Code of Corporate Governance 2012 Board’s conduct of affairs Every company should be headed by an effective Board to lead and control the company. The Board is collectively responsible for the long-term success of the company. The Board work with Management to achieve this objective and Management remains accountable to the Board. Board Composition and Guidance There should be a strong and independent element on the Board, which is able to exercise objective judgment on corporate affairs independently
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invoices. EAI has been audited by a sole practitioner over the past ten years. Due to the large growth experienced by EAI, the President of EAI is considering switching to Check and Balances, professional accountants for the upcoming year. You are an auditing student
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Legality and Ethicality of Corporate Governance United Thermostatic Controls is a publically traded corporation and is in the middle of an internal audit going on. The company makes and sells the thermostats that are in refrigerators and furnaces in residential and commercial properties. Frank Campbell (the director of the Southern sales division) is worried about their goals not being met due reasons concerning the big fluctuations in the market, the end of the year approaching, the thermostat
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that the ownership is automatically transferred. This is a pretty dirty move because it will upset the customers and cause them grief. Also, the apparent reason for this was more about executive compensation and stock prices. The director of the auditing department, Cupertino, is required to share his findings
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Corporate governance heavily refers to the whole structure of rights, processes and controls established internally and externally over the management of a business entity with the objective of protecting the interests of its stakeholders from any type of loses incurring. To begin with, firstly there are three types of auditors in the corporate governances, internal, external and government auditors. The role of the internal auditors in the corporate governance is to evaluates corporate activities
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When considering whether or not to accept a new audit client, the successor audit should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining the acceptance of the engagement. Matters subject to inquiry include: information that might bear on the integrity of management, disagreements with management as to accounting procedures, or other similar significant matters, and communications to audit committees regarding
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was signed by the Chief Financial Officer. This helps ensure that the filings are correct, comply with SEC reporting requirements, and are properly communicate to stakeholders in the management of Barnes & Noble, Inc. The organization uses internal auditing committee called the “Audit Committee “. The Audit Committee reviews the company’s financial reporting process on behalf of the Board of Directors. Barnes & Noble also uses and independent auditor that is responsible for expressing an opinion of
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1 1 Learning Objectives 1. What is auditing? Distinguish between auditing and accounting. Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA? Identify the primary types of auditors. 2 What is auditing? Evaluating 3 Nature of Auditing Auditing is the accumulation and evaluation of evidence
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staff member is able to maintain an independent viewpoint while performing the engagement. Once the auditor decides to accept the engagement, an engagement letter is prepared that details the timing, responsibility and cost of the audit. Planning Auditing standards require that an auditor prepare adequate planning for an engagement. The amount of audit planning needed is in direct relation to the size and complexity of the organization. Audit planning involves obtaining an understanding of the organization’s
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Case 8.3: Burlingham Bees: Using Analytical Procedures as Substantive Tests Required: 1. According to professional standards (AU 329): The auditor's reliance on substantive tests to achieve an audit objective related to a particular assertion may be derived from tests of details, from analytical procedures, or from a combination of both. The decision about which procedure or procedures to use to achieve a particular audit objective is based on the auditor's judgment on the expected effectiveness
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