all 3 aspects 8) 5 components of management’s internal control (1) control environment, (2) Risk assessment, (3) control activities, (4) Monitoring and (5) information and communication 9) The control environment is the tone set for the organization as the foundation for all other components of internal control 10) Audit committee is a subcommittee of the BOD that is generally composed of 3-6 independt members in the entity’s day-to-day management of the organizations BOD. 11) Risk assessment
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This assignment is worth a total of 30 points allocated as indicated. Please complete your answers in a Word document and submit it using the Assignment 2 dropbox. This course is geared toward research and communication. That means you will be researching the appropriate standards and communicating your answers. Support answers with facts and/or examples. Your answers should be original – do not just copy or paraphrase the lecture notes, books, articles, or your classmates. All composition-type
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foundation in different aspects of business, I couldn’t help but notice what an essential role accounting played in every business transaction. Moreover, I have been hooked on detective fictions since I was a child. After I got contact to audit, I realized that independent auditor serves as the “detective” in the economic field. The business conditions and financial statements are “evidences”, and an auditor is supposed to testify independently that such evidences are backing the truth
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clients may impair objectivity and independence. Implications- auditor may not qualify the audit report when qualification is required because this will upset client who may move to another audit firm and thus cause loss of significant income. Safeguards Do not accept certain assignments. Resign from certain assignments. Do not stand for reappointment as auditor. Reduce non audit work with a view to control gross practice income from that particular client. As a general
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NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Learner: Anderson, Leona M. MGT7019 | Dr. Jennifer Scott | | | Ethics in Business | Case Study: A primer on Sarbanes- Oxley | <Add Learner comments here> ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- <Faculty comments here> ------------------------------------------------- -------------------------------------------------
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Assignment 1-38 A. The value of an audit to investors is critical because it allows them to assess performance, which in turn allows them to vote on organizational matters such as a board of directors. It also helps them make decisions on whether or not to buy or sell stock. As for creditors, an audit report serves a basis for realizing performance. With this they are able to make loan decisions and analyze risk. As far as the community as a whole, an audit reports shows true performance and therefore
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Case #2.4 – Enron: Quality Assurance I. Technical Audit Guidance To maximize the knowledge acquired by students, this book has been designed to be read in conjunction with the post-Sarbanes-Oxley technical audit guidance. All of the post-Sarbanes-Oxley technical guidance is available for free at http://www.pcaobus.org/Standards/index.aspx. In addition, a summary of the Sarbanes-Oxley Act of 2002 is also available for free at http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Sarbanes-Oxley+–+The+Basics
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What are the primary and secondary reasons for conducting an evaluation of an audit client’s internal control? A. The auditor has two primary reasons for conducting an evaluation of a company’s internal control. 1) First, Sarbanes-Oxley (SOX) requires an audit of management’s assessment of internal controls for publicly traded companies. This type of audit is an integrated part of the financial statement audit. In some substances, the auditor issues three opinions: one on the company’s
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violation or compliance of the AICPA’s Code of Professional Conduct in this case study and analyze the key reasons why they were or were not in compliance. Provide support for the rationale. In the Cardillo Travel Systems, Inc. case there were two audit firms spoken of: Touche Ross and KMG Main Hurdman (KMG). According to the text, Touche Ross was engaged in auditing services at Cardillo in 1985. The engagement was
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may come about as a result of negotiations between management and their auditors ± with the auditors examining the reasonableness of management's justi®cations for their representations. Indeed, the modern audit with its emphasis on high-level business risks could almost be viewed as the `audit of motivations' ± to understand the ®gures in the ®nancial statements, it is important to understand management's motivations. Financial reporting and auditing are not just technical subjects, but they
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