CONSIDER INTERNAL CONTROL .................................... 10 CHAPTER6. PLAN THE AUDIT ............................................................ 13 CHAPTER7. COMPLETE THE AUDIT ................................................... 16 CHAPTER8. EVALUATE RESULTS AND ISSUE AN AUDIT REPORT .... 17 REFERENCE ............................................................................................. 18 INDEPENDENT AUDIT REPORT................................................................ 19 ENGAGEMENT
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audit Material misstatement: A misstatement in the financial statement can be considered material if knowledge of the misstatement would affect a decision of a reasonable user of the statement. Third party liability: A situation in which one party is held partly responsible for the unlawful actions of a third party. Independence in fact: Independence in fact exists when the auditor is actually able to maintain an unbiased attitude throughout the audit. The auditor’s ability to take an unbiased
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THE NONPROFIT SCANDAL OF THE YEAR: THE FIESTA BOWL Bill Jones EXECUTIVE SUMMARY – The overriding failure of the Fiesta Bowl’s Board of Directors (BoD) was its abrogation of its Duty of Care in managing the Nonprofit Organization (NPO). The Duty of Care requires directors of an NPO be reasonably informed about the organization’s activities, participate in making decisions, and do so in good faith with the care an ordinary prudent person would exercise in similar circumstances. This duty requires
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Chapter 9 Multiple-Choice Questions |1. |If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then| | |that information is, by definition of FASB Statement No. 2: | | |a. material.
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violation or compliance of the AICPA’s Code of Professional Conduct in this case study and analyze the key reasons why they were or were not in compliance. Provide support for the rationale. In the Cardillo Travel Systems, Inc. case there were two audit firms spoken of: Touche Ross and KMG Main Hurdman (KMG). According to the text, Touche Ross was engaged in auditing services at Cardillo in 1985. The engagement was
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Code of Professional Ethics and Conduct Code of Professional Ethics and Conduct The AICPA adopted a Code of Professional Ethics and Conduct made up of various rules to provide guidance to members on the performance of their professional responsibilities (Strayer, 2011). All of the rules set forth by the CPA are enforceable under the AICPA bylaws. These bylaws enforced by the Joint Ethics Enforcement Program which
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paperwork. The tedious meetings and note-taking that are required by corporate entities are not required by an LLC. There are no board meetings or quarterly meetings required. There are no quarterly or semi-annual reports that are necessary for the IRS. There is no double taxation. You do not have to pay taxes on your corporate profits, as well as on profits that pass through to your members. You only pay taxes once, and that is on those profits that are given to individual members Longevity of
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Solutions for Chapter 8 Tools to Gather Audit Evidence Review Questions: 8-1. The three main tools the auditor might use in gathering and evaluating audit evidence are: • Audit sampling • Generalized Audit Software • Analytical procedures 8-2. Non-sampling risk is the risk that the auditor makes an improper assessment of inherent and/or control risk or did not apply audit procedures carefully. It can be minimized through: (1) Good hiring, training and supervision
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Chapter I:1 An Introduction to Taxation Discussion Questions I:1-1 The Supreme Court held the income tax to be unconstitutional in 1895 because the income tax was considered to be a direct tax. At that time, the U.S. Constitution required that an income tax be apportioned among the states in proportion to their populations. This type of tax system would be extremely difficult to administer because different rates of tax would apply to individual taxpayers depending on their states of residence
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Tax Research and Bibliography University Instructor: Introduction This paper addresses three aspects of corporate tax research and its associated bibliographies to clarify the subject matter, thus providing credence to the work and its authors. Three subject have been explored; first examined was ‘equal opportunity and disabled workers’, next was the deductibility of tuition, and finally, the matters of ‘tax court and TEFRA’ were looked at and provided a nice grouping of
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