...legislation and SEC requirements for public companies in the United States. The core principle of the new standard is that every effort must be made to eliminate all real or perceived threats to auditors’ independence. Development of the new independence standard began in June 2001, after an Independence Forum of auditors, regulators, academics, analysts and financial statement preparers held by the Public Interest and Integrity Committee (PIIC) concluded that the PIIC should develop a uniquely Canadian independence standard that would be based on the international standard, and incorporate the SEC requirements for audits of public companies. The new standard was first released for public comment in September, 2002, and became effective for engagements starting after December 31, 2003. The standard marks a shift to a more rigorous ‘principles-based’ approach, meaning its applicability goes beyond any specific situation and mandates a proactive approach, based on clearly articulated principles. It contains a framework that describes apparent and actual threats to auditor independence. The standard also recognizes that there are certain activities for which there are no adequate safeguards, so it prohibits specified activities and relationships. Overview The standard provides a framework for auditors to apply in...
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...Incorporated Legal Practices Self-assessment Audit Legal Profession Act 2004 (Section 2.7.22) SELF ASSESSMENT AUDIT SECTION 2.7.22 LEGAL PROFESSION ACT 2004 Page Number: [1] Version 1.0 – 201207 INTRODUCTION SECTION 2.7.22 SELF ASSESSMENT AUDIT The Legal Profession Act 2004 (“Act”) contains the key provisions governing the operation of Incorporated Legal Practices (ILPs) and is the source of the Legal Services Board’s (LSB) powers to undertake audits and investigations in respect of ILPs, their legal practitioner directors and executive officers. The LSB has the role of regulating ILPs to ensure compliance with the Act, the Legal Profession Regulations 2005, any legal profession rules and the general law. Working with the Law Institute of Victoria (LIV), the LSB will exercise its statutory role as regulator for ILPs while the LIV will have an educative and member-services focus. Section 2.7.22 of the Act provides that the LSB may undertake an audit to ensure compliance by the ILP with the provisions of the Act. The LSB requires every corporation that engages in legal practice in Victoria to undertake an internal (or self-assessment) audit of its compliance with its obligations under Part 2.7 of the Act. Part A of this form relates to information about your practice. The purpose of this part is to assist the LSB in understanding your practice better to ensure that the corporation is complying with section 2.7.22 of the Act. The information gathered under the LSBs investigative...
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...Accountancy Jump to: navigation, search Accountancy (profession)[1] or accounting (methodology) is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies. The terms derive from the use of financial accounts. Accounting is the discipline of measuring, communicating and interpreting financial activity. Accounting is also widely referred to as the "language of business".[2] Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarised, interpreted, and communicated; for public companies, this information is generally publicly-accessible. By contrast management accounting information is used within an organisation and is usually confidential and accessible only to a small group, mostly decision-makers. Tax Accounting is the accounting needed to comply with jurisdictional tax regulations. Practitioners of accountancy are known as accountants. There are many professional bodies for accountants throughout the world. Many allow their members to use titles indicating their membership or qualification level. Examples are Chartered Certified Accountant (ACCA or FCCA), Chartered Accountant (FCA, CA or ACA), Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant...
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...CGA-CANADA ADVANCED EXTERNAL AUDITING [AU2] EXAMINATION December 2010 Marks 30 Time: 4 Hours Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 11/2 marks each a. Which of the following opinions is an auditor most likely to issue when he or she found a material misstatement in a client’s opening balances during an initial audit engagement, but has determined that the balance sheet accounts at the end of the fiscal year are not materially misstated? 1) 2) 3) 4) An unqualified opinion modified by an explanatory paragraph A qualified (GAAP) opinion A qualified (scope) opinion An adverse opinion b. Which of the following situations is most likely to represent an attitude risk factor, in the context of the fraud triangle model of material financial reporting fraud? 1) 2) 3) 4) c. Significant managerial judgment needed to determine an estimated account balance Major unusual transactions recorded by management Aggressive managers who unduly emphasize meeting quantitative earnings targets Inadequate profitability Which of the following elements is not an example of an organization and management...
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...Inventory Records: It's good business Introduction Jewelers Mutual Insurance Company developed Inventory Records: It's good business because proper inventory record keeping is a necessary tool for a jewelry business to be successful. Taking the time to establish and maintain accurate and up-to-date inventory records will save you time and money in the event of an insurance claim. If you have a loss, your inventory records will prove what inventory has been lost and its value so that your claim can be settled quickly. If you can't prove that missing items existed, the payment for your loss may be delayed or possibly denied. In addition, inventory records are required by your insurance policy. Recovering insured losses isn't the only reason to establish proper inventory records. Inventory records are useful in planning. They can indicate when to reorder merchandise, what's selling and what's not. Your records also can alert you to missing items and errors in entry, and they help deter internal theft. This guide provides information for retailers, wholesalers and manufacturers, with a specific section focusing on the unique needs of wholesalers and manufacturers. Because each jewelry operation differs in size, method of operation, and type of finished products, it's difficult to recommend one inventory system that will work for every firm. Many of the recommendations listed in this guide apply to retailers, manufacturers and wholesalers; some do not. Work...
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...Planning Practice Copyright © 2010 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775 All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please visit www.copyright.com or call (978) 750-8400. ACKNOWLEDGMENTS Statement on Responsibilities in Personal Financial Planning Practice Task Force Clark Blackman II, Chair (PFP Executive Committee) and Past Chair Dirk Edwards, Chair John Connell Charles Kowal Jerry Love Randy Ryan Scott Sprinkle Ken Strauss AICPA Staff Mark Koziel, Director (Specialized Communities) Andrea Millar, Sr. Technical Manager (PFP Division) Teighlor March, Senior Manager (Legal, Legislative & Regulatory Affairs) Sarah Bradley, Project Manager (PFP Division) 2 Contents Acknowledgments .................................................................................................................................. 2 Foreword ................................................................................................................................................ 4 Exceptions From This Statement............................................................................................................. 6 Responsibilities of Members in Personal Financial Planning Services Engagements .............................. 7 Professional Competence ..............................................................................................................
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...AUDITING AND ASSURANCE STUDY TEXT Copyr i ght ALL RIGHTS RESERVED. Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortransmittedinanyformorbyany means,electronic,mechanical,photocopying,recordingorotherwisewithoutthepriorwrittenpermissionofthe copyright owner. ISBN NO: 9966-760-23-7 © 2009 Strathmore University Press First Published 2009 Strathmore University Press P.O. Box 59857, 00200, Nairobi, Kenya. Tel: +254 (0) 20 606155 Fax: +254 (0) 20 607498 Acknowledgment We gratefully acknowledge permission to quote from the past examination papers of the following bodies: Kenya Accountants and Secretaries National Examination Board (KASNEB). v ACKNOWLEDGMENT ................................................................................................................. ii CHAPTER ONE ........................................................................................................................... 1 ThE GEnEral aUDiTinG EnvironmEnT .............................................................................. 3 CHAPTER TWO ......................................................................................................................... 23 ThE aUDiTor anD ThE CompaniES aCT............................................................................. 25 CHAPTER THREE ..................................................................................................................... 47 aUDiT planninG, ConTrol & rECorDinG (iSa 300)............
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...AUDITING DEFINITION Auditing can be defined as an independent examination of the books of accounts and vouchers of a business with a view of forming an opinion as to whether these have been kept properly according to the Companies Act and as to whether the statement drawn there from portrays a true and fair view of the company’s state of affairs at a given date. The above definition can be broken down as follows: i. Independent examination: this is conducted by a qualified accountant qualified according to the Companies Act. The qualified accountant must be independent of all parties with an interest in the company e.g. management, directors and third parties. His independence is very crucial because; a. This independence is a requirement of the Companies Act, Cap 486. b. The independence is a requirement of the Institute of Certified Public Accountants of Kenya (ICPAK) professional body for ethical reasons. ii. Books of accounts: according to the Companies Act, Cap 486, of the laws of Kenya, a limited company must maintain: a. Cashbook b. Asset register c. Ledgers d. Shareholders’ register The first three books are statutory books of accounts that must be kept by companies at their registered offices. iii. Vouchers: these are documents in support of transactions in the books of account e.g. an agreement, a receipt, invoice, debit and credit notes etc. the auditor will check a voucher for: a. Authorization:...
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...and privately held companies with assets greater than $500 million. Answer Terms: Sarbanes-Oxley Act Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills Topic: SOX 2) Which of the following is considered audit evidence? A) Oral statements Written Auditor made by management Communications Observation Y N N B) Oral statements made by management N C) Oral statements made by management Y Written Communications Y Auditor Observation Y Written Communications Y Auditor Observation Y D) Oral statements made by management N Answer Terms: Audit evidence Diff: Moderate Objective: LO 1-1 AACSB: Reflective thinking skills Written Communications N Auditor Observation Y 3) Evidence is paramount to audit and attestation engagements. List the four basic types of audit evidence. 4) The criteria by which an auditor evaluates the information under audit may vary with the information being audited. A) True B) False Terms: Criteria which an auditor evaluates information Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills 5) The criteria used by an external auditor to evaluate published financial statements are known as generally accepted auditing standards. A) True B) False Answer Terms: Criteria used by external auditor to evaluate...
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...IIE Module Guide ACCO230 ACCOUNTING 2A (DIPLOMA) MODULE GUIDE 2013 First edition: (2013) This manual enjoys copyright under the Berne Convention. In terms of the Copyright Act, no 98 of 1978, no part of this manual may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any other information storage and retrieval system without permission in writing from the proprietor. The Independent Institute of Education (Pty) Ltd is registered with the Department of Higher Education and Training as a private further and higher education and training institution under the Further Education and Training Colleges Act, 2006 (reg. no. 2009/FE07/003, prov. to 31/12/2014) and the Higher Education Act, 1997 (reg. no. 2007/HE07/002). © The Independent Institute of Education (Pty) Ltd 2013 - Page 1 of 82 IIE Module Guide ACCO230 DID YOU KNOW? Student Portal The full-service student portal provides you with access to your academic administrative information, including: an online calendar, timetable, academic results, module content, document reviews, financial account, and so much more. Module Guides or Manuals When you log into the Student Portal, the Module Information page displays “Module Purpose” and “Textbook Information” including online “Module Guides or Manuals” for each module for which you are registered. Supplementary Materials For certain modules, electronic supplementary material...
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...accordance with the agreement reached at the time the loan is made. You as a Professional Accountant This situation puts you in a very difficult position. On the one hand, you want to do the right thing and, in your opinion, that involves an in-depth study of the problem you have found. On the other hand, you are pulled in the direction of doing what your superior says to do because you must respect her position as your superior. You may want to discuss with your superior the potential implications of the irregularities that you have found and try to convince her that some additional effort to better understand what is going on may be very important. You may want to discuss this with a peer or another person not directly involved in your engagement but whose opinion you value. You may want to talk with a person higher up in the organization than your superior, although you should be careful to avoid creating a conflict with your superior. You probably should keep a record of the steps you have taken to resolve the situation and certainly keep your eyes open for a pattern of similar behavior that...
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... Appendix AICPA Released Questions……………….…………….…………….……..….Appendix AUD-2 Internal Control The following is an excerpt from the Roger CPA Review Text books, which are included with purchase of the Roger CPA Review course. Written and updated by your instructor, Roger Philipp, CPA, the textbooks are the perfect companion to our dynamic lectures. www.RogerCPAreview.com AUD-2 Internal Control The second standard of fieldwork states: “The auditor must obtain a sufficient understanding of the entity and the environment, including its internal control, to assess the risk of material misstatement (RMM) of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures.” For Financial Statement audits, the auditor expresses an opinion on the client's financial statements, not on their internal control structure. The reason the auditor is interested in the client's internal control structure is the...
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...THE EFFECT OF INTERNAL CONTROL ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF ECOBANK NIGERIA PLC) BY AMOO TEMITOPE GRACE ACT/2009/0036 ADEYIGA ADEBAYO ECN/2009/0005 BEING A RESEARCH PROJECT CARRIED OUT AND SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCES OSUN STATE UNIVERSITY, OSOGBO NIGERIA IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCES (B.Sc) DEGREE IN ACCOUNTING JULY 2013 1 CERTIFICATION It is certified that this research project, written by Amoo Temitope Grace with matriculation number ACT/2009/0036 was supervised by me and submitted to the Department of Accounting, Faculty of management sciences. Osun State University Osogbo, Okuku Campus. Mr J.O Oyewole Project supervisor Date PROF. Temi Ologunorisa Head of Department Date 2 DEDICATION This research work is specially dedicated to Almighty God in Heaven, the one who loves me dearly, unconditionally and eternally, the source and the strength with which I have been able to pull through the challenges that came with this work, for his protection and guidance over my life right from the inception and towards successful completion of this academic programme. Also, to my beloved parents; Mr and Mrs AMOO for their supports both financially and morally to accomplish the great task of passing through this practical project. My prayer to you is that you will eat the fruits of your labor in Jesus name (Amen). 3 ACKNOWLEDGEMENT Nothing...
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...cars. 11-2. The major controls that a company such as General Motors will consider in such a partnering relationship include: • A contract specifying the requirements of each party to the contract. For example, the contract should specify the following major requirements of the supplier: o Penalties for failure to deliver products on time. o Quality control requirements, including inspection and testing to be done either by the supplier or the purchaser. Most contracts require intensive inspection by the supplier. o Responsibility for consumer relation costs incurred because of defective parts. o Payment terms. o Prices. o Verification of receipt procedures. o Delivery responsibility, for example a just-in-time delivery system must specify the order and the configuration of the delivery. o Responsibility for costs incurred if...
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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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