work. According to PSA 200 (Revised and Redrafted) the prime purpose of an audit report is to enhance the degree of confidence of intended users in the financial statements which can be achieved by the expression of an opinion by the independent auditor on whether the financial statements are prepared, in all material respects in accordance with the applicable financial reporting framework. Putra, in his article entitled Understanding Audit Reports and Auditor’s Opinion, foremost conferred about
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check the financial statement of listed companies, auditing become more and more important in the society. The people cannot know more the situation about listed companies, so they use auditors’ report to think their investment. However, with more and more scandals about auditing, many people think whether external auditors’ reports provide information to investor that serves the public interest under the current regulatory environment. The public interest First, it is important to know what the public
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returns. I think the federal laws should require internal audits to protect public because in publicly held corporations, the internal auditing function has been greatly expanded as a part of fulfilling the requirements of Sarbanes-Oxley. internal auditors were poised to help management fulfill the additional requirements implicit therein. In the 1980s, highly publicized business failures and fraudulent financial statements that went undetected by external auditing firms gave further merit to the concept
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Erica Gray, CPA, is a sole practitioner. She has been practicing as an auditor for 10 years. Recently a long-standing audit client asked Gray to design and implement an integrated computer-based accounting information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wonders if she can remain objective on subsequent audits in her evaluation of the client’s accounting system and its records if she was responsible for its design and implementation
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1- What are the pressures that lead executives and managers to “cook the books?” In the 1990s, the telecommunication was rapidly growing which led WorldCom to adopt the strategy of purchasing small long distance firms with limited geographic service areas and consolidating carriers with large market shares. This was the company’s main key profit. Indeed, by adopting this strategy, WorldCom grew quickly by expanding internationally in South America, West America, Europe and Latin America. As a result
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Y. Bhg. Dato’ Hardi Yusof (Independent Non-Executive Director) Mr Heah Sieu Low (Independent Non-Executive Director) Dato Aisyah Syed (General Manager of CSP Fasteners’) Mr Azim Rahmat (General Manager of Maya CSP Sdn Bhd) Wong Kar Chun (Auditor) Ms Loh Ai Lin (Secretary) Apologies : Mr George Siong Chee Sook (Independent Non-Executive Director) CHAIRMAN FOR THE MEETING Tan Sri Wahid Jalil took his place and declares the meeting
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Question No. 1 The primary responsibility of external auditor is to report on the organisation's financial statements. The external auditor’s aim is to determine whether the statements fairly present the financial position of the organisation and the result of its operations for the period. But the Internal Auditors have a different function. It is broader and deeper than that of the external auditors. It furnishes managers throughout the organisation with information needed to effectively discharge
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Acc.403 Homework (Week 1) 17) I think Vail-tek should have an audit done to save $15,000 C) Lender | First National 3,500,000 * .080 = 280,000 | City First3,500,000* .075 =262500 | 3,500,000 | 280,000 + 20,000 = | 262,500 +50,000 = | | 300,000 | 312,500 | In this situation, I would recommend that Vail-tek do a review with and take the deal with First National D) External users like shareholders and lenders depend on assured information. Also they can test their effectiveness of
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2. A company's board of directors is responsible for acting in favor of the shareholders benefit, such as making major company decisions that could affect the shareholders. The Board of Directors hires and fires the executives, decides on dividend policies, option policies and, how much to pay the executives. In my opinion, I think that the board of directors could have changed some policies, been more aware of the risk involving the SPE's instead of letting things unfold the way that they did. The
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expanded audit report is effective in reducing an audit expectation gap. A survey conducted by Nair and Rittenberg (1987) in the USA revealed that an expanded audit report changes the users’ perceptions with regard to the responsibilities of the auditors. Likewise, Gay and Schelluch (1993) found that audit reports based on the revised Statement of Auditing AUP3 (i.e. an expanded audit report) in Australia significantly improved users’ perceptions of the purpose of an audit, the audit procedures
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