Assurance Assurance: Essay Assignment Assigned article: Geiger, M.A., & Rama, D.V. (2006). Audit Firm Size and Going-Concern Reporting Accuracy. Accounting Horizons, 20(1), 1-17. Additional articles: Carcello, J.V. & Neal, T.L. (2000). Audit Committee Composition and Auditor Reporting. The Accounting Review, 75(4), 453-467. Geiger, M.A. & Raghunandan, K. (2002). Auditor Tenure and Audit Reporting Failures. Auditing: A Journal of Practice & Theory, 21(1), 67-78. Name: Karlijn
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Goodman & Goodman, a CPA firm, has audited Toys City, Inc., for the last three years. Toys City, Inc., is a regional retailer of children's toys and games. Each of the three previous audits resulted in unqualified opinions. Toys City's year end is December 31, and Goodman & Goodman has agreed to provide the audit report on March 1, 1998, ten days before the annual board of directors meeting. Bert, the manager from Goodman & Goodman in charge of the Toys City engagement, recalls that last year
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from providing non-audit services (e.g., consulting services) for the same clients in which they audit. In the article “The Case of Phar-Mor Inc.” the author Williams, S. Lansing (2011) presents a case study in hindsight to determine if the 1992 bankruptcy of the deep discount drugstore Phar-Moc Inc who cost its investors 500 million dollars might have been prevented if the Sarbanes-Oxley Act of 2002 (SOX) had been in effect. Do you think that Title II, Section 203, “Audit Partner Rotation”
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T.1.SAS No. 106 “Audit Evidence’, identifies the principal “managementassertions” that underlie a set of financial statements. The occurrenceassertion was particularly critical for ZZZZ Best’s insurance restorationcontracts. ZZZZ Best’s auditors obtained third-party confirmations tosupport the contracts, reviewed available documentation, performedanalytical procedures to evaluate the reasonableness of the revenuesrecorded on the contracts, and visited selected restoration sites.Comment on the limitations
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company 2. Observations and other related activities * Short factual narration of the experience during the visit. Highlights of the happenings. * Production flow / process * Production capacity * Other related activities II. Audit Firm A. Name of Company Visited 1. Company Profile * Short description of the company visited. * Vision, Mission, Values * Services offered * Other related information pertaining to the company 2. Observations * Short factual
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evidence & findings Evidence- reports should have verifiable ability. Awareness - Fair presentation - Obligation to report findings truthfully and accurately. Correct or incorrect application of audit principles according to the cause Lack of independence and awareness trickled down the audit committee The Committee was represented positively, the accounting controls within were “virtually non-existent” . Even though Arthur Andersen acknowledged WorldCom as a “maximum risk” client and mentioned
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Assignment #2 Cash The information that follows is grouped into two categories: 1) Internal Control and 2) Substantive Audit Procedures. This information is to be used to complete the exercises for this assignment. Relevant Information Internal Control Peach Blossom Cologne Company’s general disbursement checking account (account number 101) is with the Big City National Bank, Main at Michigan Avenue, Chicago, Illinois. It is used for all cash receipts and disbursements transactions
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Structure This report deals with an external audit of Dickinson Technologies, Inc. Dickinson Technologies Inc. is an international manufacturer of instruments, with manufacturing operations both inside and outside of the United States. Dickinson Technologies, Inc. has a net income which has increased each year, from $3.8 million seven years ago, to a projected $15.6 million in the current fiscal year. (Agoglia, Brown and Hanno, 2003) The audit revealed that Dickinson Technologies, Inc does not
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1. DIRECTOR 1. WHO IS DIRECTOR? A company is a business entity whereby it is associated or collected of individual real persons and/or other companies, who each provided some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by
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5-2: ZZZZ Best 1. I think that auditors should be held liable for failing to discover fraud. There are many ways the fraud could have been discovered over the years if the auditors performed an objective audit that followed rules and regulations. It is an auditor’s obligation to perform an audit with objectivity, skepticism, independence, and objectivity. Ernst & Whinney failed to meet these criteria. The auditors did not follow professional skepticism because when Minkow asked them to sign a
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