Cendant Corporation Evaluating Risk of Financial Statement Fraud and Assessing the Control Environment • Describe the auditor's responsibility for considering a client's internal controls • Describe the auditor's responsibility to detect material misstatements due to fraud • Identify red flags present during the audits of CUC International, Inc.'s financial statements, which suggest weaknesses in the company's control environment (CUC was the predecessor company to Cendant Corporation)
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Audit Process Planning The auditor will review any prior audits in your area and professional literature. The auditor will research applicable policies and statutes and prepare a basic audit program to follow. Notification The auditor will notify the appropriate department or departmental personnel regarding the upcoming audit and its purpose, at which time an entrance conference will be scheduled. Entrance Conference The entrance conference will include management and any administrative personnel
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vendor | Scope | Assigning of work/Purchase Order to Vendor | Reference | Making payment to Vendor | Customer | Output | Process | Input | Supplier | * Vendor/Customer * Finance | * Certificate of Adherence/Non-Adherence by Internal Auditor * Certificate of adherence/non-adherence to Quality issued by Quality Assurance Engineer * Defined Quality Installation/Mechanism Vendor needs to follow * Hefty penalties on vendor against non-compliance * Instill competition amongst Vendor
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management team were former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship
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BA 3322 – Report (Lecture 4 – Auditing the Revenue Cycle) Drea Tech Company has been growing rapidly and has recently engaged your firm as its auditor. It is actively traded over the counter (OTC) and management believes it has outgrown the service capabilities of its previous auditor. However, on contacting the previous auditor, you can learn that a dispute led to the firm’s dismissal. The client wanted to recognize income on contracts for items produced but not shipped. The client believed the
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referred to above present fairly, in all material respects, the financial position” rather than “The financial statements mentioned above are correctly stated.” The first phase is used because it uses the word material respects which indicate that the auditors are only responsible to search for significant misstatements, not minor misstatements that do not affect the decision makers. The second phrase is indicating that the auditor’s reviewed the entirety of the financials for all minor and major misstatements
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Auditing This inquiry will exemplify what the staff should anticipate auditors to do should auditors come into a division as part of an organizational – wide audit prior to issuing an audit opinion for the organization’s financial report. What precisely can an auditor ascertain from the examination of an organization’s financial report, and what can the audit provide? According to Merriam-Webster, 2014 an audit
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Ethics Assignment Victor M Rodriguez Dona Ana Community College This assignment is very interesting, because it, once again, exposes an individual with the classic predicament of speaking out or remaining quiet. Each course of action has potential implications for all stakeholders in this situation. This document will attempt to delve into those courses of action to try to arrive at the best possible recommendation for our network administrator (NA) facing this tortuous dilemma. The dilemma
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| Elevating Professional Judgment in Auditing and Accounting | | | | 9/17/2014 | | The demand for good judgment is high but the reality is most people receive very little formal training in what good judgment looks like or what may threaten good judgment. KPMG developed a training tool to enhance the professional judgment for all levels of audit professionals. The need for this training is a result of the economy, the use of fair value measurements, and changes in regulations
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audits according to the SEC independence rules regarding nonaudit services? a. CPA Dakota Tidrick is a staff assistant II auditor on the Section Co. audit. Upon the audit completion date in January, Tidrick drafted the balance sheet, income statement, comprehensive income statement, statement of cash flows and notes for review by the engagement partner before the auditors’ report was finalized. b. CPA Mel Carnes is a manager in the firm’s consulting division. He spent 100 hours with the Section
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