Chapter 9 Multiple-Choice Questions |1. |If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then| | |that information is, by definition of FASB Statement No. 2: | | |a. material.
Words: 5287 - Pages: 22
create personal preconceived notions (Porter and Simon et al., 1996). Audit improves the trustworthiness of the financial statements giving it sensible assertion from an independent source that the financial statements is true and fair in agreement with accounting standards (Olagunju, 2011, pp.85-86). The next section of this essay provides detailed information on how value is added to the financial statement when the auditors’ audit with independence whilst appraising how the accounting profession
Words: 2487 - Pages: 10
and auditing functions. A main focus of Sarbanes-Oxley was the establishment of the PCAOB. The PCAOB is a nongovernmental body, fully funded by fees collected by public and investment companies that benefit from independent audits. They are charged with overseeing the audit of public companies that are subject to SEC laws and related matters of the kind. Carmichael states that the confidence is not only to be earned by the accountants and auditors producing and reviewing the information, but also
Words: 1009 - Pages: 5
A.2 Case Waste Management Synopsis In February 1998 Waste Management announced that it was restating its financial statements for 1993 through 1996. In its restatement, Waste Management said that it had materially overstated its reported pretax earnings by $1.43 billion. After the announcement, the company’s stock dropped by more than 33 percent, and shareholders lost over $6 billion. The SEC brought charges against the company’s founder, Dean Buntrock, and five other former top officers. The
Words: 5975 - Pages: 24
Case 4 - Exercise 4-2 (a) INTERNAL CONTROL - PRELIMINARY ANALYSIS CLIENT: SYSTEM: DATE: PREPARED BY: List each document found in this system, the number of copies, and whether it is prepared internally or externally. Answer each of the following questions. For each "No" answer, comment on whether an internal control weakness is indicated. |QUESTION |YES |NO |COMMENT
Words: 311 - Pages: 2
THE COLLAPSE OF ENRON & THE INTRODUCTION OF THE SARBANES OXLEY ACT BY TREVOR GARRETT 02/25/2011 Abstract Enron Corporation was one of the largest energy trading, natural gas and Utilities Company in the world that was based in Huston, Texas. The downfall of Enron is one of the most infamous and shocking events in the financial world, and its reverberations were felt around the globe. Prior to its collapse in 2001, Enron was one of the leading companies in the U.S and considered among
Words: 3098 - Pages: 13
However, if an emergency or unavoidable conflict on a particular day causes you to miss class, you may attend another section. Please do not abuse this privilege. Instructor Mark Bradshaw, M.P.A., M.B.A., J.D. Forensics Consultant to PwC Audit Professor in Residence, KPMG (2007) Office: GSB.5.124E; Ph.: 475-8852; E-mail: mark.bradshaw@mccombs.utexas.edu Office hours: Tuesdays and Thursdays from 11:15 – 12:15 and by appointment. I generally prefer e-mail as a means of contact outside
Words: 4401 - Pages: 18
Running head: Auditing Introduction Letter Auditing Introduction Letter From: Charles, Olds and Waterford, CPA To: Apollo Shoes Inc. Dear Mr. Lucas, As the auditor of a local audit firm, Charles, Olds and Waterford, I feel privileged of being given an opportunity to highlight certain aspects of our firm and the services we offer. Considering your precious time, I would try to keep the information as precise as possible. Our firm, Charles, Olds and Waterford has been in business
Words: 748 - Pages: 3
Many people are familiar with the role of the ethics in the auditing profession which basically is integrity and objectivity for the auditors. This essay addresses dimension of the ethics in the profession of auditing main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their
Words: 1470 - Pages: 6
The attached brief explores audit productivity software used by Kudler’s audit firm and how it can help Kudler improve its operation and plans for expansion. Computer Assisted Auditing Techniques Computer Assisted Audit Techniques (CAATs) are computer base tools that an auditor uses to carry out various automated tests to evaluate the IT system or data. CATTs are very useful when the company has a significant volume of audit data in an electronic format (IT Audit Manual, 2011). Kudler Fine Foods
Words: 1767 - Pages: 8
