CONTROL AND AIS (Version 1 – Brief, just for the exam) Overview of Control Concepts * Internal Control - plan of organization and the methods a business uses to safeguard assets, provide accurate and reliable information, promote and improve operational efficiency and encourage adherence to prescribed management procedures. * Management Control - broader than internal control 1. Integral part of management responsibilities. 2. Is designed to reduce errors and irregularities
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Committees Ethical Dilemmas What rationalization does a company make to justify a corporate culture where ethics are ignored? In recent years, greed, fraud, and a lack of ethical conduct have led to the collapse of many organizations. A variety of internal and external pressures can lead companies down the wrong path. And once the first misstep is taken, it’s a slippery slope to hurting stakeholders, the community, and your reputation. This turmoil and damage could have been avoided if organizations
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conducts and practice) and ISA220 Quality Control for an Audit of Financial Statements, do you believe that the engagement leader of an audit (like David Duncan on the Enron audit) should have authority to overrule the opinions and recommendations of the accounting & auditing function? Why or why not? In our opinion, the engagement leader of an audit should not have the authority to overrule the opinions and recommendations of the accounting and auditing function. To support our judgment, we refer
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Sarbanes-Oxley Act on corporate culture (1) Increase in accounting costs (2) Increased records-management requirements (3) Salary increases (4) Increase in audit fees B. Need for Continuous Auditing/ Continuous Monitoring and its benefits C. Role of internal Auditing and Management. D. Identification of Control Deficiencies – What is the Act doing to minimize. E. Fraud/Scandal, Waste,
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Auditing and Assurance Services 14th Edition By Arens, Beasley and Elder– Test Bank Score A Grade In your Quizzes (Exams) Click Here to Purchase the Test Bank All 26 Chapters Quiz Answers Email me if there is any problem or if you need help with your other classes assignments, problems or quizzes. ewood6449@gmail.com Auditing and Assurance Services, 14e (Arens) Chapter 1 The Demand for Audit and Other Assurance Services Learning Objective 1-1 1) The Sarbanes-Oxley Act applies to which of the
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Danielle A. Smalls ACC 747 Advanced Topics in Auditing July 21, 2015 Case 1.1 Waste Management Case 1.1 Waste Management: The Expense Recognition Principle 1. The expense recognition principle also known as the “matching” principle is when expenses should be recognized in the same period as the revenues to which they relate. This principle is important to users of financial statements because if this principle is not followed stakeholders of a company can be deluded to thinking
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Auditing and Assurance Services Thirteenth Edition Global Edition Alvin A. Arens Randal J. Elder Mark S. Beasley [pic] Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul
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assertion level consists of two components:Control risk and Inherent risk. According to ISA(NZ)200 paragraph 13, Control risk and Inherent risk are the entity’s risks. They exist independently of the audit of the financial report. It also refers to inherent risk and control risk as a combined assessment of the “risk of material misstatement”. According to ISA(NZ)200 para.13(n)(ii), Control risk is defined as the risk that a misstatement which could occur in a account balance or class of transactions
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THIS ARTIcLE OUTLINES AND ExPLAINS THE cONcEPT Of AUDIT RISK, MAKINg REfERENcE TO THE KEY AUDITINg STANDARDS WHIcH gIVE gUIDANcE TO AUDITORS AbOUT RISK ASSESSMENT. 01 TEcHNIcAL audit risk RELEVANT TO AccA QUALIfIcATION PAPERS f8 AND P7 AND This article outlines and explains the concept of audit risk, making reference to the key auditing standards which give guidance to auditors about risk assessment. Identifying and assessing audit risk is a key part of the audit process, and
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Communicating Internal Control 1843 AU Section 325 Communicating Internal Control Related Matters Identified in an Audit (Supersedes SAS No. 112.) Source: SAS No. 115. Effective for audits of financial statements for periods ending on or after December 15, 2009. Earlier implementation is permitted. Applicability .01 This section establishes standards and provides guidance on communicating matters related to an entity's internal control over financial reporting identified in an audit of
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