Dignam Case 1.9 ZZZZ Best Company, Inc Question 1. Audits are expensive. For small business, the cost of an audit will run into the thousands of dollar, for large corporations the cost may exceed a million dollars. The most common reason for a small business to incur the cost of an audit is the influence exerted by a bank that insists upon audited financial statements as a condition for granting a bank loan. Sometimes the cost of audit would exceed its benefit. The alternative is to retain a
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Auditing Standards, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report are discussed. This Standard comes from SAS No 122 and is effective for audits of financial statements ending on or before December 15, 2012. The scope of this section is to address additional communications in the auditor’s report when the auditor considers it necessary to draw the user’s attention to a matter that is: • Presented or disclosed in the financial statements that are of such
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decision-making, and control purposes. Nine reasons to document an AIS are (1) to explain how the system works, (2) to train others, (3) to help developers design new systems, (4) to control system development and maintenance costs, (5) to standardize communications among system designers, (6) to provide information to auditors, (7) to document a business’s processes, (8) to help a company comply with the Sarbanes-Oxley Act of 2002 and AS5, and (9) to establish employee accountability for specific tasks or
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entrepreneurship, discipline, leadership, responsibility, communication, goal orientation, self-improvement, team dynamics. EDUCATION 2008-2012 Çağ University, Mersin, Turkey Management 2007-2008 Çağ University, Mersin, Turkey Çağ University School of English Language (Prep-Class) 1998-2004 Bilfen Collage High School, Adana, Turkey Turkish High School Diploma, EXPERIENCS June 2011-May 2012 • • Experience in sales, after sales, communication and customer relationship marketing Internal Auditor
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The Audit Report and Internal Control Evaluation University of Phoenix Michelle Melville Auditing/ACC 546 April 21, 2014 Professor Hillary Edmondson Auditor’s Responsibility for Detecting and Reporting Fraud It is the responsibility of the audit engaged in the audit process to detect material misstatement in management’s assertions. These material misstatements must also be properly reported. Arens et. al (2012) defined fraud as “…any intentional deceit meant to deprive another person
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made while conducting the audit. The manager, senior auditor, and staff auditors are to perform the actual audit examination. The engagement team’s responsibility is to complete the audit with competency and objectivity. What is the purpose of having both a partner-in-charge and a consulting partner on each audit engagement? Should the partners be rotated periodically? Why or why not? The partner-in-charge is responsible for leading the engagement team through the audit and making decisions during
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an effective audit to aid in the success of our clients. First and foremost we must understand what auditing and assurance services are. According to Wikipedia, “The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project, or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.” When it comes to accounting audits are performed
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Independent auditors function as a “public watchdog” ensuring that the information available to investors and creditors is truthful and reliable. It is critically important that independent auditors exercise professional skepticism in the performance of audits. The auditor’s role is to offer an opinion on whether an entity’s financial statements are materially free from misstatements. However, the auditor’s role in business and society is greater due to the meaning their opinion imparts. The opinion of
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assurance Overview This module builds on the fundamental concepts of auditing and other assurance services introduced in your prerequisite auditing course. It begins with an overview of the key drivers in the demand for audits, and then surveys current challenges and issues such as the audit and regulatory environment and the expectation gap. You will also study issues related to the economics of auditing and their impact on auditor motivation and standard-setting; in the process, you will consider different
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how each situation would affect your overall audit plan. Include reference to the nature and extent of audit evidence, which need to be accumulated. A) The civil unrest in Country X would impose various strains upon the planning of an audit. Firstly, due to communication blackouts, the level of information ascertained by the auditor would be very limited, which could potentially affect the auditor’s professional opinion on materiality. During an audit plan, auditors normally estimate the scope
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