Audit and Assurance Services Chapter 1 1 Learning Objectives 1. What is auditing? Distinguish between auditing and accounting. Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA? Identify the primary types of auditors. 2 What is auditing? Evaluating 3 Nature of Auditing Auditing is the
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Choices 1. Professional guidance: a. Consult the AICPA Code of Professional Conduct. What components might guide a CPA working in a corporate environment? The AICPA established a Code of Professional Conduct which guides a CPA working in a corporate environment. The AICPA Code of Professional Conduct includes two sections: principles of professional conduct and rules of conduct. The principles of professional conduct provide the framework for the rules of conduct. The framework for the Code
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The Financial Accounting Standards Board (FASB) governs the preparation of corporate financial reports. This paper will reflect on the FASB conception, its accountability, and members of the board. Furthermore, in many ways, the FASB standards known as generally accepted accounting principles (GAAP), places limitations on business practices and financial reporting requirements; but it is required since accounting standards are crucial in a market where financial information should be transparent
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Case 1.6 NextCard Inc. Bryan Seabrook Saint Leo University Advanced Auditing ACC-412-CL02 Angela Sneed 28 March 2012 Case 1.6 NextCard Inc. When consumers and companies decide to invest in a company they are putting all of our trust in the companies that they are buying the stock from and the audit firms that audit those companies. When the consumers lose that trust then it is hard to trust other companies. In this case we will learn what went wrong and what steps can be made to prevent
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CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1–1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting
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The inspection report that I read is the Report on 2009 Inspection of PricewaterhouseCoopers LLP issued by the Public Company Accounting Oversight Board on August 12, 2010. The nature of the PCAOB’s findings includes the follow aspects: 1) The Firm failed to obtain sufficient competent evidential matter to support its audit opinion. In example of issuer A, due to deficiencies in the Firm’s testing of certain key assumptions underlying the cash flow projections, the reasonableness of the
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Anderson, Olds, and Watershed Certified Public Accountants 27 First Street, 2nd Floor Astoria, Florida 12346 September 5, 20xx Apollo Shoes, Inc. Larry Lancaster, CEO 1 Moccasin Drive Shoetown, ME 98765 Dear Mr. Lancaster: Thank you for the opportunity to provide you with some information that will help you understand how our accounting firm can be an asset to your business. Our firm will provide auditing and assurance services that will benefit Apollo Shoes. We will provide
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ACCOUNTING STANDARDS AND REGULATIONS ACCOUNTING STANDARDS & REGULATIONS During the year 2002, the accounting profession was subjected to a series of highly publicized scandals. For example, it was discovered that the prestigious Arthur Andersen firm had played a role in the fraudulent reporting practices that led to the bankruptcy of the Enron Corporation. Andersen accountants had helped the company hide its losses, and had shredded important documents that were relevant to the case. In June
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Final Project Similarities and Differences between U.S.GAAP and iGAAP – Intangible Assets The global economy is regulated by two main accounting systems: (1) United States Generally Accepted Accounting Principles, also known as U.S. GAAP, and the (2) International Generally Accepted Accounting Principles, also known as iGAAP. As the abbreviations dictate, U.S. GAAP are the standards that regulate U.S. accounting procedures and iGAAP are standards that regulate international organizations. Both
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Running Head: HIGH-RISK AUDIT CLIENT Assignment 4: Eastman Kodak Sarah Hescox Instructor: Mrs. Ashley Braun Harper, MS, CPA Advanced Auditing 06/16/2013 HIGH-RISK AUDIT CLIENT Current Financial Condition Based on its most recent quarterly report, that was issued April 29, 2013, Eastman Kodak’s current financial position seems strong with a net earnings of 283 million compared to the previous year’s loss of 366 million, however provided additional information, it is actually less than favorable
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