Audit Group Project 1a. The transition between predecessor auditor and successor auditor is governed by AU Section 315. It details a list of responsibilities on each side prior to the acceptance of the audit. The predecessor auditor is considered the one who reported on the most recent audited financial statements or was engaged to perform this audit but did not complete it. The successor is an auditor who is considering accepting an engagement to audit financial statements. (AU 315.02) The
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Andersen clearly had a conflict of interest. Andersen earned more form other accounting services from Enron than from auditing services performed. This would certainly lead to the notion that Andersen could and probably did alter the financial reports of Enron to their own benefit. The top executives at Enron were also just as responsible as each of them were profiting from the buying and selling of the company’s stock making huge profits. Both the auditors and the top executives were well aware
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Guidelines for Preparing Your Executive Report Contents 1. Title Page: the title should clearly and succinctly communicate the central focus of the paper. The name of every person who is to receive credit for the project must appear on the title page. No name, no credit. 2. Table of contents: List of each of the major sections, including references and appendices, and specify the page on which they begin. (-5 points) 3. Executive Summary: Provide a 100-150 word summary of the purpose
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Course Schedule Course Modules Review and Practice Exam Preparation Resources Module 1: Conceptual issues in 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
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Company There are many forms and reports that need to be submitted to a range of people; the annual report is for shareholders and investors, tax documents to submit to the IRS, and a form 10-K for the SEC. The Form 10-K is specifically for providing comprehensive details of the company’s business and financial condition based upon audited financial statements that is given in addition to the annual report (Epstein, 2014). Though it is a part of the annual report, it provides four key parts that
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financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements. In accordance with the US GAAP, auditors must release an opinion of the overall financial statements in the auditor's report. Auditors can release three types of statements other than an unqualified/unmodified opinion. The unqualified auditor's opinion is the opinion that the financial statements are presented fairly. A qualified opinion is that the financial statements
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Audit Issues 1. Many large companies hire their law firm(s) to provide tax opinions that certain tax planning strategies have a reasonable of being sustained on an audit. Can the auditor rely on representation letters from third parties to avoid auditing these opinions? Briefly explain why or why not. No, the auditor cannot rely on representation letters from law firms to avoid auditing these opinions. The auditor can only rely on the tax opinion of a specialist as defined in AU Section 326 Part
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financial community and members of the public. All these people could be reliant on the quality of the auditor’s work, even though they are not party to the contract between the client and the audit firm. The reliability of the financial reports and the audit report is potentially damaged if the auditor does not act with integrity (honesty), objectivity (being independent), with professional competence and due care (executing the work with the required level of skill and attention), confidentiality
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improvements on things such as design and innovation. Annual Report These initiatives are explained further in the company’s annual report. The annual report is a way for shareholders to receive important documents and information about the business. This report includes research and development, marketing information, financial reports, and subsidiary activity for all new future plans. Each company is required to send an annual report to the shareholders to keep them abreast of the company’s
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Introduction This assignment is to investigate the company’s financial and non-financial information before making an engagement for audit. Barnes Fischer’s is an auditing company which will investigate Ocean Manufacturing and upon evidence will decide whether to accept them as a client or not. Ocean Manufacturing, Inc. Ocean Manufacturing, Inc. is a small- to medium- sized company which manufactures home appliances such as toasters, blenders, and trash compactors. In the past few years the company
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