Assessment Two- Business Organisations | Business One-Public Company | Business Two- Sole Trader | Business Three- Partnership | Number of Owners | Public- 5- InfinitePrivate 1-20 | Owned and operated by 1 person | 2-20(There are exceptions to this however such as accounting practices and medical practices) | Profit Sharing | Reinvested in the company or paid out to shareholders as dividends based on their share. | Owner retains profits | Profits and Losses are shared between partners depending
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1. DIRECTOR 1. WHO IS DIRECTOR? A company is a business entity whereby it is associated or collected of individual real persons and/or other companies, who each provided some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by
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1. The audit risk model consists of four parts. These parts are planned detection risk, inherent risk, control risk and acceptable audit risk. Planned Detection Risk- the risk that the audit evidence will fail to detect material misstatements which exceed a tolerable amount. This specific part of the audit risk model consists of the other three and will only change if one of the other three changes. This determines the amount of evidence the auditor plans to gather. Inherent Risk-The auditor’s
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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 this from happening again. Should auditors evaluate the soundness
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Analytic AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 Develop an understanding of the inventory management process. Topic: Overview of Inventory Management Process 2. A receiving report records the shipment of goods to customers. FALSE AACSB: Analytic AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Be able to identify and describe the types of documents and records
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changed the reporting of financial statements by making organizations include an internal control report. The reason for this report is for the purpose of “showing that not only the company’s financial data is accurate, but that the company has confidence in them because adequate controls are in place to safeguard financial data” (Sarbanes-Oxley Essential Information, 2012). Also at the year-end financial reports need to have an assessment of how effective the internal controls are in which the issuer’s
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relating to the financial statements of BL and explain how the conduct of an audit reduces each Information risk is the likelihood of improperly record information which end up being provided to decision makers. In this case I was able to identify two possible causes of information risk at Beaumont Limited: i. Not adopting proper internal control and formal accounting policies to prepare financial statements. An audit will reduce this risk by evaluating the management assessment of internal controls
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What are the primary and secondary reasons for conducting an evaluation of an audit client’s internal control? A. The auditor has two primary reasons for conducting an evaluation of a company’s internal control. 1) First, Sarbanes-Oxley (SOX) requires an audit of management’s assessment of internal controls for publicly traded companies. This type of audit is an integrated part of the financial statement audit. In some substances, the auditor issues three opinions: one on the company’s
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Commission Resources and Authority, Studies and Reports, Corporate and Criminal Fraud Accountability, White Collar Crime Penalty Enhancement, Corporate Tax Returns, and Corporate Fraud Accountability. This Act requires that top management assume responsibility for the financial records that are put out by the corporation. The have to sign off on the information before it is released. This is covered in Section 302. They are certifying that the report does not contain material untrue statements and
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that Nike’s subcontractors manufacture the shoes and the other products in sweatshops. This accusation though denied by the management of the Nike inc, however was seen by a report titled “48 hours” by Roberta Baskin. Besides this many other human right organizations like the global exchange and many others published their reports against the Nike incorporation. In response to these accusations Nike took many steps that included appointing a work assessment officer named Andrew Young, a former US ambassador
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