o Question external audit procedures – not clear what justification was used to convince the auditors that the changes were justified Cookie Division 1. 2008: Early-order program, shipping around the clock at the end of a quarter, ship unordered products, fraudulent orders with subsequent attempts to make the orders “stick.” o These techniques met with some success – revenues were increased o However long-term relationships with customers threatened Again – question lack of external audit procedures
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Question external audit procedures – not clear what justification was used to convince the auditors that the changes were justified Cookie Division 1. 2008: Early-order program, shipping around the clock at the end of a quarter, ship unordered products, fraudulent orders with subsequent attempts to make the orders “stick.” o These techniques met with some success – revenues were increased o However long-term relationships with customers threatened Again – question lack of external audit procedures
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analysis and assessment of data and business processes. An external audit will assess the computer-based accounting system and provide judgment on the accuracy and fairness of financial statements. “The fairness evaluation is conducted in the context of generally accepted accounting principles (GAAP) and requires application of generalized auditing standards (Bagranoff, Simkin, & Strand Norman, 2008, p. 343). Information technology (IT) auditing evaluates the AIS by ensuring data and information is
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A Report On Audit planning, Strategy and Audit Program Opsonin Pharmaceutical Date of submission 20-02-2014 F-310: Auditing Department of Finance University of Dhaka Submitted To: Md. Salahuddin Chowdhury Assistant Professor Department of Finance University of Dhaka Submitted By: SL No. | Name | ID No. | Remarks | 01. | Md. Shiblur Rahman | 17-025 | | 02. | Md.Saddam Hossen | 17-023 | | 03. | Deloar Hossen | 17-027 | | 04. | Md. Rahatul Islam | 17-109 | | 05
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inventory only occur semi-annually, management’s ability to alter these checks, and the cheer ability to miscount items due to sheer volume. Phar-Mor was capable of misleading their external auditors because the auditors of a retail store are not required to physically examine the inventory in each store. The auditing firm only examined inventory in four of the one hundred and twenty nine stores that existed. Phar-Mor also knew in advance which locations were going to be audited which allowed them
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Chapter 2 Literature Review 2.0 Introduction The quality of the audited report is an important and basic aspect for ensuring the credibility of the financial statements to those related parties such as investors, creditors (Shafie, et al., 2009). Generally speaking, this will not appear if auditors are not independence. The whole audit progress would be argued that the auditor had given the bias opinion to the client if there was no independence. Therefore, the accounting profession such
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assisted auditing techniques (CAAT) for many reasons. They enable auditors to use software applications, extract data for analyzing, look for trends within the data, and identify potential areas for fraud or even detect fraudulent data. CAATs are a valuable tool for auditors to test and validate computer applications and they can determine whether or not the source code has been compromised. The implementation of CAATs will increase efficiency and the effectiveness of both internal and external audits
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4. What are the auditor independence issues surrounding the provision of external auditing services, internal auditing services, and management consulting services for the same client? Develop arguments for why auditors should be allowed to perform these services for the same for client. Develop separate arguments for why auditors should not be allowed to perform non-audit services for their audit clients. What do you believe? Non-audit services provided by auditors to their clients fall
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develop and maintain financial data bases, computer software systems and manual filing systems. 11. Supervise the input and handling of financial data and reports for the company's automated financial systems. 12. Interact with internal and external auditors in completing audits. 13. Other duties as assigned 2.
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Instead of being concern with the accuracy of Enron’s external audit, Andersen made the profits their priority. The firm offered consultation to Enron which amounted to a larger price tag than the actual external audit. So, not only did Andersen double check their own work, but Andersen threw their objectivity out the window for extra earnings. Andersen knew that it was not ethical to give audit and non-audit services because it would make the external audit biased and therefore worthless to the public
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