Introduction The audit expectation gap has been in existence for decades; it was first introduced during the early 1970’s. Collective evidence has gradually shown the existence of the expectation gap. Researchers, Salehi, Ali, Kandasamy, Ojo, Epstein, Geiger, Pierce, Kilcommins, Humphrey, Adeyemi, Uadiale, Monroe, Woodcliff, Jennings, Porter, Sikka, Hassas-Yeganeh , Khaleghi, Dixon, Woodhead, Frank, Lowe, and Smith, have continued to investigate the existence of the expectation gap and its complications
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Discuss whether the current international regulatory environment for the auditing profession is robust enough to ensure that the external auditors of listed companies provide reports to owners and investors which are sufficiently independent to serve the public interest. Introduction As we will discover, the topic posed above is a complex one, which has many arguments both in favour and against the stability of the present regulatory environment in ensuring that the audits which auditors produce
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Environment (December 5, 2008) Representation Letter A letter from management to the auditor representing that the financial statements are fairly presented. The letter is addressed to the independent auditor, and dated at the date of the auditor's report. It is signed by members of management whom the auditor believes are responsible for, and knowledgeable about, matters covered (chief executive officer and chief financial officer). Specific items included in the representation letter are: -
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Executive Summary Imagine a world in disarray. Imagine many people suffering devastating losses from large investments in the securities market, once perceived as providing generous future returns. There have been several events in our nation’s history that have impacted the lives of many Americans. Recent scandals and related corporate failures have triggered new laws and increased regulation in order to restore confidence in the securities market and to provide reliable and accurate information
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also known as annual reports. According to the section 210 of companies act 1956, it is compulsory for every company to presents its annual report before the shareholders in annual general meeting. this annual report Consist profit and loss account , balance sheet , directors report and auditors report. The board of directors of the company are required to publish these reports annually to provide information to the various interested parties. Therefore These published reports are also known as
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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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TABLE OF CONTENTS - CHAPTER 3 I. CHAPTER 3 – RESPONSIBILITIES OF FINANCIAL MANAGEMENT 2 II. PERTINENT POLICIES 2 III. INTERNAL CONTROL 2 A. Overview of Internal Control 3 B. On-the-Job Application of Internal Controls 4 1. Records Management 4 2. Source Documents: Organization and Filing 5 3. Develop Departmental Procedures for Each Financial Process 7 4. Detailed Procedures for Cash Handling 10 5. Perform a Series of Daily, Weekly, Monthly, and Quarterly Tasks 10
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management and those in charge of governance within an organization. The SAS 115 requires the auditor to make communications, in writing, to management regarding imperative deficiencies and material weakness in internal controls that are noted in audit reports. It clarifies standards and provides guidance on communicating matters related to an entity’s internal control over financial reporting identified in an audit of financial statements. The new SAS No. 115 is going to affect this department in three
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Worksheet for You Decide Name Cathie Reid Course Code ACC555 Grade ___/ Date_12_/12_/12_ Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC does not have direct influence over the audit of Smackey Company because, Smackey is not a public held organization, they do not have assets in excess of $10 million, and they do not have over 500 stockholders; which are the requirements for public and privately held companies
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CHAPTER 18 REPORTS ON AUDITED FINANCIAL STATEMENTS Answers to Review Questions 18-1 An auditor is associated with financial statements when he or she has consented to the use of his or her name in a document such as an annual report. 18-2 Accounting changes can be categorized into changes that affect consistency and those that do not affect consistency. The word “consistency” refers to the application of accounting principles. If a change in accounting principle or in the method of its application
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