you may see on any upcoming exams. 2006 AICPA Newly-Released Auditing Questions An auditor observes the mailing of monthly statements to a client's customers and reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support management's financial statement assertions of: Presentation and disclosure Yes Yes No No Existence or occurrence Yes No Yes No a. b. c. d. ANSWER: Choice "c" is correct. In testing the existence or occurrence
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course, the student is expected to be able to; a) b) c) d) e) f) Explain what is an audit and the qualifications and duties of an auditor Understand the legal and professional rules governing the audit and the auditor Able to design an adequate internal control system Able to design an audit plan and an audit program to conduct an audit Able to audit a computerized client Able to design an audit report Week Topics Content Time (Hours) Definition of auditing 3 Distinction between auditing
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A charity organization need internal control to ensure that all the resources are properly utilized to achieve organization goals and varies projects. In order to reduce financial risk such as theft, internal control plays an important role. According to the case, the business process of nonprofit organizations is usually not well regulated. In my opinion, a nonprofit organization can implement the following controls to ensure transparency and accountability in its operations. 1. Segregation of
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Evolution of Auditing Abstract It is essential for any business to use physical, mechanical, and electronic controls. Audits are a critical and an important part of every company whether performed internally or externally. The definition of physical control is safeguarding the assets of the business. Mechanical and electronic controls were created to safeguard assets and enhance the accuracy and reliability of the accounting records. Some methods that managiment and auditors can employ to prevent
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to Internal Control According to the textbook, internal control is comprised by five components: Monitoring of controls, Information systems, Control procedures and Risk assessment (Horngren, 2009). SOX included new internal controls and procedures designed to ensure the validity of their financial records. Monitoring of Controls is in direct relation to title I, section 103 of SOX -Auditing, Quality Control, And Independence Standards And Rules. It states the requirements for internal and
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cycle Acquisition and payment cycle All Transactions, orders, and payments processed January 1, 2007 through December 31, 2007 AUDIT OBJECTIVES: • To determine internal control compliance to sub objectives for payroll and personnel cycle, sales/revenue and collection cycle, and the acquisition and payment cycle. • To obtain control evidence and documentation about the existence, accuracy, classification, timing and completeness of recorded acquisition transactions. CRITERIA: Statement on
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publically traded companies to comply to. The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important section within these eleven titles is usually considered to be Section 404, which deals with internal controls. Since 2002, there has been a lot of debate about whether the act has positively or negatively affected corporate America. In this paper I have discussed the opinions of both sides of the argument.
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DESCRIPTION ACC 290 Week 5, 1- The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance
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the section 404 of the Sarbanes-Oxley Act. b) Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls. Describe to Karen the options in selecting a control framework. c) Karen was wondering, if the auditors give a qualified opinion on management’s assessment of internal controls over the financial reporting system, does it mean that the auditor must also give a qualified opinion on the financial statements
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Nortel networks is a giant corporate in telecom industry and as it is expected they also have faced the challenges come from the SOX act. Some of them are in favor and some are against the Nortel. ‘SOX’ has manipulated a larger impact on Nortel internal employee and external customers as well as their financial statement. The outcome of the Nortel is clearly different from before implementing the SOX. This paper is to find out the deeper understanding of SOX, how it governs the public corporate
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