Questions for Midterm Exam 1) A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the: A) inherent risk. B) acceptable audit risk. C) statistical risk. D) financial risk. Answer: B 1) بمقياس لمدى رغبة مراجع الحسابات أن تقبل أن البيانات المالية قد يمكنه ماديا بعد اكتمال عملية المراجعة وقد تم إصدار رأي غير متحفظ: A) المخاطر الكامنة. ب) مخاطر المراجعة مقبولة
Words: 8950 - Pages: 36
Deanna Fletcher Regulations: AC502 Final Term Paper Kaplan University March 20, 2015 Regulations: Accountants Responsibilities Accountants have many responsibilities in different areas. They have responsibilities to clients, to thirds parties, and to the government. They have a responsibility to know the regulations, 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
Words: 2623 - Pages: 11
article there are six specific sections within the Sarbanes-Oxley Act that effect just the client’s role as a buyer and the audit firm’s role as a seller. The six specific sections are 201: Prohibited Auditor Activities, 203: Audit Partner Rotation, 204: Auditor Reports to Audit Committees, 206: Conflicts of Interest, 301 Public Company Audit Committees, and 407 Disclosure of Audit Committee Financial Expert. Each of these affects the auditor’s relationship with the company they are auditing and the
Words: 375 - Pages: 2
Sarbanes Oxley Act of 2002 Daniel Alvalle BUS 670 Legal Environment Instructor: Peter McCann 7/29/2013 If you were an investor would you want your money protected? Would you be skeptical about investing in companies since the securities fraud scandals that have happened recently? The answer is most likely, “yes”, to a certain degree. With the news about unethical business practices and companies not following regulatory guidelines, it is difficult to ignore the risk that is involved
Words: 2407 - Pages: 10
Worksheet for You Decide Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: Since Smackey Dog Foods, Inc (“Smackey”) is not a publicly traded company, it would not be subject to SEC regulations and therefore would not need to file the required reports under the securities acts. It would however have indirect impact on the audit of Smackey due to the SEC’s influence in setting generally accepted accounting principles (“GAAP”), the
Words: 3309 - Pages: 14
Evolution of Auditing Abstract It is essential for any business to use physical, mechanical, and electronic controls. Audits are a critical and an important part of every company whether performed internally or externally. The definition of physical control is safeguarding the assets of the business. Mechanical and electronic controls were created to safeguard assets and enhance the accuracy and reliability of the accounting records. Some methods that managiment and auditors can employ to prevent
Words: 732 - Pages: 3
guidelines related to audits of internal control Internal control is a very significant aspect for any organization in order to avoid or distinguish fraudulent acts and misstatements in financial reporting. Apollo Shoes’ existing rule should require that the planning, sustaining, and implementing of guidelines and processes for financial reporting to be performed by management. The Sarbanes-Oxley Act of 2002 Section 404(a) suggests that executives of an organization should present a report with details
Words: 377 - Pages: 2
recently: a new Vice President has been appointed. MA has switched to another audit firm since the new VP is a good friend of the former engagement partner resulting in a conflict of interest. MA has now appointed E&Y as its new audit firm. The engagement partner has, in turn, appointed you to gather information about MA ‘s general and application controls as well as some of CAATs that we can use in this new audit. You spoke to some of MA’s employees and did some additional research regarding
Words: 4452 - Pages: 18
completed the audit of the balance sheet, income statement, statement of owner’s equity, and statement of cash flows. We have completed our audit of management’s assessment of internal controls. We have determined that Apollo Shoes management has implemented effective internal controls over financial reporting. It is our job, as your auditor, to express an opinion of the financial information and internal control position of Apollo Shoes, Inc. based on the information gathered during our audit of the company
Words: 768 - Pages: 4
Audit evidence is all the information used by the auditor. Auditor’s opinion is based the information contained in the accounting records underlying the financial statements and other information. Management is responsible for the preparation of the financial statements based on the accounting records of the entity. The auditor should obtain audit evidence by testing the accounting records. However, because accounting records alone do not provide sufficient appropriate audit evidence on which to
Words: 562 - Pages: 3
