The foundation of the audit system where it is starting being govern by the law can be traced in Companies Act 196 and Accountants Acts 1967. In Companies Act 1965, it requires companies to have the accounting records to be audited and in true and fair view. Independence of the auditors also being underline in the Act, where any relationship between the independent auditor and the companies must be disclose, to prevent any conflict in interest when auditing the accounting records. The external auditors
Words: 1490 - Pages: 6
___/ Date 10/20/2013 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC (Securities and Exchange Commission) has substantial influence on the audit of Smackey Dog Food, Inc. This can be seen in the audit standards that have to be followed by the established independence of the auditors involved in the Smackey audit. In the audit of public listed companies which includes Smackey, the auditors need to observe several principles
Words: 1875 - Pages: 8
SOX - A new regulatory agency, Public Company Accounting Oversight Board (PCAOB) was created to increase public supervision of auditors. PCAOB is now involved in the registration of accounting firms, the inspection of those firms with relation to audits, the setting of standards for the accountancy profession and enforcement of violations through disciplinary sanctions. - New requirements concerns internal
Words: 386 - Pages: 2
also established the Public Company Accounting Oversight Board (PCAOB). The PCAOB provides oversight for auditors of public companies, establishes auditing and quality control standards for public company audits, and performs inspections of the quality controls at audit firms performing those audits (Arens, 2010). But the question is, are these regulations effective against corporate fraud and protecting investors? It is my opinion that the most important sections of the Sarbanes-Oxley Act are sections
Words: 1264 - Pages: 6
all Islamic financial institutions are exposed. The role of a Shariah auditor is different to that of a conventional auditor because its remit is derived from the basic values of Islamic society. The most important point to be noted is that a Shariah audit is separate from the financial and operational auditing processes undertaken by Islamic financial Institutions. Deloitte explains in its Islamic Accounting Guidelines that: “Standards for Islamic financial institutions have to be developed because in
Words: 313 - Pages: 2
shredded certain Enron audit workpapers during the midst of a federal investigation of the large energy company. The decision to destroy those workpapers ultimately proved to be the undoing of the prominent accounting firm. A few years later, a felony conviction for obstruction of justice would effectively put Andersen out of business. Ironically, at the same time that the Andersen personnel were shredding Enron workpapers, three senior members of the NextCard, Inc., audit engagement team were altering
Words: 433 - Pages: 2
will be required (for the first time) to submit an annual assessment of the effectiveness of their internal financial auditing controls to the Securities and Exchange Commission (SEC). Additionally, each company's external auditors are required to audit and report on the internal control reports of management, in addition to the company’s financial statements. The effect this had on financial statement was that everyone had to begin to report a more accurate account of the company earning was for
Words: 423 - Pages: 2
The Importance of Accounting in Today’s World In the business world, accounting is one discipline of study that all people, regardless of job position, should have some knowledge of. Its concepts can be applied to all job specialties, its importance has been promoted in recent years, and it is useful in people’s everyday lives. First, an accounting education is important because it can be applied in all job specialties. Secretaries must use accounting skills to manage the company check
Words: 301 - Pages: 2
AUDITOR ) INDEPENDENCE AND AUDIT FIRM ) ROTATION; ) ) NOTICE OF ROUNDTABLE ) ) PCAOB Release No. 2011-006 August 16, 2011 PCAOB Rulemaking Docket Matter No. 37 Summary: The Public Company Accounting Oversight Board ("PCAOB" or "Board") is issuing a concept release to solicit public comment on ways that auditor independence, objectivity and professional skepticism could be enhanced. One possible approach on which the Board is seeking comment is mandatory audit firm rotation, which is explored
Words: 15947 - Pages: 64
Audit problem in AFS American fuel & Supply Inc. use to prepare comparative financial statement for their fiscal year. One their December 31, 1985 financial statement auditor Touche Ross accompanied them by an unqualified audit opinion on February 28, 1986. Several months later Touche Ross discovered that the company’s 1985 financial statement contained a material error. Error was that American Fuel & Supply Inc. billed certain of its customers twice for merchandise that they had purchased; this
Words: 308 - Pages: 2
