Auditing Standards Essay: Auditing Planning Broadly speaking, audit planning is specific guidelines for auditor to perform an audit. Audit planning is usually conducted at the beginning stage of audit process. AICPA (American Institute of Certificate Public Accounting), PCAOB (Public Company Oversight Board), and IFAC (The International Federation of Accountants) are organizations or non-profit corporations who contributes to developing standards and guidance in auditing area, including standards
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Auditors Our firm offers auditing and other assurance services. Our auditing services are comprehensive, reliable, and objective. Our auditors comply with all required literature and pronouncements in our audits. It is for this reason our clients, external users, and the general public place high value in our work and takes our firm seriously. We don't compromise objectivity or judgment in any part of our auditing work. In addition, we offer valuable assurance services that are custom designed to meet
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CASE STUDY-WEEK 3 We learned in Chapter 2 that the fraud triangle identifies three critical elements that generally must exist in order for fraud to occur. They are: Motive: motivation, incitement, stimulus, spur; influence, occasion, ground, cause. Motive, incentive, inducement apply to whatever moves one to action. Motive is, literally, something that moves a person; an inducement something that leads a person on; an incentive something that inspires a person. Motive is applied mainly to
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factors present at WM that are indicative of each of the three fraud conditions. Firstly, the factors present at WM that are indicative of the incentive or pressure to perpetrate fraud are WM paid large audit fees as well as other related fees to the external auditor AA. This incentive causes AA to treat WM as valuable client and agree to compromise with the company to commit fraud. The other factor is the strong interest of the management in employing inappropriate means to meet predetermined earnings
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INTERNATIONAL APRIL/MAY 2010 ACCOUNTANT FEATURES INCLUDE Issue 52 Banking & Finance Risk & Compliance International Financial Reporting Standards Global outlook Banking & Finance Feature Is corporate governance a modern fantasy? Andrew Higson discusses the reality of financial reporting and asks if corporate governance still has a role to play in the modern business world. W hat is the difference between the collapse of Enron and the recent collapse of the banking
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Answer 1. In our case study, King and Queen are the auditors and the plaintiff that is taking legal action against them is EFL. Negligence can be defined as any conduct that is ‘careless or unintentional in nature and entails a breach of any contractual duty or duty of care in tort owed to another person or persons’.(Godsell, 1993 P23) If EFL wants to claim for negligence than they will have to prove that the four elements exists (Gay & Simnett 2010, p. 153). 1) Duty was owed to the plaintiff
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1. Project Audit Initiation This step involves starting the audit process, defining the purpose and scope of the audit, and gathering sufficient information to determine the proper audit methodology. 2. Project Baseline Definition This phase of the cycle normally consists of identifying the performance areas to be evaluated, determining standards for each area through benchmarking or some other process, ascertaining management performance expectations for each area, and developing a program to measure
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improve the auditor’s independence. Audit committee is the body responsible for overseeing the company’s relations with the external auditor. Therefore, audit committee help in ensuring that there is no conflicts of interest exist that might interfere with the auditor's ability to issue its opinion on the financial statements. Thus, they may help in improving the independence of external auditor. Next, audit committee can improve the objectivity and credibility of financial reporting. This is because,
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Audit plan for testing accounts receivables and revenues. Step1 Reconcile and Select specific balances for confirmation (I remember the first step of audit plan is reconciliation, including the teacher’s ) a) Obtain the accounts receivable subsidiary balances (aged by customer, if possible) and trace totals to the comparative summary of accounts receivable balances (GL accounts). Reconcile the total balance to the general ledger control account balance. b) Select a sample of customer
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Concept of Materiality Materiality is the magnitude of an omission or misstatement of account information that makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement (PCAOB,11). To determine materiality, the preliminary judgment must first be made. To help plan the suitable date to collect, auditors must set a preliminary judgment. A preliminary judgment establishes the greatest amount which
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