Marquez Zeigler February 20, 2012 Position Paper I agree that audit partner rotation is necessary and sufficient to best serve the accounting/audit profession and investors. Based on the downfalls of companies such as Enron, WorldCom, Tyco International, and a few others, it is essential companies have a rotational auditing system. In the past, companies have had minimal financial regulations, which probably contributed to companies rearranging numbers so nonchalantly. However, that all changed
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Those are given below: • Nike changed their minimum age limits from the International Labor Organization. But their existing workers employ under the former limits. • Nike contract factory will be audit by PricewaterhouseCoopers who specially trained on the code of conduct Owner’s Manual and audit or monitoring. • The next one is that ensure workers around the globe are
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conformity with generally accepted accounting principles, an auditor may express a: Qualified Disclaimer of Opinion an Opinion a. Yes No b. Yes Yes c. No Yes d. No No 3. Park, CPA was engaged to audit the financial statements of Tech Co., a new client, for the year ended December 31, 2008. Park obtained sufficient evidence for all of Tech's financial statement items except Tech's January 1, 2008 inventory balances, which are highly material. Park's
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contain an evaluation of the success of the internal controls. The auditing firms are required to confirm to that assessment. The auditing firm does this after reviewing controls, policies, and procedures during a Section 4040 audit, conducted along with an established financial audit. Roles that ethics plays in business today with the SOX Act require publicly traded companies to have a code of ethics. A code of ethics is important to promote honesty in business, avoid conflicts of interest and make
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different from the common public business enterprises in several important ways. They have different purposes, processes of generating revenues, stakeholders, budgetary obligations, and propensity for longevity. These differences require more stringent audit and financial reporting in order to provide information to meet the same legal and political compliance requirements used to assess government accountability and to make political, social, and economic decisions. Being subject to the constant scrutiny
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Audit evidence is all the information used by the auditor. Auditor’s opinion is based the information contained in the accounting records underlying the financial statements and other information. Management is responsible for the preparation of the financial statements based on the accounting records of the entity. The auditor should obtain audit evidence by testing the accounting records. However, because accounting records alone do not provide sufficient appropriate audit evidence on which to
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CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied
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ethical responsibilities of accountants; professional auditing standards; the audit risk model; the acquisition, evaluation and documentation of audit evidence; reports on the results of the audit engagement. Learning Objectives: When you complete this course, you should: Understand the audit process, including audit procedures, and audit reports Understand the professional responsibilities of CPAs Understand audit risk assessments and planning Be able to research auditing standards Be able
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1. Justify how the reporting requirements of the PCAOB reduce the chance of financial fraud. Basically, the goal of the Public Company Accounting Oversight Board is to improve quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. In order for this to happen PCAOB must refocus and remind auditors of the standards required of them regarding fraud and for them to be diligent about their
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| |To obtain appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of the | |financial statements; | |To conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
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