attitude of “professional scepticism” is necessary if a CGA is to perform an audit engagement with due care. Which of the following best describes how a CGA may display an attitude of “professional scepticism” when performing an audit engagement? 1) 2) 3) 4) By assuming that management is dishonest in the absence of evidence to the contrary By not allowing clients’ staff to assist in the performance of an audit By rejecting all management assertions in the absence of supporting evidence
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STUDY LIST & ESSAYS FOR THE FINAL Fall 2013 AICPA and PCAOB standards on computers can be used for the whole exam, keep time limits in mind Numbers in red are incomplete or need additional information. Some in red may not need additional information, but if additional information can be provided that will help with essays add it. 1. Code of Professional Conduct as it relates to the cases that we discussed -Rule 101 Independence-A member in public practice shall be independent in
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Review of all changes to master data Access controls Encryption Backup and disaster recovery procedures Sound hiring procedures, including verification of job applicants’ credentials, skills, references, and employment history Criminal background investigation checks of all applicants for finance-related positions Thorough documentation of hiring, performance evaluation, and dismissal procedures Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 15-7 | * Slide 8 |
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Code of Ethics Fundamental Principles Integrity Objectivity Professional competence and due care Confidentiality Professional behaviour * * APES 110, s290 provides specific guidance on independence requirements for audit and review engagements, while s291 provides similar requirements for other assurance engagements (don’t quote s291 or marks deducted in first assignment) Corporate Governance System by which companies are directed and managed covers conduct of board of directors
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Services (IRS) of aggregate method to determine, assess, and collect its share of Federal Insurance Contribution Act (FICA) taxes on tips received by its employees. The United States District Court for the Northern District of California, 21 F.Supp.2d 1097, granted summary judgment for restaurant, and IRS appealed. The Court of Appeals for the Ninth Circuit, 242 F.3d 844, affirmed, and certiorari was granted. The Supreme Court, Justice Breyer, held that: (1) the law authorized the IRS to base its
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Compliance Distinguish tax planning from tax compliance. Solution: Tax compliance involves the gathering of relevant information, evaluating and classifying that information, filing tax returns, and representing clients at Internal Revenue Service audits. Tax planning is the process of evaluating the tax consequences associated with a transaction and making recommendations to achieve the desired objective at minimal tax cost. It generally involves extensive tax research. 2. Tax vs. Nontax Factors
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accounts/records, by a qualified accountant, and procedures of a firm organization. - this is essential in order to gain a fair perspective on the co’s financial statement - potential investors and creditors can look at financial statement to decide whether to invest in a business o not - important as it also protects the public from scams and corrupt business procedures d) Financial Audits,Compliance Audits, Information Technology Audits, Departmental Audits e) – duty to carry out
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or tax research are necessary in order to determine the proper recording, classification, and disclosure of economic events; to determine compliance with authoritative pronouncements; or to determine the preferability of alternative accounting procedures. 4. The objective of accounting, auditing, or tax research is a systematic investigation of an issue or problem utilizing the researcher’s professional judgment to arrive at appropriate and timely conclusions regarding the issues at hand.
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| | |Describe and define the management assertions embodied in financial |9, 10, 11 |52, 54 | |statements, and why auditors use them as a focal point of the audit. | | | | | | | |Explain some characteristics of “professional
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in an audit client. Self review threat It occurs when the audit from a member or audit team put itself in a position of reviewing the subject that previously the member is responsible Familiarity threat It occurs when auditor has a close relationship with the client Advocacy threat It occurs when the audit from a member of the audit team promotes/support or may be perceived to promote an audit client’s position or opinion. Intimidation threat It occurs when a member of the audit team may
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