...Maxi-Cosi Australia, sold more than a quarter of million car seats in Australia, recalled about 6000 units of its products due to safety concerns. The company may bear financial distress of cost of recall, suffer from damage to brand and customer goodwill, therefore audit risk exists as Maxi-Cosi would exaggerate and misstate the financial statements. Additionally, after Maxi-Cosi Australia has illegally selling 5000 of its Euro A4 model without having safety and standard certification, the company officially guaranteed the safety through Facebook, unfortunately, followed by a formal recall. The ACCC watchdog will consider whether the company engaged in misleading practices for creating a false or misleading impression through media or online (Taylor and Branley 2015). The ACCC rules if the company claims that goods meet specific standards, those claims must be true, and could not make false claim about quality (ACCC 2015). Because Maxi-Cosi Australia made claims that may engaging in misleading practice and face potential ACCC lawsuit by contravening the Customer Act. Maxi-Cosi Australia may underestimate their provision for Litigation where auditor has to notice. Key account 1 : Sales returns As mentioned above, the risk related to the car seats recall could directly affected and cause misstatement in the sales return account because the recalled models have safety issues which is the most concerned prospective for parents. Therefore a large scale of parents will return...
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...Auditing Standards Essay: Auditing Planning Broadly speaking, audit planning is specific guidelines for auditor to perform an audit. Audit planning is usually conducted at the beginning stage of audit process. AICPA (American Institute of Certificate Public Accounting), PCAOB (Public Company Oversight Board), and IFAC (The International Federation of Accountants) are organizations or non-profit corporations who contributes to developing standards and guidance in auditing area, including standards for audit planning. Thus, this essay will discuss the requirement, and compare and contrast, of standards and guidance for auditing planning that has been issued by them; as well, analyze the impact on the performance of the audit. AICPA, by its publication titled AUC Section 300, addresses guidance for auditors in planning an audit. This contains introduction, objective, requirements, and application and other explanatory material. First, the introduction part includes the scope in planning the audit, the role and timing of planning, and the effective date of this standard. The scope of planning an audit explains the responsibility of the auditor to plan an audit of financial statement. This section also mentioned to refer to section 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) for further information related to the auditor’s responsibility. The role of planning and timing explains the adequate benefit in planning...
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...Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited financial statements...
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...an international professional services network that provides industry focused assurance, auditing, consulting and tax services for a variety of companies with the majority of their revenue coming from business to business relationships. The firm was established in 1998 after a merger between Coopers & Lybrand and Price Waterhouse and the name was shortened to PwC for rebranding purposes. (“Big four (audit firms)”1) According to company revenue records in 2014, PwC is currently the second largest professional services network in the world, and are considered one of the big four auditors, competing with Deloitte, EY and KPMG. (“Big four (audit firms)”1) In addition, PwC has firms across 157 countries with over 195,400 employees. Their total revenue in 2014 is around 34 billion dollars with 15 billion generated by their assurance service, 8.8 billion by their tax services, and 10 billion by their consulting services. (“Big four (audit firms)”1) Types of competition this enterprise faces: PwC is one of the big four auditing companies along with Deloitte, EY and KPMG, therefore making it an oligopoly. Oligopolies provide very similar products, where smaller firms follow the lead of the top four auditors in the industry and consist of fairly inelastic demand. (Richardson 1) Another reason PwC is classified as an oligopoly is because there are many barriers to establishing an auditing company with an established network of services and only the top four have managed to survive...
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...University of Phoenix ... Ocean Manufacturing, Inc.: The New Client Acceptance ... www.freecasestudysolutions.com/case-study-Ocean-Manufacturing-Inc-... Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision Ocean Manufacturing, Inc. is recommended as a ... ORDER NEW SOLUTIONS ... Solution Manual for Auditing Cases An Interactive Learning ... testbanksfor.com › All test banks and solution manuals Download Solution Manual for Auditing Cases An Interactive Learning Approach 5th Edition by Beasely. Solution Of Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/solution-of-ocean-manufacturing.../page-0 Free Essays on Solution Of Ocean Manufacturing Inc for students. ... ACCT 805AE Case 4 Ocean Manufacturing, Inc The Osprey Group Feb 21, ... Auditing: r c aSe S t h at diSc uSS topicS rel ated to thiS Section 1.1 Ocean Manufacturing, Inc. . Case 1 1 Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/case-1-1-ocean-manufacturing-inc/page-0 Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision Ocean Manufacturing, Inc. is recommended as a prospective audit client of Barnes ... 60 Free Essays on Ocean Manufacturing Inc The New Client ......
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...Introduction The recent general crisis taking place around the world has many causes behind it; one of them being is financial scandals. The financial scandals are making false or incorrect attempts with the financial records of company for benefit or hiding scams. Auditing failure was another reason behind general crisis, auditing failures occurs when auditor declares that a company’s financial statements are true and fair but comprises many frauds or disclosed information. This eventually resulted in questioning of auditors role in providing true and fair view of financial records around the world. The motive behind writing this essay is to gain more information and knowledge about Auditing as whole. In this essay we are going to discuss issues relating to financial scandals caused general crisis of confidence in the integrity of the whole system of corporate accountability, classifying auditors role and the efficiency of the auditing process, Also selecting a company for example Parmalat, analyzing and discussing the issues that challenged the credibility of audit reports issued by auditing firms like Grant thorton and Deloitte & Touche. In December 2003, The parmalat was involved in a giant accounting fraud of worth more than $10 billion. The SEC states that the Parmalat scandal was one of the brazen and major financial frauds in the history. In eightees Parmalat became popular in dairy markets and expanded its operation in other food markets as well. In 2001, the...
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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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...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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...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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...Essay 1. There are two different auditing functions internal auditing and external auditing. Internal auditors are a company’s own accounting employees that perform the audit. On the other hand, external auditors are from outside of the company and work for an independent CPA firm that performs an external audit. Internal auditors report to top management positions such as the Audit Committee of the Board of Directors. The internal auditing function involves five main evaluations. 1) Employee compliance with organizational policies and procedures, meaning that employees are not breaking or violating the company’s rules. 2) Effectiveness of operations, meaning that the company’s controls and production are operating as efficiently as possible. 3) Compliance with external laws and regulations, meaning that the company’s procedures and operations do not violate any governmental or business laws. 4) Reliability of financial reports, meaning that the financial reports are not biased or construed in a way that would cause misrepresentation. 5) Internal controls, this means that the company is protected (as well as possible) against fraud, theft, and corruption. Overall, the internal audit function checks the efficiency and integrity of almost the entire company. The internal audit benefits the company’s management and employees to check and ensure that company procedures are efficient and legal. The company would rather have a mistake or fraudulent information be caught by the internal...
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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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...EXAM COVER SHEET NOTE: This exam paper may be RETAINED by the student EXAMINATION DETAILS Course Code: Course Description: Date of exam: ACCT1111 Auditing and Assurance Services 28/10/2008 Start time of exam: 9:15 AM Duration of exam: 3hr 15min Total number of pages (incl. this cover sheet) 8 ALLOWABLE MATERIALS AND INSTRUCTIONS TO CANDIDATES 1. Write your full name and student number on each examination booklet together with the number of examination books used. Students must not write during reading time. 2. This is a CLOSED BOOK Exam. 3. Commence each question on a new page. Carry out the instructions on the front cover of the examination script book and the front of this exam paper. 4. Non text storing calculators are allowed. 5. Bi-lingual dictionaries are not allowed. 6. No electronic devices such as mobile phones, laptop computers, electronic dictionaries etc. are permitted to be taken into the exam room. 7. The examination paper contains the following questions: Section A ONE essay questions 25 marks Section B TWO short answer questions 15 marks Section C FIVE application questions 60 marks Totalling 100 marks 8. To obtain a pass in this course, candidates must achieve at least 50 marks overall and obtain at least 50% of the total marks on this examination paper. 9. Attempt ALL questions and all parts of questions. 10. No dictionaries are allowed in this examination unless duly authorised as a special consideration by the Course Coordinator...
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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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...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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...University of Amsterdam Faculty of Economics and Business Msc. Accountancy and Control Assurance Assurance: Essay Assignment Assigned article: Geiger, M.A., & Rama, D.V. (2006). Audit Firm Size and Going-Concern Reporting Accuracy. Accounting Horizons, 20(1), 1-17. Additional articles: Carcello, J.V. & Neal, T.L. (2000). Audit Committee Composition and Auditor Reporting. The Accounting Review, 75(4), 453-467. Geiger, M.A. & Raghunandan, K. (2002). Auditor Tenure and Audit Reporting Failures. Auditing: A Journal of Practice & Theory, 21(1), 67-78. Name: Karlijn Dirks Student number: 10674837 Tutorial Group: 2 fulltime Lecturer: drs. Francesco Campisi RA Date: 10 February 2016 Paper: 8 * Summary The papers that will be discussed in this essay all revolve around auditor reporting. Especially about issuing going-concern modified reports in relationship with different variables. The variable discussed in the first paper is audit firm size. For the second paper auditor tenure is the variable and for the final paper audit committee composition is the variable that will be looked at. The rest of this section will provide summaries of the three articles. Paper 1. Geiger & Rama (2006) investigate whether audit firm size affects the accuracy of going-concern reporting. They look at two different type of errors, type I errors occur when a going-concern modified report is issued but the client does not go bankrupt. A type II error...
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