get unbiased results. Confirmations should be tailored designed to meet the specific objects of a particular audit engagement and auditor should consider all the factors which can affect the responses. Followings are the four factors auditor should keep in mind while evaluating the external confirmations to arrive at the conclusion that responses received provide sufficent appropriate audit evidence regarding the assertion being audited: The reliability of confirmations: The auditor has to understand
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Attestation Roger Philipp, CPA AUDIT Written By: Roger Philipp, CPA Roger CPA Review 1288 Columbus Ave #278 San Francisco, CA 94133 www.RogerCPAreview.com 415-346-4CPA (4272) AUDIT Table of Contents Introduction…………………………….………………………………..………………1 AUDIT-1 Audit Standards & Planning…………………………………………….…………….…...2 AUDIT-2 Internal Control…………………………………………………………………….………...3 AUDIT-3 Audit Evidence…………………………………………………………….………………....4 AUDIT-4 Audit Sampling........................
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audit Material misstatement: A misstatement in the financial statement can be considered material if knowledge of the misstatement would affect a decision of a reasonable user of the statement. Third party liability: A situation in which one party is held partly responsible for the unlawful actions of a third party. Independence in fact: Independence in fact exists when the auditor is actually able to maintain an unbiased attitude throughout the audit. The auditor’s ability to take an unbiased
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following situations, discuss whether it creates a threat to professional independence. What safeguards would you suggest? a) Heng, a sole proprietor in public practice, plans to establish a separate department that will provide internal audit services to her audit clients. Heng is a sole proprietor and this means he shall not have large capital base to reject clients nor does he has adequate staff force to rotate
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their risks. Business risk, financial reporting risk, engagement risk, and audit risk are the four critical components of risk that are relevant to conduct an audit. Risk is a pervasive concept. Organizations are at risk everyday they operate. Old fashioned audit was only looking for the financial risk. And auditors were over auditing. Company’s shareholders is expecting more than just financial auditing. Company management, audit committee, shareholders, public and creditors is expecting more from auditors
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| | | | |2. |In the audit of historical financial statements, which of the following accounting bases is the most common? | |easy |
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Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: c a. finance. b. auditing. c. accounting. d. economics. 2. easy In the audit of historical financial statements, which of the following accounting bases is the most common? c a. Regulatory accounting principles. b. Cash basis of accounting. c. Generally accepted accounting principles. d. Liquidation basis of accounting
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CHARTER OF THE FINANCE AND AUDIT COMMITTEE OF THE ORACLE CORPORATION BOARD OF DIRECTORS (As last amended by the Board of Directors on July 13, 2008) I. PURPOSE The primary function of the Finance and Audit Committee (the “Committee”) is to provide advice with respect to the Corporation’s financial matters, to oversee the accounting and financial reporting processes of the Corporation and the audits of the financial statements of the Corporation, to assist the Board of Directors in fulfilling its
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Enron, and World Com. 4. What is the Public Company Accounting Oversight Board? The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection. 5. Select two requirements provided
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Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board has provided the accompanying explanations. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams. 2006 AICPA Newly-Released Auditing Questions An auditor observes the mailing of monthly
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