recommendations of the following reports: The Cadbury Report 1992 Recommended a ‘Code of Best Practice’ This was a voluntary code and its main proposals were related to: The composition of company boards The length of directors contracts Disclosure of remuneration packages Auditing matters Greenbury Report 1995 Reinforced the ‘Code of Best Practice’ recommended by Cadbury and made further recommendations regarding matters relating to directors’ remuneration. Hampel Report 1998 ‘Fine tuned’ the
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Case Studies to accompany Auditing and Assurance Services in Australia by Gay and Simnett Prepared by Renee Radich and Philip Ross [pic] McGraw-Hill Australia [pic] A Division of The McGraw-Hill Companies Copyright © 2002 McGraw-Hill Australia Pty Limited Additional owners of copyright are named in on-page credits. Apart from any fair
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Government regulated monopoly GAAP General Standards 1. Adequate training and proficiency 2. Independence in mental attitude 3. Due professional care Standards of Field Work Proper Planning and supervision Understanding of the entity Sufficient appropriate evidence Standards of Reporting Statements prepared in accordance with GAAP Circumstances when GAAP not consistently followed Adequacy of disclosures Expression of opinion on financial statements *Test* Table 5.1 Definitions
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the auditor’s report to develop a different grading system and increase the value of auditing to society? Regulatory attempts to improve the functioning of capital markets often try to make corporate activities more transparent. The International Auditing and Assurance Standards Board (IAASB) invited comments on its proposals contained in “Improving the Auditors Report,” with an exposure draft expected to be issued by June. These proposals are intended to make the audit report more useful, and
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ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 547–568 American Accounting Association DOI: 10.2308/iace-50004 Koss Corporation Case: Trouble in Brew City Brian Daugherty and Daniel G. Neely ABSTRACT: This instructional case provides auditing students an opportunity to examine an interesting real-life embezzlement and financial statement fraud occurring at a publicly traded company in the post-Sarbanes-Oxley (SOX) era. The case focuses on independent auditors’ and senior management’s
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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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“self-fulfilling prophecy” for Surfer Dude, Inc. Mr. Baldwin’s concerns regarding a going concern report are for the future of the company. He believes, as most management, that substantial doubt of going concern would be the start of failure for the company. Baldwin is concerned with the company’s ability to obtain loans or order supplies on account if a doubt for going concern is presented in the audit report. The reputation of the company is also at risk when the going concern is in doubt.
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2010 to 2011. The cash flow has also increased over the last year by eleven million dollars. Some things on the balance sheet that were of some concern were the shareholders equity declined and the long term debt increased (Wal-Mart 2011 annual report). My concern with the shareholder’s equity declining is that other potential shareholder and investors may look at this and think twice about investing in the company. The one thing an investor hopes to receive is a return on their investment, cash
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STUDY LIST & ESSAYS FOR THE FINAL Fall 2013 AICPA and PCAOB standards on computers can be used for the whole exam, keep time limits in mind Numbers in red are incomplete or need additional information. Some in red may not need additional information, but if additional information can be provided that will help with essays add it. 1. Code of Professional Conduct as it relates to the cases that we discussed -Rule 101 Independence-A member in public practice shall be independent in
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financial statements. The typical audit performed in accordance with generally accepted auditing standards (GAAS) involves obtaining and evaluating evidence concerning management's financial statements. Auditing culminates in the issuance of an audit report that contains the auditor's opinion on whether the financial statements do in fact present fairly the entity's financial position, results of operations, and cash flows in conformity with GAAP. The auditor is responsible for forming and expressing
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