auditor take in to account the group involved in the audit process g. Work Performed by a Component Auditor: Yes, No, or N/A vii. Is the auditor in compliance with the outlined auditing processes h. Auditor Specialist, If used: Yes, No, or N/A viii. Was the use of professional reference properly documented, i.e.: engineer, environmental consultant, etc. i. Internal Control and Control Risks: Yes, No, or N/A ix. Were internal controls and risks properly
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4 Cash and Internal Controls Answer true-or-false questions about occupational fraud (LO1) E4-1 Below are several statements about occupational fraud. 1. For most large companies, occupational fraud is minimal and internal controls procedures are unnecessary. 2. Managers have a variety of reasons for manipulating the numbers in financial statements, such as maximizing their compensation, increasing the company’s stock price, and preserving their jobs. 3. Internal control procedures include
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state and federal crimes for which the violation of any two in a related pattern over a 10-year period can lead to criminal and/or civil liability with criminal penalties of fines up to $25,000 and 20 years in prison; part of the Organized Crime Control Act (OCCA) of 1970. -The act was designed to combat organized crime, forbids certain organized gambling, and to allow the prosecution of criminal leaders who may not have been directly involved in a series of criminal acts but whose criminal organization
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4 Overview of Module 3: In your prerequisite auditing course, you learned that the financial statement auditor conducts the audit by preparing an audit plan in the context of an overall audit strategy. This strategy assesses risks, taking into account the size of the organization, the complexity and nature of client operations, and the objectives of the audit. This module builds on your understanding of the audit risk model and the audit process. The focus is on auditing the business as management
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Guide to Internal Controls Table of Contents Overview – Fiscal Responsibility: Campus Philosophy on Fiscal Responsibility Key Concepts of Internal Control Components of Internal Control Suspected Theft or Misuse of University Assets Key Internal Controls: Segregation of Duties Reviews by Management Reconciliations Approvals Assets Bank Accounts Petty Cash Cash, Check, Credit Card Receipts Gifts
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Accounting Professor Michael DeMarco September 26, 2010 Introduction In order to conduct a substantial audit of Apollo Shoes the auditor must obtain a sufficient understanding of the entity and the entity’s environment, including the internal control. The understanding of the entity and its environment helps the auditor in a variety of ways throughout the audit, including establishing materiality, considering appropriateness, and designing audit procedures that can facilitate the growth of
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CONTROL AND AIS (Version 1 – Brief, just for the exam) Overview of Control Concepts * Internal Control - plan of organization and the methods a business uses to safeguard assets, provide accurate and reliable information, promote and improve operational efficiency and encourage adherence to prescribed management procedures. * Management Control - broader than internal control 1. Integral part of management responsibilities. 2. Is designed to reduce errors and irregularities
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industry specific software, we need to set a system of internal controls and to clearly outline the risks that are inherent in these systems. To begin, internal control systems are the various methods and measures designed to safeguard assets, to check the accuracy and reliability of accounting data, to promote operational efficiency, and to encourage adherence to prescribed managerial policies. First, there we will identify the risks and internal control points by incorporating these risks into the flowcharts
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systems - used to collect qualitative as well as quantitative information for decision making within organizations Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions 2. How is a flowchart used? A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations
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Guide to Internal Control Over Financial Reporting The Center for Audit Quality prepared this Guide to provide an overview for the general public of internal control over financial reporting (“ICFR”). The Guide explains what public company ICFR is and describes management’s responsibility for implementing effective ICFR. The Guide also discusses the responsibilities of the audit committee to oversee ICFR and of the independent auditor to audit the effectiveness of the company’s ICFR.
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