Lakeside Auditing Case Study Case 1 Prepared by: January 27, 2011 1: An independent annual audit can provide credibility to information, and this could be very helpful for decision making. In this specific case, the owner of the Lakeside requires an independent CPA firm to perform an annual audit because the owner wants to show the public a “good-look” of its financial statements; since he would like to receive more capital by making his company public. In addition, good-looking financial
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The accounting fraud at WorldCom was the result of corporate supremacy, individual liability, and an ultimate collapse of their system of in-house controls that can all be attributed to greed, manipulation and a lack of accountability for top executives. Bernie Ebbers, at the helm of it all, lacked focus, strategic direction, and led WorldCom with a consistently declining moral compass. It is thought that the ethical turn down of WorldCom’s top executives began with the U.S. Justice Department’s
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CPA Exam Multiple-Choice Questions on Auditors’ and Accountants’ Reports 1. (N95,62) Which of the following statements is a basic element of the auditor’s standard report? a. The disclosures provide reasonable assurance that the financial statements are free of material misstatement. b. The auditor evaluated the overall internal control structure. c. An audit includes assessing significant estimates made by management. d. The financial statements are consistent with those of the prior
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Memorandum to Apollo Shoes TO: APOLLO SHOES CC: ARNOLD ANDERSON, DARLENE WARDLAW, BRADLEY CRUMPLER & KARINA RAMIREZ FROM: ADAM MARTINEZ of R.E.A.L Auditing DATE: October 20th, 2012 SUBJECT: MATERIALITY The definition of materiality can differ amongst independent auditors, however it remains one of the basic and major concepts of auditing. Research has actually shown that auditors do not have a consensus meaning of what is “material.” The way we will describe it will be as such: an amount
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deciding to accept an engagement. (AU 315.08) Specific and reasonable inquiries should be made of the predecessor auditor on “information that might bear on the integrity of management. Disagreements with management as to the accounting principles, auditing procedures or other similarly significant matters. Communications to audit committees or others with equivalent authority and responsibility regarding fraud,
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Determine the internal audit and reporting standards,preparing audit quidelines and improve procedure, • The organization at the branch to check the availability of sales and marketing strategies of projects, • Auditing all activities which association rules according main purpose implement, • Auditing ledger, accounts and records executing in financial regulations and financial records based on the income and expense documents to check whether they are true, • To ensure cooperation with the external audit
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Unethical accounting behavior has been on the forefront since the 1980s, in the United States. Unethical behavior is when someone takes advantage or manipulates another without their knowledge. Unethical behavior normally starts within upper management and transcends to the other employees. Unethical behavior consists of bribery, misusing funds, or manipulation of financial reports. When management or accountants knowing and unknowingly has overstated the value of the company’s assets and revenues
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REFLECTION PAPER ON “THE IMPACT OF EMERGING INFORMATION TECHNOLOGY ON AUDITING” In our modern world today, everything is possible... Everything is faster. But based on this fact, do we really know the influence of evolving “Information Technology” on our society specifically in the dynamics of businesses nowadays? To respond with this, IT has affected many sectors or aspects especially auditing. Audit is an evaluation of a person, organization, system, process, enterprise, project or product to
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the crisis at Enron. The two main are the top executives at Enron and the auditors at Arthur Andersen. The auditors at Arthur Andersen clearly had a conflict of interest. Andersen earned more form other accounting services from Enron than from auditing services performed. This would certainly lead to the notion that Andersen could and probably did alter the financial reports of Enron to their own benefit. The top executives at Enron were also just as responsible as each of them were profiting
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You have been with Zaird & Associates for approximately three months and are completing your work on the BizCaz audit. BizCaz produces pullover knit shirts to address the business casual market for both men and women. Although your experience has been limited, an unexpected staff resignation has resulted in your working directly with the engagement's in-charge senior on inventory. This has been a learning experience for you, because you have helped perform various tests of controls which may be summarized
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