Accepted Auditing Standards Joey Wines Franciscan University Generally Accepted Auditing Standards Generally Accepted Auditing Standards, also known as GAAS, is a rather broad topic with many guidelines to follow. An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. A short definition of GAAS is the set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency
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rules and laws that have been put in place for accountants. Lastly accountants have a responsibility to perform their obligations and duties by the code of conduct and to the code of ethics. We will start off with the client. The client by definition is the person who pays the professional or organization for services; the person who engages the professional for their advice or services they render. (Legal Dictionary) For these services the client must cooperate with the accountant in every aspect the
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Controls needs to be in compliance with certain laws and accounting regulations in order to maintain operations. These laws and regulations are the Sarbanes-Oxley (SOX) act of 2002, Generally Accepted Accounting Principles (GAAP), and the AICPA Code of Conduct (the Code). These regulations are the tools that auditors need to comply with while performing their responsibilities during an audit for the engaged company. Sarbanes Oxley Act The Sarbanes-Oxley (SOX) Act of 2002 was created because of unethical
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his or her objectivity and to support user reliance on the financial reporting process and to enhance capital market efficiency. However, it is not that simple to be ethical in public accounting profession. According to AICPA Code of Professional Conduct, there are mainly five potential threats to auditor independence: intimidation threat, self-interest threat, self-review threat, advocacy threat and familiarity threat. In my opinion, intimidation threat and familiarity threat are the
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the strict rules and regulations in place they will get caught fast. Given PCAOB oversight of accounting firms and the AICPA code of conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity. The PCAOB and AICPA has done a good job on the code of conduct but it doesn’t completely stop all fraudulent activity. I believe in my opinion you are still going to have fraudulent activity
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The purpose of this memo is to help explain why a subsidiary would be set up as a corporation. When looking into deferred taxes, it is imperative to look into what the Financial Accounting Standards Board (FASB) has to say about the subject. " deferred tax liability is recognized for temporary differences that will result in net taxable amounts in future years." ("Financial Accounting Standards Board," n.d.). More simply stated deferred tax is a tax that is paid at a later period (ex. income
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the purchase accounting for the merger. B.52 Other Responsibilities and Practice Cases (refer to Rule 301 and 502 of the AICPA professional code, pages 610-611 and 613-614 – There is no need to read the entire Module B). Read the following cases. For each, state whether the action or situation shows a violation or potential violation of the AICPA Code of Professional Conduct; if so, explain why an cite the relevant role or interpretation. a. CPA Ron Stout completed a review of the unaudited
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Accounting Ethics This paper will discuss the public perception of CPAs in today's society, pitfalls that they may encounter, methods to prevent some of these negative behaviors and consequences they may face should they fall short. Most "Who Do You Trust?" surveys rank politicians, lawyers and used car salesmen at the bottom and certified public accountants at the top. That is because the CPA profession has a squeaky clean image--anal-retentive little wimps who wear thick glasses and cannot
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Assignment 2: Litigation, Censures, and Fines Tracy Cranden Professor Slater ACC 499 Due: August 25, 2014 1. Analyze the primary accounting issues which form the crux of the litigation or fine for the firm, and indicate the impact to the firm as a result of litigation or fine. Provide support for your rationale. Ernst & Young was fined $2 million to settle charges relating to audits conducted for Medicis in 2005, 2006, and 2007. The primary issue that made this case arise was Ernst
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in appearance and independence of mind, is presented by the rules of the AICPA code of professional conduct. Every practitioner in public accounting profession is required to keep their independence and objectives; however, independence area is so complex that not all specific situation can be answered by AICPA. Instead, in most situations, the public accounting firm and auditors should make their own decisions by professional judgments to avoid possible threatens to independence. This is a case study
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