across all publicly held companies and their audit firms. In fact, the most sweeping and detested part of it all was Section 404, which requires “the auditor of a public company to attest to management’s report on the effectiveness of internal control of financial reporting” (Arens, 2011). While this may not sound like much to someone unfamiliar with financial reporting, the effects were unimaginable for those who were responsible for the financial reports of a company, but a huge sigh of relief for
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decision. 2. List three types of consulting services that audit firms are not prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firms's independence. • Services related to accounting entries. Bookkeeping and/or financial statements of the client. • Advising on financial information system would make audit firm to question the system used by a client. • Advising on
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Marketing Audit A Marketing Audit is a comprehensive, systematic, periodic and independent examination of a company’s or business unit’s marketing environment, objectives, strategies and activities with a view to determine problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. The purpose of a Marketing audit is to identify whether there are any working practices that could be more effective. There are essentially
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extent possible. This includes : - Management reviews - Reviews of the design and implementation of the company's risk management approach and business and functional audit committees. - Risk management - Whistleblowing - Audit Source: http://corporate.arcelormittal.com/investors/corporate-governance/risk-management-and-audit 2. Independence of the Board The board of directors consist of 11 members, which are divided into 3 non-independent members (Lakshmi Mittal the Chariman and CEO
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HERMOSILLA, VINCENT B. BSA-3 ACCTG 121C SYNTHESIS CASE 8.3 KANSAYAKU I. Summary This case focuses on Japan’s accounting profession and independent audit function. As this case documents, the accounting profession and independent audit function within the United States and Japan are very similar in many respects but very dissimilar in others. Similar to the United States, Japan’s accounting profession has historically been dominated by a small number of large accounting firms. In fact, each of
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Securities and Exchange Commission’s rationale to charge Cardillo with each of the following violations: * Making false representations to outside auditors * Failing to maintain accurate financial records * Failing to file prompt financial reports with the SEC * Violating the insider trading provisions of the federal securities laws Within the mission statement of the U.S. Securities and Exchange Commission it declares that: “… all investors, whether a large institution or private
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whistleblower and compliance policies and programs to encourage reporting that can help identify risk exposures, fraud, or other illegal activity. This report identifies common pitfalls in many current whistleblower and compliance programs, and it offers recommendations on how audit committees can strengthen them. Government investigations, bankruptcy receiver reports, and numerous books provide a rich source of information about the major corporate disasters of the first decade of the twenty-first century
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|Concept |Application of Concept in the Scenario |Reference to Concept in Reading | |Shift in Corporate Power |By appointing a board that is approved by the investor, this effective shift|“…But, in the last decade, and especially | |from CEO to Stakeholders |will occur. In today’s business environment the board plays an active role |in the past five years, boards of directors| | |in decisions as opposed
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Evidence on the Audit Risk Model: Do Auditors Increase Audit Fees in the Presence of Intemal Control Deficiencies?* CHRIS E. HOGAN, Michigan State University MICHAEL S. WILKINS, Texas A&M University 1. Introduction Internal controls over financial reporting (ICOFR) should provide reasonable assurance about the reliability of financial statements by setting in place policies and procedures related to maintaining accounting records, authorizations, and safeguarding of assets.' For such controls to
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Final Review for ACCT 436 M/C题： 1. Racketeer Influenced and Corrupt Organization (RICO) -Act that lists more than 30 different state and federal crimes for which the violation of any two in a related pattern over a 10-year period can lead to criminal and/or civil liability with criminal penalties of fines up to $25,000 and 20 years in prison; part of the Organized Crime Control Act (OCCA) of 1970. -The act was designed to combat organized crime, forbids certain organized gambling, and to allow
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