invoices. EAI has been audited by a sole practitioner over the past ten years. Due to the large growth experienced by EAI, the President of EAI is considering switching to Check and Balances, professional accountants for the upcoming year. You are an auditing student
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Legality and Ethicality of Corporate Governance United Thermostatic Controls is a publically traded corporation and is in the middle of an internal audit going on. The company makes and sells the thermostats that are in refrigerators and furnaces in residential and commercial properties. Frank Campbell (the director of the Southern sales division) is worried about their goals not being met due reasons concerning the big fluctuations in the market, the end of the year approaching, the thermostat
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When considering whether or not to accept a new audit client, the successor audit should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining the acceptance of the engagement. Matters subject to inquiry include: information that might bear on the integrity of management, disagreements with management as to accounting procedures, or other similar significant matters, and communications to audit committees regarding
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was signed by the Chief Financial Officer. This helps ensure that the filings are correct, comply with SEC reporting requirements, and are properly communicate to stakeholders in the management of Barnes & Noble, Inc. The organization uses internal auditing committee called the “Audit Committee “. The Audit Committee reviews the company’s financial reporting process on behalf of the Board of Directors. Barnes & Noble also uses and independent auditor that is responsible for expressing an opinion of
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1 1 Learning Objectives 1. What is auditing? Distinguish between auditing and accounting. Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA? Identify the primary types of auditors. 2 What is auditing? Evaluating 3 Nature of Auditing Auditing is the accumulation and evaluation of evidence
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staff member is able to maintain an independent viewpoint while performing the engagement. Once the auditor decides to accept the engagement, an engagement letter is prepared that details the timing, responsibility and cost of the audit. Planning Auditing standards require that an auditor prepare adequate planning for an engagement. The amount of audit planning needed is in direct relation to the size and complexity of the organization. Audit planning involves obtaining an understanding of the organization’s
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Case 8.3: Burlingham Bees: Using Analytical Procedures as Substantive Tests Required: 1. According to professional standards (AU 329): The auditor's reliance on substantive tests to achieve an audit objective related to a particular assertion may be derived from tests of details, from analytical procedures, or from a combination of both. The decision about which procedure or procedures to use to achieve a particular audit objective is based on the auditor's judgment on the expected effectiveness
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Biltrite bicycles inc (CASE STUDY) By Amardeep Bains Course No. ACC 650M (Auditing Principles) Submitted: 05 Feb, 2012 Module I: Assessment of Inherent Risk Requirement 1. Biltrite bicycles Inc. was incorporated in 1970 and since then it has successfully added many bikes to its production line. The company has experienced steady growth in sales and profitability
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is an overall assessment of the financial fraud that occurred at Worldcom. This paper will show that if an operational audit had been conducted how it could have uncovered the fraud at an earlier time. | Initial Survey and Engagement Development In the introduction survey there are several topics that should have been discussed in the initial survey and engagement development for an audit of Worldcom. When reading the Worldcom case the very first thing that I noticed was there was no written
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interoffice memorandum subject: ethics assigment- New systems inc date: [ 3/18/2012 ] A number of business ethical conflicts develop due to divergences between different stakeholders’ interests such as; company owners, employees, customers or/and surrounding community. One of the major stakeholders New Systems Inc is experiencing an ethics situation. Alexandra Lopez a certified internal auditor for New Systems Inc has been assigned to the Royal Division for the past two years. Alexandra
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