Date: October 31, 2009 To: From: Subject: SAS 99 SAS 99 is a generally accepted auditing standard, “Consideration of Fraud in a Financial Statement Audit”, that discusses types of fraud possible in financial statements and analytical procedures relevant to finding and correcting fraudulent statements. It establishes standards and provides guidance to auditors to help them plan and perform their audits to obtain reasonable assurance about whether the financial statements are free of material
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alter these checks, and the cheer ability to miscount items due to sheer volume. Phar-Mor was capable of misleading their external auditors because the auditors of a retail store are not required to physically examine the inventory in each store. The auditing firm only examined inventory in four of the one hundred and twenty nine stores that existed. Phar-Mor also knew in advance which locations were going to be audited which allowed them to be able to fool Coopers & Lybrand for several years. C) Audit
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the correct cash balance, and auditing the bank reconciliation ensures that the reconciled cash balance reflects correct adjustments. Step 1 Test mathematical accuracy. A bank reconciliation is a working paper in which a business applies various adjustments, such as deposits in transit, outstanding checks, bank charges and credits to both a bank statement balance and a book recording balance and find agreement between the two sets of cash records. In auditing bank reconciliation, the auditor
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Accounting Information System Tutorial 7 – Audit and Corporate Governance Instruction: Answer the following questions 1. What are the differences between COSO and COBIT internal control framework? At a high level COSO is focused on processes and controls for financial reporting, while COBIT is focused on IT When we think of most organizations, these often go hand and hand (financial information is often supported by IT in that the information relies on systems and applications (i.e. storage, recording
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A financial audit is conducted to provide an opinion whether financial statements (the information being verified) are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organization. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the
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Solutions Manual to accompany Auditing: a practical approach 2nd edition by Jane Hamilton CHAPTER 2 Ethics, legal liability and client acceptance [pic] John Wiley & Sons Australia, Ltd 2013 Chapter 2 –Ethics, legal liability and client acceptance REVIEW QUESTIONS 2.11 Explain how compliance with each of the five fundamental principles in APES 110 contributes to the ability of the auditor to discharge the duty
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Answers to Questions 1. The substance-over-form principle states that the true economic nature of a transaction should determine how it is reported on a company’s accounting records, rather than its legal form (Donaldson, 1964). This concept aims to undercut certain transactions such as related party transactions that are solely to distort profitability, rather than a true economic transaction between two parties. The auditor is responsible for the review and testing of the client’s accounting
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The successor auditor could speak to the predecessor auditor, local attorneys, other CPAs, banks, and other businesses. For prospective clients that have previously been audited by another CPA firm, the new (successor) auditor is REQUIRED by auditing standards to communicate with the predecessor auditor. The burden of communication rests with the successor auditor but the predecessor is required respond. The predecessor does have to get the client’s permission before making communication with
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provided and continue to provide various auditing and assurances services to our clients. I have extensive background in retail industry. I am writing this letter to confirm our upcoming arrangement with Apollo Shoes and briefly introduce you to our company. Anderson, Old, and Watershed, CPAs, LLC is a nationally renowned firm that offers complete set of services design to help businesses achieve and exceed their business goals. Our services include; * Auditing & Assurance Services * Accounting
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Jocelyn Lin- 42884462 1. Case 1-2 Part A, D and F Explain how each situation would affect your overall audit plan. Include reference to the nature and extent of audit evidence, which need to be accumulated. A) The civil unrest in Country X would impose various strains upon the planning of an audit. Firstly, due to communication blackouts, the level of information ascertained by the auditor would be very limited, which could potentially affect the auditor’s professional opinion on materiality
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