letter is to confirm our understanding of our engagement of the approaching auditing process for Apollo Shoes, Inc. Our firm is delighted to carry on the work with Apollo Shoes, Inc. and complete the assessment for the year ending on December 31, 2011. Our team associates would like to attest the audit objectives, terms, limitations, and various services provided for this engagement. Our services will include auditing financial statements such as income statement, balance sheets, statement
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demand for the services of specialists in bookkeeping and in auditing internal and external financial representations. The institutionalization of the audit profession was then merely a matter of time. Management Controls Operations and Communications Management has control over the accounting systems and internal controls of the enterprises that auditors audit. Management is not only responsible for the financial and internal control reports to investors, but also has the authority to determine
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Fraud Auditing and Different type of fraud Introduction Over the years, the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing
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When companies hear the word “audit” first thing that comes to their mind is the IRS. Internal audits however, can help managers manage the organization profitably and more efficiently if internal audit procedures are completed on a regular schedule. Business risk is the risk an entity will fail to meet its objectives, (Louwers, Ramsay, Sinaso, & Strawser, 2007). If an organization fails to meet its objectives repeatedly then the company will fail. To minimize any type of risks decision makers
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Risk based internal auditing Background Over the last few years, the need to manage risks has become recognised as an essential part of good corporate governance practice. This has put organisations under increasing pressure to identify all the business risks they face and to explain how they manage them. In fact, the activities involved in managing risks have been recognised as playing a central and essential role in maintaining a sound system of internal control. While the responsibility for
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A recent article published in Corporate Compliance Insights discusses the importance and benefits of internal audit functions to publically traded companies and potential investors. Author Richard Chambers, CEO of the Institute of Internal Auditors, begins with a bold statistic stating 55% of Americans invest their hard earned money in the stock market, leaving their future financial well-being in the hands of the companies in which they invest in. With this many Americans turning
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still a puzzling, outside America. Auditing and accounting principles in the United States of America are considered strong and sophisticated. Transparency and disclosure are really emphasized in American companies, and because of this the downfall of Andersen and Enron still raises questions. This has since become a case of reference in review of issues concerning financial reporting and auditing. It has also been used to explain about regulations on auditing and accounting inside and outside America
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Sarbanes–Oxley, Sarbox or SOX, is a United States federal law which was introduced in 2002. It is also known as the “Public Company Accounting Reform and Investor Protection Act” and “and 'Corporate and Auditing Accountability and Responsibility Act”. The main objective of the act is to protect investors by improving the accuracy and reliability of corporate disclosures. New aspects are created by SOX act for corporate accountability as well as new penalties for wrong doings. It was basically introduced
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CHAPTER 1 AN INTRODUCTION TO ASSURANCE AND FINANCIAL STATEMENT AUDITING Answers to Review Questions 1-1 The study of auditing is more conceptual in nature compared to other accounting courses. Rather than focusing on learning the rules, techniques, and computations required to prepare financial statements, auditing emphasizes learning a framework of analytical and logical skills to evaluate the relevance and reliability of the systems and processes responsible for financial information, as
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century of professional regulation of auditing. In this analysis we employ sociological theories of professionalism [1-4] to help understand the implications of the Sarbanes-Oxley legislation for the accounting profession and for the public interest. We explain why professional self-regulation is important for retaining valuable economic franchises. We also explain why the public interest orientation of the profession is important and how government take-over of auditing standards potentially erodes the
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