Reflection of Auditing Lisa Harris AC410 November 26, 2013 Mark Craymar Reflection of Auditing What I gained from these last ten weeks will enable to have a better understanding of everything that goes on within an audit. In any company there must be segregation of duties to ensure there is no misstatements. I am starting a new job in a few weeks and one of the topics that was discussed during my initial interview was segregation of duties. The discussion evolved around the fact that
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I believe it is vital for auditors to apply biblical principles to their auditing methods. Biblical Application In my own experience working in crusade ministries with the Billy Graham Evangelistic Association (BGEA), we recently completed an external, third party audit of the finances for a crusade in the Philippines. Unlike other countries, the Philippines are very lax when it comes to source documents. Even for large purchases a hand-written receipt is usually accepted. Since it is rather
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Section 101 - Independence[edit] Section 101 sets forth the various requirements to establish auditor independence and conditions that nullify it. Knowingly allowing a member who is not independent to continue to work on an engagement can result in disciplinary action from the AICPA, including possible revocation of the members status as a CPA. Generally, the following actions will impair auditor independence: * Authorizing, executing or consummating a transaction, or otherwise exercising
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System Integrity and Validation ACC/542 Accounting Information Systems August 11, 2014 Irene Branum Preface Kudler Fine Foods began operations in 1998, by Kathy Kudler; the company has grown from one store to three and aspirations to add more locations in the near future. Our company was hired to analyze Kudler’s future accounting technology needs. We recommended a system to automate the accounting functions of accounts payable, accounts receivable, inventory, and payroll. We concluded
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These would be a total cost of $163,000 per year to the company and would include including the cost of purchasing testing equipment to test and inspect our equipment at $86,000 per year. The quality audit would cost us $45,000 per year to hire an external auditor to carry out the audit and appraisal of our operations. The final cost is for material inspection at $32,000 per year. Costs associated with prevention of poor quality would include quality training and staff development costs, cost of production
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1. If I was in Hamilton Wong’s position, I think I would report all of the time I spent working on the Wille & Lomas audit, even if it exceeded the budget. As an accountant, my ethical responsibility is to be honest and have integrity and I will be losing my honesty and integrity if I was not to report the actual amount of worked I did. I would first have to evaluate why it is that I am spending a large amount of time on that part of the audit; is it because I am not managing my time efficiently
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purpose of arriving at an objective conclusion regarding their accuracy, completeness, and reliability. This is called the external audit. Both the internal control and the external audit comprise the audit environment. There are five key players in an organization’s audit environment: the President, the Treasurer, the Finance Officer, the Internal Auditor, and the External Auditor. Each of them has certain responsibilities to ensure the credibility of the audit environment. The following enumerates
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players Based on the issues identified above, determine the key players involved, their position/roles and the main decision that they have to make. Num. Who? Position/roles Main decision 1 Encik Zayed Director 1. Whether to negotiate with the external auditor to issue an unqualified report. 2. Whether to terminate the auditor’s appointment so in order for him to success in applying loan from the banks. 3. Whether to commit and invest on necessary training to enhance the knowledge of the employees
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to show that they suffered the loss due to the auditor’s negligence. Question A • Each store is managed by an owner of the business, which suggests that an external audit is not required. • The company is not public, so there is no statutory requirement for an audit. • If the company borrows from an outside source, then an external audit may be a requirement by the lender. • The existing shareholders are already creditors of the company, and they may wish to have an audit. Question B •
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former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship can put the client
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