MCGILL UNIVERSITY Desautels Faculty of Management MID-TERM EXAMINATION | | | STUDENT NAME | | STUDENT NUMBER | PRINCIPLES OF AUDITING ACCT 475-001 LECTURER: | Ralph Cecere, CPA, CA | | DATE:TIME: | Tuesday, February 25, 20142.5 Hours | | | | | | INSTRUCTIONS: 0 This is a CLOSED BOOK examination. 1 ONLY TRANSLATION dictionaries are PERMITTED. 2 Noiseless non-programmable calculators are PERMITTED. 3 READ BOTH THE QUESTIONS & EACH REQUIRED
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ABSTRACT Auditing disclosures play an important role within accounting reports as they provide a level of assurance to the users (public). These disclosures will be discussed in light of the collapse of Health International Holdings (HIH). The HIH collapse warranted a Royal Commission investigation and also recorded the biggest corporate collapse in Australia's history. Corporate failures of similar magnitude such as Enron and Parmalat have occurred elsewhere and sparked large scale investigation
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FORENSIC AUDITING As stated by Gordon Brown, the former Prime Mister of the United Kingdom, “what the use of fingerprints was to the 19th century and DNA analysis was to the 20th century, forensic accounting will be to the 21st century”. When people first see the word “forensic”, they naturally categorize it into a science-related field. According to Webster’s Dictionary, the term “forensic” is defined as “belonging to, used in, or suitable to courts of judicature or to public discussions and debate”
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Financial Statement Insurance This is a proposal to increase the effectiveness of corporate governance in the post-Enron era through the implementation of financial statement insurance. This paper gives a brief history of the purpose of financial statements as well as the importance of external auditing of financial statements. It gives examples of the corporate governance failures of companies like Enron and WorldCom. It covers how and why these failures happened and reviews the grave consequences
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Auditor’s Responsibility for Assessing Going Concern In auditing, going concern is identified as an entity’s capability to continue operating as a business entity. It is the auditor’s responsibility to evaluate the company’s financial statements to assess whether or not the going concern assumption is appropriate. An entity is obligated to include a disclosure in the footnotes of the financial statement stating if there is substantial doubt of the company to continue as a going concern.
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The Sarbanes-Oxley Act of 2002 Presented by: Ibrahim M. Conteh; Ruby Proctor Garcia; Kathleen M. Parry; Joseph M. Schmerling; Jaime Ulloa Auditing Theory and Practice 0902 ACCT422 4021 Due: April 29, 2009 Table of Contents Page Number What is the Sarbanes-Oxley Act of 2002? 3 Why was SOX established? 4 When did SOX take effect? 5 What companies were affected and how? 6 What does SOX compliance require
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Subjects for study Six subjects and Seven Papers of study in IPCC are – Group I Paper 1: Accounting (100 marks) Paper 2: Law, Ethics and Communication Part I: Law (60 marks) Business Laws (30 marks) Company Law (30 marks) Part II: Business Ethics (20 marks) Part III: Business Communication (20 marks) Paper 3: Cost Accounting and Financial Management Part I: Cost Accounting (50 marks) Part II: Financial Management (50 marks) Paper 4: Taxation Part I: Income-tax (50 marks) Part II: Service Tax (25
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categories of AIS: know the difference Manual systems * Generally used by small organizations. Entirely manual system would require: * Source document * Turnaround document- Company output sent to an external party, who often adds data to the document and then are returned to the company as an input document. Machine readable format. Improves accuracy by eliminating the potential for input errors when entering data. Paper based, sent from organization to customer, same doc is returned
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documentation most likely would include a copy of the | | | Flowchart of the internal control activities. | | | Articles of incorporation. | | | Bank reconciliation. | | | Pension plan contract | | | According to the auditing standards, which of the following terms identifies a requirement for audit evidence? | | | Adequate. | | | Reasonable. | | | Disconfirming. | | | Appropriate. | | | During the confirmation of accounts receivable, an auditor
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2013 Author Note This paper was prepared for AMBA630 Economics Management Decisions, Section 9045, taught by Professor Victor Bahhouth. Executive Summary In order to avoid fraudulent reporting, the Securities Exchange Commission (SEC) has mandated that auditing for organizations must be completed by independent accountants. Today scrutiny of the accounting industry is more intense as laws are created to punish those that choose to falsify information. This paper aims to explain the importance
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