are fine as is. If you find fraud in any of your tests, just let me know. Maybe we’ll have to extend our tests. Or maybe we’ll just have to report it to the audit committee. Smith: What would they do? Green is the audit committee’s chair, and remember Green hired Mint. They’ve been best friends for years. Besides...
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...Email Materiality and Audit Risk Corporate Governance PROBLEM SOLVING CLO2 | LD2/P3 Instruction: Please answer ALL questions. | Part 1 NEW CLIENT ACCEPTANCE DECISION Learning Objectives After completing and discussing this case, you should be able to: 1. Understand the types of information relevant to evaluating a prospective audit client 2. List some of the steps an auditor should take in deciding whether to accept a prospective client 3. Identify and evaluate factors important in the decision to accept or reject a prospective client 4. Understand the process of making and justifying a recommendation regarding client acceptance INTRODUCTION Your accounting firm is a medium-sized, accounting firm in Malaysia, formed in 2012, mainly provides auditing and tax services. But it has recently had success in building the information-systems-consulting side of the business. Recently, your group has been assigned for the first time to perform audit engagement procedures for a small and medium-sized company in Malaysia. One of team member has been a senior auditor for the past three years. Your first assignment is to assist an audit partner on a client acceptance decision. The partner explains to you that the prospective client, Unggul Holdings Berhad, is a medium-sized textile company. The partner recently met the company's top management during an informal social dinner. The company Chief Executive Officer (CEO) indicated that, after some difficult disussions...
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...Consideration of Fraud in a Financial Statement Audit 1719 AU Section 316 Consideration of Fraud in a Financial Statement Audit (Supersedes SAS No. 82.) Source: SAS No. 99; SAS No. 113. Effective for audits of financial statements for periods beginning on or after December 15, 2002, unless otherwise indicated. Introduction and Overview .01 Section 110, Responsibilities and Functions of the Independent Auditor, paragraph .02, states, "The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. [footnote omitted]"1 This section establishes standards and provides guidance to auditors in fulfilling that responsibility, as it relates to fraud, in an audit of financial statements conducted in accordance with generally accepted auditing standards (GAAS).2 .02 The following is an overview of the organization and content of this section: • • • Description and characteristics of fraud. This section describes fraud and its characteristics. (See paragraphs .05 through .12.) The importance of exercising professional skepticism. This section discusses the need for auditors to exercise professional skepticism when considering the possibility that a material misstatement due to fraud could be present. (See paragraph .13.) Discussion among engagement personnel regarding the risks of material misstatement due to fraud. This section requires...
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...Auditing Cases An Interactive Learning Approach FIFTH M F S D E D ITIO N S. B A. B M. G F. P Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager: Carol O'Rourke Senior Operations Supervisor: Diane Peirano Printer/Binder: BindRite Graphics, Robbinsville Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright © 2012, 2009, 2006, 2003, 2000 by Pearson Education, Inc., publishing Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish...
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...auditing. Specific Learning Outcomes After completion of this course, the student should achieve the following outcomes: * Given a business process, students will be able to perform the 3 steps of an audit process (planning, fieldwork and reporting) by applying the International Professional Practice Framework (IPPF), the International Standards for the Professional Practice of Internal Auditing (Standards) and guidance to the practice of internal auditing, and COSO framework. (PUL 1, 2 ;PBL 1, 3; MSA Goal 3, 4) * Students will be able to create a risk assessment for a basic business process (i.e. accounts payable or simple cash process) by applying the concepts of risks and controls to analyze the business process. (PUL 2, 3; PBL 1; MSA Goal 1, 3) * Students will be able to articulate the different enterprise-wide governance principles, the relationship between governance and enterprise risk management and...
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...internal control Qver Financial Reporting CASES INCLUDED iN THIS SECTiON 1. Simply Steam, Co. 155 Evaluation of Internal Control Environment 2. Easy Clean, Co. 155 Evaluation of Internal Control Environment 3. Red Bluff Inn & Café 165 Establishing Effective Internal Control in a Small Business 4. St. James Clothiers 169 Evaluation of Manual and IT-Based Sales Accounting System Risks 5. Collins Harp Enterprises 177 Recommending IT Systems Development Controls 6. Sarbox Scooter, Inc. 185 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 7. Société Générale 195 How a Low-Risk Trading Area Caused a $7.2 Billion Loss case5.!-2 Easy Clean/Simply Steam, Co. Evaluation of Internal Control Environment Mark S. Beasley • Frank A. Buckless • Steven M. Glover • Douglas F. Prawitt INSTRUCTIONAL OBJECTIVES 1] To reinforce aspects relevant to the internal control environment. 2] To illustrate the degree of judgment involved in making internal control environment evaluations. 3] To provide students experience in making subjective evaluative judgments. 4] To provide a forum to discuss inquiry techniques as well as inquiry as a form of audit evidence. 5] To provide students direct experience with, and discovery of, issues surrounding the control environment, making inquiries, and the framing (e.g., positive or negative) of information provided by management. 6] To illustrate...
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.... . . . . . . . . . . . . . . . . . . . . . . . . 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 He Pocket the Cash? Recognizing It’s a Fraud and Evaluating What to Do . . . . . . . . . . . . . . . . 63 The Anonymous Caller WorldCom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 ...
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...Rights Reserved Copyright ©2006 by J. Ross Publishing, Inc. ISBN 1-932159-25-8 Printed and bound in the U.S.A. Printed on acid-free paper 10 9 8 7 6 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Schnapper, Melvin. Value-based metrics for improving results : an enterprise project management toolkit / by Mel Schnapper, Steven Rollins. p. cm. Includes index. ISBN 1-932159-25-8 (hardcover : alk. paper) 1. Project management—Quality control. 2. Performance standards. 3. Work measurement. I. Rollins, Steven C., 1950-. II. Title. HD69.P75S365 2006 658.4′04—dc22 2006001079 This publication contains information obtained from authentic and highly regarded sources. Reprinted material is used with permission, and sources are indicated. Reasonable effort has 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. All rights reserved. Neither this publication nor any part thereof may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The copyright owner’s consent does not extend to copying for general distribution for promotion, for creating new works, or for resale. Specific permission must be obtained from J. Ross Publishing for such purposes. Direct all inquiries to J. Ross Publishing, Inc...
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...CHAPTER FOUR SYSTEM ANALYSIS AND DESIGN In this section we present our system design following the Waterfall method of system design. The diagrams in the system were drawn by using Microsoft Office (Visio and PowerPoint). This chapter is segmented into system description, system requirement, Benefits, Project plan, risk management, context diagrams, use case diagram, use case narrative, non-functional requirement, state diagram, and the Graphical user Interface (GUI). 4.1 System Description There is no universally agreed upon definition of what aspects constitute a system description and various institution and organizations. The fundamental organization of a system, embodied in its components, their relationships to each other and to the environment, and the principles governing its design and evolution. The intelligent administrative recordkeeping system is a system of self-reliance which is to provide ease of accessing records regardless of the location because it’s a web application. It’s a system with portal properties as well as interactive in order to provide a record that is not only accurate but in the real-time context. Thus, in designing this system careful considerations have been assumed and presumed in order to give it that uniqueness of being able to mimic the needs of humans. Worthy of note is that this web application will be able to scan through any connecting device (computer, smart phones, etc.) for any information or records that will enhance its database...
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...| Improvement of Corporate Tax Audit: Factor of Increasing Tax Compliance in Malaysia | | Table of Contents Executive Summary 3 Introduction………………………………………………………………………………………..4 Tax Compliance, Tax Evasion and Tax Audit…………………………………………………….4 Tax Audit in Malaysia…………………………………………………………………………….6 Organization Structure…………………………………………………………………………….8 Tax Audit Process…………………………………………………………………………………9 Tax Audit: Constraints and Problems……………………………………………………………11 Recommendations………………………………………………………………………………..16 Conclusion……………………………………………………………………………………….18 References……………………………………………………………………………………….19 Appendix………………………………………………………………………………………...20 Executive Summary The Malaysian tax system follows the concept of self-assessment system (SAS). Under the SAS, the government trusts and gives taxpayers full responsibility to calculate, to pay and to report their tax due on their own. The success of SAS not only depends on the good tax administration but also depends on the taxpayer awareness, which is indicated by the taxpayer compliance in fulfilling his obligation. In order to enhance the level of tax compliance, the Inland Revenue Board of Malaysia (IRBM) considers that it can be achieved by law enforcement besides tax consultation and tax service. Law enforcement comprises of tax audit, tax investigation and tax collection. Tax audit becomes important since it can cause a deterrent effect to increase taxpayer compliance. Tax audit plays an important role in determining the...
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...Exchange 37 (2008) 124-155 www.brill.nl/exch Ethiopian Traditional Values versus the Social Teaching of the Church Solomon Dejene Research Student, Nijmegen Institute for Mission Studies, Nijmegen, The Netherlands Email: S.Dejene@nim.ru.nl Abstract Even if the Roman Catholic Church does not have a very long history in Ethiopia and constitutes a small minority of the society, her social significance is great in part due to the structural development programs she runs through out the country. The main aim of this paper is to identify how much the Church1 has made use of traditional systems and values in reflecting and communicating pastorally particularly in regard the Social of the Church (henceforth CST). By analyzing four selected pastoral letters, this article tries to spell out the strengths and shortcomings of the Church in employing traditional systems and values in giving form to the CST. Keywords Catholic social teaching, human dignity, common good, solidarity, reconciliation and peace, contextualization, Ethiopian traditional values Introduction Most of the current national boundaries of Africa were drawn during the colonial period and do not reflect the socio-cultural, ethno-linguistic and religious compositions of the colonies. Although Ethiopia has successfully overcome European colonial power and survived as an independent state with the exception of a five year Italian occupation (1936-41), its contemporary national boarder is a result of the scramble for Africa....
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...A GUIDE TO FORENSIC ACCOUNTING INVESTIGATION THOMAS W. GOLDEN, STEVEN L. SKALAK, AND MONA M. CLAYTON JOHN WILEY & SONS, INC. A GUIDE TO FORENSIC ACCOUNTING INVESTIGATION THOMAS W. GOLDEN, STEVEN L. SKALAK, AND MONA M. CLAYTON JOHN WILEY & SONS, INC. This book is printed on acid-free paper. Copyright © 2006 by PricewaterhouseCoopers LLP. PricewaterhouseCoopers refers to the individual member firms of the worldwide PricewaterhouseCoopers organization. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this...
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...FAB PAPER F1 ACCOUNTANT IN BUSINESS BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for the FIA and ACCA qualifications. In this, the only FAB/F1 Study Text to be reviewed by the examiner: We highlight the most important elements in the syllabus and the key skills you will need We signpost how each chapter links to the syllabus and the study guide We provide lots of exam focus points demonstrating what the examiner will want you to do We emphasise key points in regular fast forward summaries We test your knowledge of what you’ve studied in quick quizzes We examine your understanding in our exam question bank We reference all the important topics in our full index BPP’s Practice & Revision Kit and i-Pass products also support this paper. Note FIA FAB and ACCA Paper F1 are examined under the same syllabus and study guide. FOR EXAMS FROM FEBRUARY 2014 TO AUGUST 2015 I N T E R A C T I V E T E X T FAB/F1 ACCOUNTANT IN BUSINESS First edition March 2011 Third edition September 2013 ISBN 9781 4453 7026 2 Previous ISBN 9781 4453 9965 2 eISBN 9781 4453 7061 3 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place 142-144 Uxbridge Road London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by RICOH Ricoh House Ullswater Crescent Coulsdon CR5 2HR A note about copyright Dear Customer...
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...Securing Information Systems LEARNING OBJECTIVES C H A P T E R 7 STUDENT LEARNING OBJECTIVES After completing this chapter, you will be able to answer the following questions: 1. Why are information systems vulnerable to destruction, error, and abuse? What is the business value of security and control? What are the components of an organizational framework for security and control? What are the most important tools and technologies for safeguarding information resources? 2. 3. 4. ISBN 1-256-42913-9 232 Essentials of MIS, Ninth Edition, by Kenneth C. Laudon and Jane P. Laudon. Published by Prentice Hall. Copyright © 2011 by Pearson Education, Inc. C HAPTER O UTLINE Chapter-Opening Case: Boston Celtics Score Big Points Against Spyware 7.1 System Vulnerability and Abuse 7.2 Business Value of Security and Control 7.3 Establishing a Framework for Security and Control 7.4 Technologies and Tools for Protecting Information Resources 7.5 Hands-on MIS Projects Business Problem-Solving Case: Are We Ready for Cyberwarfare? BOSTON CELTICS SCORE BIG POINTS AGAINST SPYWARE While the Boston Celtics were fighting for a spot in the playoffs several years ago, another fierce battle was being waged by its information systems. Jay Wessel, the team’s vice president of technology, was trying to score points against computer spyware. Wessel and his IT staff manage about 100 laptops issued to coaches and scouts, and sales, marketing, and finance employees, and these...
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