...Public Schools CHAPTER 16 TABLE OF CONTENTS Chapter 16 ____________________________________________________16.1 Audit Responsibilities __________________________________________16.1 Types of Audits______________________________________________________ __ 16.2 Financial Audits ___________________________________________________ 16.2 Single Audits _____________________________________________________ 16.2 Program-Specific Audits_____________________________________________ 16.2 Performance Audits ________________________________________________ 16.2 Auditor General Audits______________________________________________ 16.3 Management VS Auditor Responsibilities ____________________________________ 16.3 Selecting An Independent Auditor _________________________________________ 16.4 Preparing For Your Annual Audit __________________________________________ 16.5 Documents _______________________________________________________ 16.5 Financial Statements _______________________________________________ 16.6 Other Schedules And Reconciliations __________________________________ 16.6 Other Supporting Documentation _____________________________________ 16.6 Single Audit Requirements _______________________________________________ 16.7 Background ______________________________________________________ 16.7 Commonwealth Implementation ______________________________________ 16.7 Audit Scope ______________________________________________________ 16.8 Risk-Based Approach For Determining Major Programs...
Words: 3653 - Pages: 15
...Statement / Audit Report Review Follow Below Link to Download Tutorial https://homeworklance.com/downloads/acc-410-assignment-1-financial-statement-audit-report-review/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com Assignment 1: Financial Statement / Audit Report Review Due Week 4 and worth 240 points Select one (1) local government in your state or area and review the financial statements and audit report for the county or municipality. The financial statements of the government you selected should have at least three (3) funds. Refer to the continuing problem homework for Weeks 1 through 3 for this assignment. Write a three to five (3-5) page paper in which you: 1.Compare and contrast the comprehensive annual financial report (CAFR) of the selected local government entity with the city of Austin report from Week 1 homework. In your comparison, include: a.Publication method of the CAFR b.Audit and budget information in the CAFR c.The type of audit report issued d.Existence or non-existence of an internal audit function within the government entity 2.Prepare the analysis for the selected local government entity, including information on the introduction, financial section, and statistical section prepared in the city of Austin’s CAFR from chapter 2. 3.Analyze the methods used by the selected local government entity in comparing the budget-to-actual reports. Your analysis...
Words: 6670 - Pages: 27
...INTRODUCTION A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion. The audit opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements. The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation. Financial audits are typically performed by firms of practising accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors. Internationally, the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) is considered as the benchmark for audit process. Almost all jurisdictions require auditors...
Words: 7789 - Pages: 32
...Types of Audits To distinguish between the types of audits that may be used for each process of Kudler Fine Foods IT Systems, the auditor must first determine which audit is appropriate. There are different audits available for the processes at Kudler Fine Foods; including attestation, findings and recommendations, SAS 70, and SAS 94. The auditor will need to decide which audit is most appropriate for the Accounting Information System and the Retail Enterprise Management System incorporated into Kudler’s Systems. During an attestation audit, the auditor will provide assurance for a specified topic or issue for which the client is responsible. An assertion is made based on specified criteria, and the results are provided in a report. The findings and recommendations audit is used when, “implementing systems, security review, database application review, IT infrastructure and improvements needed engagement, project management, and IT internal audit services” (Hunton, Bryant, & Bagranoff, 2004, p. 217). This type of report does not include the auditor’s opinion, but any information pertaining to the work performed is included. The SAS 70 audit includes information pertaining to a company’s internal controls and is used when services, such as payroll are outsourced to an ADP. An ADP provides payroll services to companies at a lower rate than it would cost if the company were to handle this in-house. An SAS 70 audit is used when companies want to assure that they have implemented...
Words: 968 - Pages: 4
...The duties, status and liability of the auditor WHAT IS AN AUDIT?[1] The word “audit” comes from the Latin word audire which means “to hear” because, in the middle Ages, accounts or revenue and expenditure were “heard” by the auditor. An audit is the process of checking that the way an organisation presents information about its financial position (its ‘Financial Statement of Accounts’) is true and fair. In essence, ‘true and fair’ means that, in the auditor’s opinion, the company’s financial statements offer a true and fair view of its actual financial position, and that any assumptions they include are reasonable. We can say that, Auditing is works with evaluating organizations financial statements, systems, projects, process according to standards. It is also engaged with non-financial matters of an organization. Such audits can be performed to identify inefficiencies in an organization. Why Auditing:[2] Audits exist to add credibility to the implied assertion by an organization's management that its financial statements fairly represent the organization's position and performance to the firm's stakeholders. The principal stakeholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in knowing that the financial statements are presented fairly, in all material aspects. An audit is not designed to provide assurance of 100% accuracy; rather it...
Words: 9503 - Pages: 39
...the YELLOW box · Click on the down arrow next to departures expected · Checkout or extend any reservations. · Close out to the blue screen (main Opera page) 4. ___ Print Night Audit Reports · Miscellaneous (top) · Reports (left side) · Report Group – Drop down to Shift Reports · Highlight Downtime Reports · Click OK · Click Print · Separate the appropriate reports and staple: 5. ___ Check Phone Printer for any calls not posted and post them via the Cashiering Module's "Fast Posting" feature. Do a bucket check with the “Guest In House Rate Check” report you just printed out.(The Rate Check Report will also be used later in the morning to for Housekeeping Reports to mark the T&G Rate Rooms). 6.___ Start NIGHT AUDIT! · Click on End of Day (top) · Night Audit (left side) · Login User: YOUR USER NAME · Password: YOUR PASSWORD · Verify that the Business date is correct · Click Start! · If it asks you “Do you want to close cashier “YES”” · OK · OK · YES · OK Once the Night Audit starts it will pull up a screen of the programs that is currently running. Verify that it says Running / Completed in Green. NOTE: If any of these shows “FAILED” in red you must exit the night audit. Look for the room number or name shown at the bottom of the screen if the system...
Words: 746 - Pages: 3
...Section 5 Audit Process: Audit Planning To Fieldwork Section 5 documents how the Office of the City Auditor complies with standards related to reasonable assurance, significance, audit risk, and planning. This section provides guidance on the how to apply those standards in conducting audits based on the Citywide Risk Assessment model or requested audits. Specifically, this section will cover the initial planning phase of the audit (preliminary survey) that begins with start the audit, preliminary survey and risk assessment, and development of the audit program. The purpose of audit planning process is to generate information and ideas to better understand the audit subject, determine the audit objective, and to develop the audit field work program. Planning also involves estimating the time and resources necessary to complete the audit. The evidence gathered in background research and later fieldwork is documented in the working papers. Key outputs of audit planning include an audit background memorandum; audit scope statement; risk and vulnerability assessment document; and field work audit program. AUDIT PLANNING PROCESS The audit planning process can be divided into the following three phases: 1) starting the project, 2) preliminary survey (planning the audit and conducting risk assessment), and 3) developing the audit program. These steps are followed by fieldwork and reporting. Details of each of the steps are noted below. Audit Start City Auditor assigns staff to audit. City...
Words: 6307 - Pages: 26
...Auditing Exam 1 Review Ch 1 Nature of Auditing: * Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence b/w the information and established criteria. * Auditing should be done by a competent, independent person. Information and Established Criteria: * To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. Accumulating Evidence and Evaluating Evidence: * Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. Competent, Independent Person: * The auditor must be qualified to understand the criteria used and must be competent to know the types and amount of evidence to accumulate to reach the proper conclusion after the evidence has been examined. * The competence of the individual performing the audit is of little value if he or she is biased in the accumulation and evaluation of evidence. Reporting: * The final stage in the auditing process is preparing the Audit Report, which is the communication of the auditor’s findings to users. Distinguish b/t auditing and accounting: * Accounting is the recording, classifying, and summarizing of economic events for the purpose of providing financial information used in decision making. * Auditing is determining whether recorded information...
Words: 1056 - Pages: 5
...OUTLINE GENERAL OBJECTIVE To introduce students to the concept of the audit of financial statements and the issues surrounding the audit of such statements EXPECTED LEARNING OUTCOMES By the end of the course, the student is expected to be able to; a) b) c) d) e) f) Explain what is an audit and the qualifications and duties of an auditor Understand the legal and professional rules governing the audit and the auditor Able to design an adequate internal control system Able to design an audit plan and an audit program to conduct an audit Able to audit a computerized client Able to design an audit report Week Topics Content Time (Hours) Definition of auditing 3 Distinction between auditing and accounting Objectives of an audit Types of audits Appointment of an auditor Qualifications of auditors 6 1 GENERAL ENVIRONMENT AUDIT 2-3 THE LEGAL PROFFESIONAL AND Week Topics Content Time (Hours) Rights of auditors Dismissal and duties of auditors REQUIREMENTS AUDITOR 4 OF AN CONDUCTING AN AUDIT 5-6 ERRORS, FRAUD AND OTHER IRREGULARITIES 7 INTERNAL SYSTEMS CONTROL 8 9-10 CAT AUDIT EVIDENCE General audit steps 3 Accepting an audit engagement Letter of engagement Planning an audit Types of errors 6 Fraud Detection, correction and prevention of errors and fraud Role of the auditor in respect of detection and prevention of errors and fraud Definition and types of internal 3 control systems. Qualities of a good internal control...
Words: 537 - Pages: 3
...Types of Audits Each business process at Kudler Fine Foods has unique transactions and qualities. Therefore, a unique type of audit is required to meet specific circumstances for each process. The four main types of IT audits are attestation, findings and recommendations, Statement on Auditing Standards (SAS) 70 audit, and SAS 94 audit. Attestation An attestation is an agreed upon procedures audit. It requires the auditor to provide assurance on a specific subject matter and a conclusion on reliability. The auditor may make an assertion regarding an organization’s compliance with specific standards or requirements. The steps of an attestation audit are as follows: 1) a client makes an assertion, 2) the auditor examines and analyzes the client’s performance according to the agreed terms, and 3) the auditor reports the findings, or lack thereof, to the client (Hunton, Bryant, & Bagranoff, 2004). Findings and Recommendations A findings and recommendations review is generally considered as consulting or advisory services. A findings and recommendations review is often confused with an attestation. However, the auditor does not produce an opinion from this type of audit. Instead, the auditor provides a summary of the work performed in connection with the agreement. Common examples of findings and recommendations audits include system implementations, security reviews, IT improvement reviews, and project management. During a findings and recommendations review...
Words: 552 - Pages: 3
...Accounting is considered as the major helping hand to form a successive management which needs to report and analyse the business transactions. Accounting is a pathway of measuring success through the designing projects as measuring the outcomes of the projects in line with the target goal of the organisations (Elliot, Barry & Elliot, Jamie, 2004). Organisations maintain their financial reports with the help of accounting theories and policies. The international financial reporting standards also help to keep the accounting practice effectively, efficiently, and correctly. The efficient management will be built if the organisation follows the international reporting standards accurately. As a mandatory course unit of myself I need to prove my understanding about the financial systems and auditing through this report. I will gradually demonstrate my understanding on the purpose, use, importance of accounting records, accounting systems, computerised accounting system, manual accounting systems, business risk, audit risk, internal and external control systems, importance of auditing, and planning audit assignment as well as preparing audit report in the body part of my report. Task One Purpose and Use of Different Accounting Records Accounting records represents the management of all source of information in different records books. These records are ledger, journals, bank statements, adjusting journals, statement verification, invoice, brochure, and etc. The purpose and...
Words: 2394 - Pages: 10
...of an audit report. An audit report is a crucial part in the auditing process. It is a guide for users of the financial information. Auditors issue opinions on the financial statements based on certain criteria. The main thing is if the financial statements are presented in accordance to GAAP. Also, modifications can occur after the opinion is issued. Modifications vary depending on the issue at hand. Changes in principles or a report involving other auditors are a few. More will be addressed in the paper. An audit report is different is many ways. Even for one company, the audit report may not be the same every year. Modifications and Opinions in Audit Reports Every publicly traded company gets audited. Pop Iuliana (2012) says, “The purpose of an audit is to improve the degree of trust of the users across the financial situations” (p.454). Companies must present their financial statements in accordance to Generally Accepted Accounting Principles (GAAP). The final stage of an audit is writing an audit report. An audit report “expresses an opinion over the audited financial situations so that any user of this information is able to take decisions based on it” (Iuliana, 2012, p. 453). A standard audit report contains eight parts. The eight parts are report title, audit report address, introductory paragraph, management’s responsibility, auditor’s responsibility, opinion paragraph, name and address of CPA firm, and audit report date...
Words: 2456 - Pages: 10
...Auditor’s Responsibility when Issuing a Report Abstract The objective of an Independent auditor is to render an opinion about whether the financial statements of a company, legal entity or an organization have been fairly presented in all material respects and in accordance to the generally accepted auditing standards. In expressing an auditor’s opinion, they will typically issue one of four types of reports, an unqualified report, qualified report, an adverse opinion, or a disclaimer of opinion. In contrast, a qualified report indicates that the auditor has concerns about matters affecting the financial statements (this could include the client’s accounting policies or the method of their application or the adequacy of financial statement disclosure) or the limited scope of the auditor’s work. An adverse report is issued when an auditor “has concluded that the audited financial statement do not fairly represent the organization's financial position or financial performance, and that there are significant departures from GAAP” (Schmidt, 2013). A disclaimer of opinion also called disclaimer of report is issued when the auditor has not been able to obtain the sufficient audit evidence on which to base their opinion. Any of the reports issued by an auditor can bring legal consequences against the auditor and/or the firm they are employed with. Auditor’s Responsibility when Issuing a Report The objective of an Independent auditor is to render an opinion about whether the...
Words: 1569 - Pages: 7
...& 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 occurs when a client does go bankrupt but prior audit reports are without going-concern modifications. The authors identify three different audit firm sizes: big 4, national...
Words: 1786 - Pages: 8
...of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. * Information and established criteria * To do an audit, there must be information in a verifiable form and some standards by which the auditor can evaluate the information * Canada Revenue agency auditor – an auditor who works for the Canada Revenue Agency and conducts examinations of taxpayers’ returns * Accumulating and evaluating evidence * Evidence is defined as any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria * It is important to obtain sufficient quality and volume of evidence to satisfy the audit objectives * Competent, independent person * The auditor must be qualified to understand the criteria used and competent to know the types and amount of evidence to accumulate to reach the proper conclusion after the evidence has been examined * Independent auditors – a public accountant or accounting firm that performs audits of commercial and non-commercial entities * Internal auditors – an auditor employed by a company to audit for the company’s board of directors and management * Reporting * Auditor’s reporting – the communication of audit findings to users * Accounting – the recording...
Words: 844 - Pages: 4
