EVALUATION OF REASEARCH PAPER Title: Audit Research after Sarbanes-Oxley Author: Mark L. DeFond and Jere R. Francis A. Describe the research problem or question. Evaluate the importance of the research question to audit practice. This paper attempts to stimulate research into some of the important questions implicitly raised by SOX regarding the audit profession’s potential failings. Enron’s failure and the accounting scandals at Worldcom and other companies provide compelling evidence that
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Answer [1]: [a] Why are different materiality bases considered when determining planning materiality? Different materiality bases are considered when determining planning materiality because different account and pieces of information are more relevant for different users. A bank may be concerned with the revenue and earnings of a company to determine if the lender will be able to fulfill the debt obligations without a problem. While a stockholder may be concerned with how much income they
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Dear Auditing Committee, I have compared what the audit and review service entails per your request. Audit Services An audit service provides financial statement users with an opinion on whether the financial statements are presented and prepared fairly in accordance with the applicable financial accounting framework (Arens & Elder, 2014). Its responsibilities are to detect misstatements in the financial statements, identify weaknesses in the internal controls over the financial reporting, and
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To understand the activities of microfinance institutions, the auditor should pay attention to: the main concerns of the leaders on the objectives and strategies of the institution, the institution's organizational structure, operation of its business, results of operations, ability to self-finance, operations and other major economic events may affect its financial statements, accounting issues and changes accounting policies, and funding sources. To obtain this information, the auditor should
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Access the PCAOB Website ( www.pcaob.org) and list two new or proposed auditing standards issued by the PCAOB. Auditing Standard no .18: Related Parties The Securities and Exchange Commission (SEC) approved a new Public Company Accounting Oversight Board (PCAOB) standard on auditing transactions with related parties and amendments to PCAOB standards on significant unusual transactions and a company’s transactions and financial relationships with its executive officers. The standard includes new
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a report that identifies and brings about weaknesses of an organization. Security audits allow companied to focus on items that they have to improve on. There are multiple types of security audits: informal audits, formal audits, internal audits, external audits and automated audits (Basta, 2011). Therefore the goal of an audit is to provide accurate view of the organizations internal security controls in order to improve the organization’s security plan. When an audit is first being conducted
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(CAAT) for several reasons. CAATs not only help auditors with software but they can use data for analyzing, look for patterns, and identify fraud (Hunton, Bryant, & Bagranoff, 2004). By using CAATs it will increase efficiency for both internal and external audits. By doing this it will allow auditors to look at all financial information. CAATs are valuable to auditors when testing or validating computer applications because they can determine if codes have been accessed illegally. If audits were conducted
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The auditor’s report is the most visible product of the auditor’s work. According to PSA 200 (Revised and Redrafted) the prime purpose of an audit report is to enhance the degree of confidence of intended users in the financial statements which can be achieved by the expression of an opinion by the independent auditor on whether the financial statements are prepared, in all material respects in accordance with the applicable financial reporting framework. Putra, in his article entitled Understanding
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project and invoices. Satyam created 7500 false invoices of Rs.5118 crore. CBI investigated that Ist fraudlent invoices went through the companies book in 1999. 7. Audit failure- Auditors fail to performed their duty both internal auditors and external auditor. Fake invoices were ignored The matter was not reported to audit committee. Cash and balances were not verified The auditors did not do beginning to end transactions verification Serious findings of the auditing team were ignored by the
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Links 4 1.1.1 How To Do This Task 4 1.2 Navigation Collections 6 1.2.1 How To Do This Task 7 2.0 Pagelet Wizard 11 2.1 Navigation Collection Pagelets 11 2.1.1 How To Do This Task 12 2.2 Query Pagelets 16 2.2.1 How To Do This Task 17 2.3 External Links Pagelets 21 2.3.1 How To Do This Task 22 3.0 WorkCenter Page 27 3.1 Creating a New WorkCenter Page 27 3.1.1 How To Do This Task 27 Appendix A – Template Pagelet Display Examples within WorkCenter Page 31 Appendix B – Security Notation
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