CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied
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ethical responsibilities of accountants; professional auditing standards; the audit risk model; the acquisition, evaluation and documentation of audit evidence; reports on the results of the audit engagement. Learning Objectives: When you complete this course, you should: Understand the audit process, including audit procedures, and audit reports Understand the professional responsibilities of CPAs Understand audit risk assessments and planning Be able to research auditing standards Be able
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1. Justify how the reporting requirements of the PCAOB reduce the chance of financial fraud. Basically, the goal of the Public Company Accounting Oversight Board is to improve quality of audited financial statements, reduce the risk of auditing failures, and increase public trust in financial reporting processes and of the auditing profession. In order for this to happen PCAOB must refocus and remind auditors of the standards required of them regarding fraud and for them to be diligent about their
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| |To obtain appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of the | |financial statements; | |To conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
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accountants were licensed by the states to audit corporate financials; however the states had very little, if any, money to provide the necessary funds for enforcement. “Public accountants were licensed by the states, but states devote few resources to supervising auditors; federal regulation of auditing was light; and no federal agency supervised auditors. A Public Oversight Board for auditors was created in 1978, but it was dominated by accountants, funded by the audit industry, and had no full-time directors
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BENSON IDAHOSA UNIVERSITY BENIN CITY COUSE CODE: ACC 811 TOPIC: EXAMINE THE ISSUES WHICH WERE THROWN UP IN THE CBN AUDIT OF THE NIGERIAN BANKING SYSTEM IN 2009 AND ASSESS THE EXTENT TO WHICH THIS COULD BE ATTRIBUTED TO ACCOUNTING FAILURE BY OBOR OMUEKPEN EVARISTA (MSC ACCOUNTING) EXECUTIVE SUMMARY The reform started when it became clear that poor corporate governance practices, over and undue exposure to the capital market, oil and gas sector, poor risk management practices and inadequate
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factors that affect the risk of material misstatement -design tests of controls and substantive proceduresThe auditor’s understanding of the internal control is a majorfactorindeterminingtheoverallauditstrategyThemajor factor in determining the overall audit strategy. The auditor has a responsibility to: (1)obtain an understanding of internal control and ()g(2)assess control risk. 6-3 InternalControlLO# 2 Internal Control Objectives Reliability of Financial Effectiveness & Efficiency ofOperationsCompliance
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auditors. The company was incorporated in Swaziland on 01 March 2012. The authorised and issued share capital of the company is 55 000: El shares. Sandile Khumalo, popularly known as 'SK' amongst his peers is the audit senior in the Chelsea engagement. He is a very competent clerk and his audit work has been credited as one of the best in the history of the firm. Sandile has prepared the following working paper in relation to the Chelsea engagement for the attention of the Team Manager and Engagement
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A Letter from Prison: Background: Introduction to Accounting Ethics. Reading Assignment: The case Summary of Sarbanes-Oxley (2nd page of this document) Pages 18-19 of the text. Assignment Questions: 1. What did Stephen Richards and other members of Computer Associates management do? 2. What impact did these actions have on financial statement users? 3. What were the motivations for these actions? 4. Do you believe the actions taken by Richards and other members of Computer Associates' management
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recently: a new Vice President has been appointed. MA has switched to another audit firm since the new VP is a good friend of the former engagement partner resulting in a conflict of interest. MA has now appointed E&Y as its new audit firm. The engagement partner has, in turn, appointed you to gather information about MA ‘s general and application controls as well as some of CAATs that we can use in this new audit. You spoke to some of MA’s employees and did some additional research regarding
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