Tong Chai MA82501 Spring 2012 Case 1.3 Just For FEET, Inc. 2. Just for Feet operated large, high-volume retail stores. Identify internal control risks common to such businesses. How should these risks affect the audit planning decisions for such a client? For the large, high-volume retail stores, I identified the following internal control risks common to such businesses: * Management operating strategy is the top source of all the issues. Most retail stores are pretty decentralized and
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D. Equally, impartially, and openly 3. The Independence Principle in the AICPA Code applies to: A. All accountants and auditors B. All CPAs regardless of professional services C. All CPAs who render attestation services D. All members of the audit committee 4. In stage 1 of Kohlberg's model, ethical reasoning is motivated by: A. Fear of punishment B. Satisfaction of one's needs C. Following the law D. Acting based on universal ethical principles 5. Professional judgment in accounting
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Affect Being in the accounting profession for close to eight years, I have seen how large of a role ethics plays. While I have never done or been asked to do anything that could be considered unethical, I have come to realize that in accounting there is a lot of gray area. Many principles are left for interpretation and in some cases little guidance is given. In these cases ethics becomes of the upmost importance. Early in the chapter, Mark Cheffers and Micael Pakulauk raise the question of
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at the entity's place of business. B. they are not employees of the entity being audited. C. they are paid by parties outside of the audited entity. D. they report to users outside of the audited entity 5:B 12.Independent auditors perform audits on the financial reports of public companies. This type of auditing can best be described as: A.a discipline that assures financial information presented by management. B.an activity whose purpose is to search for irregularities. C.a regulatory
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Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation Accounting I 02/27/2011 Analyze the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. The main purpose of the Sarbanes Oxley Act was to establish an accountable system of regulations and policies to ensure proper compliance. The set of standards and deadlines the act put into place was mainly in response to an alarming amount of corporate
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The primary purpose of auditor is provided audit service to audit client. Auditor main duty is to offer independence verification of a company's record to make sure that all the information matches up to what was provided. The audit is an important part of the capital market framework as it not only reduces the cost of information exchange between managers and shareholders but also provides a signaling mechanism to the markets that the information which management is providing is reliable. Independence
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The Sarbanes-Oxley Act of 2002 Presented by: Ibrahim M. Conteh; Ruby Proctor Garcia; Kathleen M. Parry; Joseph M. Schmerling; Jaime Ulloa Auditing Theory and Practice 0902 ACCT422 4021 Due: April 29, 2009 Table of Contents Page Number What is the Sarbanes-Oxley Act of 2002? 3 Why was SOX established? 4 When did SOX take effect? 5 What companies were affected and how? 6 What does SOX compliance require
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planning auditors should consider for clients who use computers and describe how a computer can be used as an audit tool. | 16, 17, 18, 19, 20, 21, 22 | 57, 60 | 5. Review audit documentation for proper form and content. | 23, 24, 25 | 50, 61 | SOLUTIONS FOR REVIEW CHECKPOINTS 4.1 A CPA can use the following sources of information to help decide whether to accept a new audit client. Financial information prepared by the prospective client: * Annual reports to
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Code of Professional Ethics and Conduct Code of Professional Ethics and Conduct The AICPA adopted a Code of Professional Ethics and Conduct made up of various rules to provide guidance to members on the performance of their professional responsibilities (Strayer, 2011). All of the rules set forth by the CPA are enforceable under the AICPA bylaws. These bylaws enforced by the Joint Ethics Enforcement Program which
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Dunne, Kimberly A., Popp, Karen A., Franklin, Kathleen M., Levick, Richard. “The Top Five Tips Every Executive Needs to Know About Sarbanes-Oxley and Corporate Ethics.” Exec Blueprints (2008): Print. The authors are law experts from various law firms who share their insights into corporate ethics, as it relates to Sarbanes-Oxley. The article begins by detailing how the Sarbanes-Oxley legislation now holds top executives criminally responsible for any public misstatements of a company’s finances
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