Case 3.1 1. The alternatives available to Brent are working at the normal pace, trying to rush the work with the normal sample size, or cut the sample size. If Brent chose to work at the normal pace he would get the best and most accurate result. Being accurate and sure of the results is what Brent’s employer expects out of him. Brent’s next option is “eating time” i.e., working off the clock, and then turning in that he worked the 35 hours to come in at budget. The pro to this option is that
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behalf of the Board of Directors. Barnes & Noble also uses and independent auditor that is responsible for expressing an opinion of conformity of the organizations audited financial statements to generally accepted accounting principles. The internal external auditors must review and discuss with senior management the audited financial
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Audit Problem 6-32 pg. 172 A) The bank decided that the assurances provided by a review would be needed before the large loan would be approved, but the audit was something Rene wanted. A review includes a CPA firm performing analytical procedures, making inquiries about the fair presentation of the statements, and examining the information for Reasonableness. Because of a CPA firm’s expertise in accounting, the accountant from the CPA firm can often identify incorrect presentations
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Among the ten generally accepted auditing standards is the standard that requires an auditor to have independence in mental attitude. As with so many rules and guidelines set forth by the government and numerous other organizations, the interpretations of many of these rules can be vastly subjective. During the case against Health Management’s founder Clifford Hotte, his co conspirators and the auditors at BDO Seidman the defendant’s attorney Michael Young brought forth the idea that according to
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Abstract This research paper explores the creation of the Sarbanes-Oxley Act (SOX) and the role Enron played in its enactment. Specifically, this paper will explore and discuss the Enron crisis, emphasizing the legal and ethical accounting breaches committed by the company. The purpose of SOX and the methods used to address those breaches. A discussion of the major provisions of the act including: (1) Establishment of the Oversight Board commonly referred to as the Public Company Accounting
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1. What alternatives are available to Brent in regards to the audit of payables? What are the pros and cons of each alternative? Brent has the option of “eating time” as Han has suggested. This means working off the clock but he will be able to finish under budget and look good at the firm. However, this will have an adverse effect for future budgets making it seem like the audit can be completed in less time than is even possible. Also, it fails to show the accurate cost of completing the audit
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Extreme Estimation Uncertainty and Audit Assurance This study provides evidence that the values reported in the financial statements are sensitive to very small changes in just one valuation input, which, in turn, suggests that reasonable estimation ranges can be many times greater than quantitative materiality. Therefore, auditors are required to provide reasonable assurance defined in auditing standards as “high” assurance, that the financial statements taken as a whole are fairly stated in all
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Article 1 - Carmichael Assignment (REVISED) Group 15 QUESTION 1) WHO IS THE AUTHOR OF THIS PAPER AND WHAT IS HIS POSITION (GIVE DESCRIPTION OF RESPONSIBILITIES) WITH THE PCAOB AT THE TIME OF THIS ARTICLE. The author of this paper is Douglas R. Carmichael. On April of 2003, Mr. Carmichael was appointed the first Chief Auditor and Director of Professional Standards for the Public Company Accounting Oversight Board. As such he was the primary advisor to the PCAOB on policy and technical issues
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ACCA Exam Technique Articles OpenTuition.com ACCA P7 Exam technique ( see also the section on general exam technique ) ๏ put very simply, the way to approach the P7 exam is to “read, plan, read again and then write” ‣ ‣ ‣ work on the principle that each valid, relevant point that you make will score a mark and the more valid points you make, the more marks you will score! common sense? I should say so! ๏ “But the pass rate percentage can be down in the low 30s. If the large majority
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When considering whether or not to accept a new audit client, the successor audit should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining the acceptance of the engagement. Matters subject to inquiry include: information that might bear on the integrity of management, disagreements with management as to accounting procedures, or other similar significant matters, and communications to audit committees regarding
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