useful in obtaining the independent opinion of the auditor about business condition. If the accounts are audited by an independent auditor, the report of the auditor will be true and fair in all respects and it will be of extreme importance for the management of the company. 5. Detection and Prevention of Frauds Just like errors, frauds are discovered by audit and its presence minimizes future possibility if not eliminated totally. 6. Moral Check The process of audit will establish
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coordination of internal audit activity with external audit activity is very important from both points of view: from external audit’s point of view is important because, in this way, external auditors have the possibility to raise the efficiency of financial statements audit; the relevancy from internal audit’s point of view is assured by the fact that this coordination assures for the internal audit a plus of essential information in the assessment of risks control (Dobroţeanu, L.& Dobroţeanu C.L
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providing certain services to clients including: • bookkeeping or other services relating to the accounting records or financial statements of the audit client; • financial information systems design and implementation; • appraisal or evaluation services, fairness opinions or contribution-in-kind reports; • actuarial services; • internal audit outsourcing services; • management functions or human resources; • broker or dealer, investment advisor, or investment banking services; • legal services
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business risks). This can be done by: * Communication w/ predecessor auditor * Gathering info from local attorneys, banks, other businesses * Talk to clients, customers, vendors * Interview management/employees * Hire professional investigator 4. List and discuss management assertions related to an account balance. * Existence – deals with whether assets, liabilities, and equity interest included in the balance sheet actually existed on the balance sheet date. * Completeness
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rdosch@business.und.edu Haskins, James P. jhaskins@business.und.edu O'Keefe, Timothy P. tim.okeefe@business.und.edu Source: Information Management Journal. May/Jun2013, Vol. 47 Issue 3, p32-36. 5p. Document Type: Article Subject Terms: *RECORDS management *FINANCIAL statements *AUDITING *DATA integrity *AUDITING standards *BUSINESS records -- Management *OFFICE management *ELECTRONIC data processing Geographic Terms: UNITED States NAICS/Industry Codes: 518210 Data Processing, Hosting, and Related
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that formula in excel, NPV = $169482 As it is positive, the company should enter the investment. It would be like having an extra $170K in their cash today. b. By how much must the cost of capital estimate deviate to change the decision? (Hint: financial calculator to calculate IRR.) As the cost of capital change, the profitability of the investment varies. We need to calculate the IRR (internal rate of return) which is when the NPV = 0. Plotting the values in excel and using the IRR formula:
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Financial Statements Patty Reagan ACC/561 September 24, 2012 Bethany Kessel Financial Statements The financial statements of a company give the reader a view of the financial health of the company. The four major reports are the income statement, balance sheet, cash flow statement, and the statement of shareholders’ equity. By understanding the statements and how they relate to one another can help any individual to understand the financial position of the company and will aid in making
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2002 This legislation acquired its name after Senator Paul Sarbanes and Representative Michael Oxley. They were the two main architects to bring this law into existence. This legislation came to into realization in 2002 it brought major changes to financial regulations and corporate governance. The Sarbanes-Oxley Act (SOX) is organized into eleven titles. The purpose of this literature is to describe the main aspects of the regulatory environment which will protect the public from fraud within corporations
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effectiveness of internal control over financial reporting.) Independent Auditor's ReportTo the shareholders of Fast Times Corporation,We have audited the accompanying balance sheet of Fast Times Corporation as of September 30, 2009, and the related statements of income, retained earnings, and cash flows for the past year. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.Except
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Introduction A financial institution is an establishment that conducts financial transactions such as investments, loans and deposits. Almost everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major categories of financial institutions and their roles in the financial system. Types Of Financial Institutions And Their Roles
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