The successor auditor could speak to the predecessor auditor, local attorneys, other CPAs, banks, and other businesses. For prospective clients that have previously been audited by another CPA firm, the new (successor) auditor is REQUIRED by auditing standards to communicate with the predecessor auditor. The burden of communication rests with the successor auditor but the predecessor is required respond. The predecessor does have to get the client’s permission before making communication with
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provided and continue to provide various auditing and assurances services to our clients. I have extensive background in retail industry. I am writing this letter to confirm our upcoming arrangement with Apollo Shoes and briefly introduce you to our company. Anderson, Old, and Watershed, CPAs, LLC is a nationally renowned firm that offers complete set of services design to help businesses achieve and exceed their business goals. Our services include; * Auditing & Assurance Services * Accounting
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Jocelyn Lin- 42884462 1. Case 1-2 Part A, D and F Explain 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
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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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The P.C.A.O.B. review of PwC The Sarbanes-Oxley Act On July 30th, 2002 the 107th Congress of the United States enacted public law 107-204, better known as the Sarbanes-Oxley act. This congressional action was in response to many unscrupulous acts by major corporations which caused investors to lose confidence in the capital markets. The major issues were caused by three main organizations, Enron, WorldCo, and Tyco. Enron, did not accurately record their debt obligations. They also recorded gains
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Economics Statistics Auditors are those professionals who assure that all the financial statements are prepared according to the rules and regulations of Generally Accepted Accounting Principles (GAAP) or Financial Accounting Standard Board (FASB). There are two types of auditors which are internal auditors and external auditors. Importance and difficulty level of decisions significantly differs from one profession to another. Auditors decide on the basis of available data of organization including
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A college student decides she wants to become an accountant. General accounting and bookkeeping classes can be taken in high school. In college, the student needs to decide on a more specific field of accounting. An accountant has many choices as to what particular field of accounting to specialize in depending on the financial information she wants to analyze and how it is done. Financial accountants, tax accountants and internal auditors are all accountants in general, but require different training
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Control activities Control activities are the actions established through policies and procedures that help ensure that management’s directives to mitigate risks to the achievement of objective are carried out. Control activities are performed at all levels of the entity at various stages within the business process, and over the technology environment. Principles * 3.1 The organization selects and develops control activities that contribute to the mitigation of risks to the achievement
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Audit Assignment Case: Burnaby Wholesalers Ltd. INTRODUCTION: Burnaby Wholesalers Ltd. is a closely held company. The company distributes building materials, hardware, and related products to retail stores that service the “do-it-yourself” home improvement market. The company operates in a very competitive industry and the company’s profit margins and sales have both been decreasing during the last several years as new competitors have entered the market. The company’s fiscal year end is Sep
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Question 3: Briefly discuss the key events that led up to the Sarbanes- Oxley Acts of 2002 and the Creation of the PCAOB. Answer 3: In the mid 1990s America experienced a flourishing economy. The stock market rate rose at increasing rates. This motivated accounting firms to desire to expand their business. In the 2000s there was a bubble burst, stock prices plummeted as investors fled the market. IPOs also disappeared and this event led to the revelation other flaws in the market. It became
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