to increase the effectiveness of corporate governance in the post-Enron era through the implementation of financial statement insurance. This paper gives a brief history of the purpose of financial statements as well as the importance of external auditing of financial statements. It gives examples of the corporate governance failures of companies like Enron and WorldCom. It covers how and why these failures happened and reviews the grave consequences of the failures. It also takes a brief look
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Abstract This paper focuses on the modifications and opinions of an audit report. An audit report is a crucial part in the auditing process. It is a guide for users of the financial information. Auditors issue opinions on the financial statements based on certain criteria. The main thing is if the financial statements are presented in accordance to GAAP. Also, modifications can occur after the opinion is issued. Modifications vary depending on the issue at hand. Changes in principles or a
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Generally Accepted Auditing Standards Joey Wines Franciscan University Generally Accepted Auditing Standards Generally Accepted Auditing Standards, also known as GAAS, is a rather broad topic with many guidelines to follow. An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. A short definition of GAAS is the set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring
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Research Method Internal Auditing versus external Auditing When it comes to the subject of the audit, one will often find the concepts of internal audit and external audit. If these two audits are necessary for the good functioning of company, and if the collected sources agree that the skills required for these two notions are relatively identical, it remains not only tasks and the environment of the internal auditor and the external auditor differ. In order to best support our report, we
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Advanced External Auditing [AU2] Examination Blueprint 2013/2014 Purpose The Advanced External Auditing [AU2] examination has been constructed using an examination blueprint. The blueprint, also referred to as the test specifications, outlines the content areas covered on the examination and the weighting allotted to each content area. This document also lists the topics, the level of competence for each topic, and the related learning objectives and competencies. The learning objectives have been
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Claudia I. Hernandez University of Phoenix Recommendation Brief for an Internal Accountant When a company is experiencing difficulty controlling their accounting functions, hiring an internal auditor will alleviate some of the problems. Internal auditing helps companies to look at ways to improve and achieve short-term and long-term objectives. Internal auditors are hired to perform internal audits that look at a company’s operations, investigating fraud, financial reporting, safeguarding assets
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a. The issue being addressed in the paper: “Risk-Based Auditing, Strategic Prompts, and Auditor Sensitivity to the Strategic Risk of Fraud” written by Kendall Bowlin explains how auditors do not anticipate the strategic risk that arises when client managers anticipate auditors’ risk based resource allocations. The conventional auditing approach suggests that more (fewer) audit resources should be focused on higher (lower)-risk accounts. However, according to the paper’s author this idea is causing
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misstatement in the financial statements and planning the collection of audit evidence in response to those risks (Boynton & Johnson, 2006). 3. If you are auditing the existence and occurrence assertion, what specific audit objectives should be accomplished by developing an audit program? Explain the purpose of each audit objective. When auditing the existence and occurrence assertion in the transaction objectives of occurrence and cutoff. With occurrence the audit ensures that transactions and events
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Generally Accepted Auditing Standards Jessica Lyle ACC/491 February 17, 2014 Dwayne Thompson The auditing process is an important part of the financial system. The auditing of a company provides a means of accountability, and it ensures that the financial information provided by the company is accurate. This is significant because investors use these financial statements in order to determine the value or financial health of a company. When conducting an audit, it is important to take into
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Audit Process Internal controls are the policies, practices, procedures, and processes that management implements in order to ensure the accuracy and fairness of the information recorded in company financial statements. Traditional management practice has been to define a performance expectation and monitor employee performance for deviations from established performance standards. Traditional auditing has also followed this management practice with regard to internal controls. Auditing traditionally
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