Case 1-2: Cutting Corners 1. Discuss why each of the following options might be considered the wrong thing to do: a) Skip a portion of the count and guestimate. * The problem with guestimating the totals of the inventory count on the sample sections is that, during last year’s audit, Rick made a guestimate for the last few aisles of paper. Continuing to make guestimates will fail to prove that the system’s inventory count is correct. Therefore, a material misstatement of inventory could
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MODULE B Professional Ethics LEARNING OBJECTIVES | | | | | |Review |Exercise, Problems, | | |Checkpoints |and Simulations
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responsibility to express his or her opinions of the financials of the organization. Furthermore, the auditor has a responsibility to his or her profession to comply with all standards recognized by American Institute of Certified Public Accountants (AICPA). The Secutires Exchange Commision also has a number of infuences on the disclousrue requirements of an auditor. However, the Public Company Accoutning Oversight Board has the full obligation of creating and maintain the standards of auditing
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established by the Financial Accounting Standard Board (FASB), the American Institute of certified Public Accountants (AICPA) and the Accounting Principle Board (APB). The SEC Is federal agency established to “help develop and standardize financial information presented to the stockholders” (Kieso 2007 pg. 6). It is responsible to enforce financial principles created. The FASB, the AICPA and the APB are institution formed by the private sector; the SEC believed that standards and principles should be
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1 Financial Reporting Overview Chapter 1 is an overview chapter covering accounting users, financial reporting, GAAP, accounting organizations, the conceptual framework, accounting careers, and ethics. The topics are wide ranging and very heavy on the new terminology side of things. Although it is a good chapter for introductory purposes, the concepts and organizations covered are so extensive that it will make a good chapter to come back to later, or at the end of intermediate accounting
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analytical procedures. Keywords: analytical procedures, audit planning. INTRODUCTION Professional audit standards require auditors to perform analytical procedures during the planning and final review stages of each financial statement audit (AICPA 2012, AU 329; PCAOB 2012, AS 12). This instructional case focuses on analytical procedures performed during audit planning. The purpose of performing analytical procedures early in the audit is to enhance the auditor’s understanding of the client’s
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CHAPTER 21 AUDITING INTERNAL, OPERASIONAL, DAN PEMERINTAHAN AUDITING INTERNAL Definisi Auditing Internal Auditing internal adalah aktivitas pemberian keyakinan serta konsultasi yang independent dan objektif, yang dirancang untuk menambah nilai dan memperbaiki operasi organisasi. Auditing internal membantu organisasi mencapai tujuannya dengan memperkenalkanpendekatan yang sistematis dan berdisiplin untuk mengevaluasi serta meningkatkan efektivitas proses manajemen risiko, pengendalian, dan pengelolaan
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up for a reason not to accept the client. 4) a) Barnes and Fischer will be able to provide help with the IT and financial statements audit according to the AICPA as long as they merely help implement and don't design the software. b) The situation doesn't violate the AICAP. This is because of rule 101 of the AICPA which says materiality is not to bw considered in a case of direct financial interest on the part of the auditor. If indirect like this case then materiality is considered
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informative and useful to present to potential investors and creditors- they use different approaches to achieve this goal. GAAP was created by the Financial Accounting Standards Board (FASB) in 1973. It was created to work in accordance with the AICPA (American Institute of Certified Public Accountants) Code of Professional Conduct,
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The Ethicality of Excello Telecommunications Cody S. Smith ETH/376 April 22, 2013 Ding Hardin The Ethicality of Excello Telecommunications Excello Telecommunications has been a profitable company for many years, but recently the competitive landscape has become tougher. Competition from overseas manufacturers has lowered Excello’s market share and profits. For the first time it looks as is Excello will not meet earnings estimates. This information directly impacts bonuses, stock options
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