CASE STUDY-WEEK 3 We learned in Chapter 2 that the fraud triangle identifies three critical elements that generally must exist in order for fraud to occur. They are: Motive: motivation, incitement, stimulus, spur; influence, occasion, ground, cause. Motive, incentive, inducement apply to whatever moves one to action. Motive is, literally, something that moves a person; an inducement something that leads a person on; an incentive something that inspires a person. Motive is applied mainly to
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How to measure the quality of voluntary disclosure in annual reports The goal of voluntary disclosure is to give more information than required of reporting standards. This to create more disclosure (Scott, 2009, p.109). Although voluntary disclosure provides more information than required, the earnings quality can be questionable. Earnings quality can be defined as the extent to which reported earnings faithfully represent Hicksian income (Schipper and Vincent, 2000). The Hicksian income
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INTERNATIONAL APRIL/MAY 2010 ACCOUNTANT FEATURES INCLUDE Issue 52 Banking & Finance Risk & Compliance International Financial Reporting Standards Global outlook Banking & Finance Feature Is corporate governance a modern fantasy? Andrew Higson discusses the reality of financial reporting and asks if corporate governance still has a role to play in the modern business world. W hat is the difference between the collapse of Enron and the recent collapse of the banking
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Controls is so critical that the U.S. Congress has passed a law, The Sarbanes-Oxley Act, to require public companies or those going public, to maintain a system of internal controls and to require that their auditors examine those controls and issue audit reports as to their reliability (Harrison, 2013). Internal control is important because it prevents fraud or unintentional errors by accomplishing the following five objectives; safe guarding assets, encouraging employees to follow company rules,
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of information for decision makers. Attestation services: 鉴证服务 A type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party. Audit of historical financial statements: A form of attestation services, the auditor issues a written report expressing an opinion about whether the F/S is in material conformity (一致) with accounting standards. e.g.: listed company must provide shareholders
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balance-related audit objectives and tests of details of balances for accounts payable to be sure you understand each procedure and its purpose. Prepare an audit program for accounts payable in a performance format, using the audit procedures in Table 19-5. The format of the audit program should be similar to Table 16-5 (p. 541). Be sure to include a sample size for each procedure. c. Assume for requirement b that (1) assessed control risk had been high rather than low for each transaction-related audit objective
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Select REPRINT option from the screen by press 2 or touch it Select Reprint Last Receipt option and press Enter Select Reprint Any Receipt option and press Enter Type Trace no and press Enter Print Audit Report: 1. Select REPRINT option from the screen by press 2 or touch it 2. Select Print Audit Receipt option and press 4 or touch it Settlement: 1. 2. 3. 4. Select SETTLEMENT option from the screen by press button 4 or touch it Confirm to do the settlement Wait for settlement After settle success
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| |Details of Unit(s) of competency | |Unit Code |FNSACC602A |Unit Title |Audit and Report on Financial systems and records | |Details of Student | |Student Name |
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1. I believe that the Principle Accounting Officer should also be required to attest to the effectiveness of internal controls over financial reporting, in addition to the CEO and CFO. In many corporations, the PAO is also the CFO, and because of their CFO role, are required to attest to the effectiveness of internal controls over financial reporting. In the Koss Corporation, Michael Koss held the roles of both CEO and CFO, so he was the only person required to attest to the effectiveness of internal
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between judgement and action is broken once professional scepticism reaches a point or threshold where the auditor is bound into action. Whether this occurs or not depends on other factors such as the evidential input (link 2). Nelson mentioned that audit planning and opinion is influenced by professional skepticism which is affected by the amount of information the auditor garners about the client. An auditor’s skeptical judgement is influenced by three factors which are knowledge (link 3), personal
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