Homework #2 Chapter 4 4-8 If the partner is part of an audit engagement, they can not own stock for the company in which they are responsible for reporting the audit for, even if the client is out of another office. The audit report must be from an individual that is independent of the company. As for the professional staff members, they too can not own stock with any of the clients they conduct audits with, if they have been assigned to engagement or if they become partner of the office
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Delima Enterprise Sdn Bhd is founded by Encik Zayed in 1981. Encik Zayed himself is the managing director and his wife, Puan Hashimah is the Chief Operating Officer. The other personnel, Puan Balqis and Encik Salam both are family members to the directors. All personnel have only secondary school background and on 2006, the company had hired Cik Amy as Finance Executive who just graduated and no working experience. In May 2006, the company secured a contract worth RM 750,000. Due to shortage of
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Case 1.1 1) Five procedures an auditor should perform in determining whether to accept a client are an independence check, checking management integrity, the nature of disagreements, communication with previous auditor, and reason for auditor change. Communicating with the previous auditor, evaluating management integrity and the independence check are required by the auditing standards. 3) The following non-financial should be considered before accepting Ocean as a client are a high auditor
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accuracy and validity of the data leading to bad decisions and may also end up killing the company. An audit of a financial statement must be non-biased and should increase the degree of confidence of the intended users and hence must be carried by an external member who has no personal ties to any of the partners in the firm. Also, as the division of profits and losses depends on the financial statements it is necessary to ensure there is no deliberate misstatement of finances that benefits one of the
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Anne Aylor Case [a] Why are different materiality bases considered when determining planning materiality? Financial information have a lot of different areas and its now equally important for its users. In the case of auditor, based the preliminary procedures performed and the nature of the entity, only some areas that he would need to be focus on. [b] Why are different materiality thresholds relevant for different audit engagements
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CASE NO. 4 CORPORATE GOVERNANCE: VALUES VERSUS ETHICS 1. Is Manuel Dolorica still liable with the accusations brought out by the whistle blower? No, Manuel Dolorica is no longer liable with the accusations brought out by the whistle blower. The moment the whistle blower came out and made known to the public the corruptions of government officials, Manuel is not working as an auditor for the government anymore. As an auditor, he performed his responsibility of auditing the government funds and
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1. Discuss the environmental, strategic and organizational changes that occurred over the life of Andersen in the context of Figure 11.1. Architectural design of firm may vary among companies. There are most common categories are business environment, strategy, and organizational architecture. Business environment of Andersen includes technology that was used effectively; structure of its markets, regulations which helped Andersen to grow along with its reputation. The second category is strategy
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Cendant Corporation Evaluating Risk of Financial Statement Fraud and Assessing the Control Environment • Describe the auditor's responsibility for considering a client's internal controls • Describe the auditor's responsibility to detect material misstatements due to fraud • Identify red flags present during the audits of CUC International, Inc.'s financial statements, which suggest weaknesses in the company's control environment (CUC was the predecessor company to Cendant Corporation)
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Audit Process Planning The auditor will review any prior audits in your area and professional literature. The auditor will research applicable policies and statutes and prepare a basic audit program to follow. Notification The auditor will notify the appropriate department or departmental personnel regarding the upcoming audit and its purpose, at which time an entrance conference will be scheduled. Entrance Conference The entrance conference will include management and any administrative personnel
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Function | Finance | Process Name | Verification of Vendors Invoices by External Party for Project Work | Sub-process Name | Sample Physical & Field work verification by Third party as per invoice submitted by vendor | Process Code | | TABLE OF CONTENTS Section | Contents | Page Number | I. | Process Owners | 2 | II. | Process Overview | 3 | III. | Process Details | 4-7 | IV. | Annexure and Formats | 8 | PROCESS OWNERS Particulars | Names | Contact No | Email ID |
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