decision makers. Encompasses attest services and financial statement audits * Reporting not only on the reliability and credibility of information, but also on the relevance and timelines. * Attest (声明): A service when a practitioner (从业者) is engaged to issue or does issue a report on subject matter, or an assertion about subject matter, that is the responsibility of another party. Encompasses financial statement audits. * A broader auditing service, including not only economic events
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Case 3.4 Sunbeam: Incentives and Pressure to Commit Fraud 1. Consult paragraph 9 of PCAOB Auditing Standard No. 5. Based on your understanding of inherent risk assessment and the case information. Identify three specific factors about Sunbeam that might cause you to elevate inherent risk. The fact that the structure of the organization was in major flux and that the employees were probably in chaos mode with all the terminations in management, I am sure that the overall tone from the top
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September 23, 2012 Audit Firms’ Work Deemed Deficient September 17, 2012 Siyuan Zhu I. Summary of the Story with Key points clearly identified Recently, regulators discover that big audit firms’ work has a substantial amount of serious deficiencies. Although the PCAOB conducts inspections of the big firms concentrate on problems at highest risk every year, it states that the report may not be truly reveal how frequently a firm’s overall audit work is deficient. Thus more work need to be
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annual reports because when these reports are issued, they are also a reflection of the company’s internal controls. The internal control process begins with management and the attitude that management portrays through the company. Manager duties include implementing the policies and procedures used within the company, these policies and procedures are also used to build the structure which is found within the internal control environment. Internal Control Reporting Options An audit report
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Types of Audits Each business process at Kudler Fine Foods has unique transactions and qualities. Therefore, a unique type of audit is required to meet specific circumstances for each process. The four main types of IT audits are attestation, findings and recommendations, Statement on Auditing Standards (SAS) 70 audit, and SAS 94 audit. Attestation An attestation is an agreed upon procedures audit. It requires the auditor to provide assurance on a specific subject matter and a conclusion
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A.2 Case Waste Management Synopsis In February 1998 Waste Management announced that it was restating its financial statements for 1993 through 1996. In its restatement, Waste Management said that it had materially overstated its reported pretax earnings by $1.43 billion. After the announcement, the company’s stock dropped by more than 33 percent, and shareholders lost over $6 billion. The SEC brought charges against the company’s founder, Dean Buntrock, and five other former top officers. The
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You are an audit senior in an accounting firm and you asked the audit partner about the 'audit expectation gap’. The audit partner provided his opinion on the issue as follows: There is a so called 'audit expectation gap', and it is associated with unreasonable expectations of users. They want all fraud found, and a guarantee that the company will continue forever. This is quite unreasonable and not what the audit is designed to do! Perhaps we could do more on these issues, but it would be more work
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The Culpability of Accounting Fraud: Auditors, Managers or Both ACC 503 – Accounting for Management Abstract The purpose of this term paper is to provide insight to the reader about accounting fraud and on whom the responsibility lays whenever there is an allegation of accounting misconduct. Based on the rash of accounting fraud by major respectable corporations in recent years, no one organization is immune to accounting fraud and it is prevalent in the
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The reason for IFI or any regulatory body considering the ‘enjoining what is good and forbidding what is evil’ to be one of the basic principles of IFI Shariah Audit is due to ensures acceptance, validity and enforceability of contracts from Shariah point of view. Stating by Islamic Financial Services Board (IFSB), Shariah compliance actually is a central in assuring the integrity and credibility of the Institutions offering auditing. They state that Shariah non-compliance risk is the risk that
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Many people are familiar with the role of the ethics in the auditing profession which basically is integrity and objectivity for the auditors. This essay addresses dimension of the ethics in the profession of auditing main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their
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