Going Concern The auditor's objectives in relation to going concern ISA 570 contains well-established guidance on going concern, including the following objectives for the auditor: • to obtain sufficient appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of the financial statements • to conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
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The biggest threat to auditor independence is the inherent economic bond that exists between auditors and their clients. The livelihood of an auditor, and their firm, is directly related to the exchange of services for money. The bond creates inherent risk that an auditor could compromise their independence to keep or gain the business of a client. Companies commonly only want a standard unqualified opinion and pressure the auditors to be flexible in order to gain a clean opinion. It is the auditor’s
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Audit Processes * 1. Notification * 2. Planning * 3. Opening Meeting * 4. Fieldwork * 5. Communication * 6. Report Drafting * 7. Management Response * 8. Closing Meeting * 9. Report Distribution * 10. Follow-up Notification First, you will receive a letter to inform you of an upcoming audit. The auditor will send you a preliminary checklist. This is a list of documents (e.g. organization charts, financial statements) that will help the auditor learn about
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Auditors and Regulatory Oversight Raquel Avila ACC 403 Auditing Professor Dawn Carter May 8, 2015 The purpose of most businesses is to provide a service or product, and to make a profit while doing so. Businesses have many stakeholders, such as investors, board of directors, and employees. Even customers can be stakeholders if they really enjoy a service or product that they get from that particular business and don’t want them to go out business. Unfortunately, the desire to make
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Types of audits Once a tax return is determined an eligible candidate for auditing, the IRS will send you a letter making the announcement of an audit. The type of audit you’ll be required to do typically falls into one of three types: Correspondence audit: The most common of audits, this typically entails mailing specifically requested documentation to the IRS. Field audit: For individuals or businesses who’ve earned more than $100,000 in income, the IRS is more likely to send an IRS agent to your
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CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT NATOSHA WHITAKER Strayer University Professor Cito Vanegas August 29, 2015 CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous audit scores into consideration and conduct detailed risk assessments with There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous
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The Anonymous Caller Recognizing It's a Fraud and Evaluating What to Do[1] Learning Objectives • After completing and discussing this case you should be able to • Appreciate real-world pressures for meeting financial expectations • Distinguish financial statement fraud from aggressive accounting • Identify alternative actions when confronted with suspected financial statement fraud • Develop arguments to resist or prevent inappropriate accounting techniques
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1. Which of these assertions were relevant to Paragon’s construction projects? For each of the assertions that you have listed, describe an audit procedure that Arthur Andersen could have employed to corroborate that assertion. We think the assertions relevant to Paragon’s projects are as follows: 1) Existence and occurrence, 2) Completeness, and 3) Valuation or allocation. The case details mention two examples of Paragon’s aggressive revenue recognition that Arthur Andersen would have caught
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Independent Auditor’s Report [Appropriate Address] Report on the Financial Statements We have audited the accompanying consolidated financial statements of ABC Company and its subsidiaries, which comprise the consolidated balance sheet as of December 31, 20x1 and 20x0, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements
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auditing activities. This does not mean being the only one doing the auditing work. That can be done by any party competent to conduct independent review of the program managers’ monitoring programs. This may include the compliance officer, internal or external auditors, consultants, or any combination thereof. The
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