Auditing Process

  • Auditing

    here are 10 generally accepted auditing standards and are separated into three categories. 1. General Standards a. Auditor must have adequate training, experience, education and proficiency to perform the audit. b. Auditor must have the attitude of independence c. Auditor must exercise due professional care – with care and skill 2. Standards of Fieldwork d. Auditor must plan properly and supervise employees e. Auditor must understand entity and its environment…including

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  • Auditing

    March 2012 This Auditing and Assurance Bulletin has been prepared by Auditing and Assurance staff. It has not been issued under the authority of the Auditing and Assurance Standards Board (AASB). This Auditing and Assurance Bulletin is intended to help raise practitioners’ awareness in a timely manner of significant new or emerging issues or other noteworthy circumstances related to engagements addressed by the AASB pronouncements. It is also meant to direct practitioners to relevant requirements

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  • Auditing

    Auditing a publicly traded company Team B Miriam Burns, Matt Gourlie, Paula Morris, Kendra Upchurch Christine Errico ACC/541 MEMO TO: Sally Field (Senior Accountant) FROM: Team B SUBJECT: Audit of Nike DATE: October 12, 2012 Ms. Field our team is preparing to audit Nike for their annual audit. We will make sure the company is following generally accepted principles (GAAP). In the staff meeting discussing the upcoming audit of Nike, you asked us to make sure the company

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  • Auditing

    factors important in the decision to accept or reject a prospective client * Understand the process of making and justifying a recommendation regarding client acceptance The accounting firm of Barnes and Fischer, LLP, is a medium-sized, national US-based CPA firm. The partnership, formed in 1954, now has more than 6,000 professionals on the payroll. The firm mainly provides auditing and tax services, but it has recently had success in building the information-systems-consulting side

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  • Auditing

    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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  • It on Auditing

    ON “THE IMPACT OF EMERGING INFORMATION TECHNOLOGY ON AUDITING” In our modern world today, everything is possible... Everything is faster. But based on this fact, do we really know the influence of evolving “Information Technology” on our society specifically in the dynamics of businesses nowadays? To respond with this, IT has affected many sectors or aspects especially auditing. Audit is an evaluation of a person, organization, system, process, enterprise, project or product to enable the auditor

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  • Auditing

    IT Audit Seminar organized by National Audit Office, China 1 to 4 September 2004 Paper on “Formulation of IT Auditing Standards” By -- Ms.Puja S Mandol and Ms. Monika Verma Supreme Audit Institution of India Introduction The use of computers and computer based information systems have pervaded deep and wide in every modern day organization. An organization must exercise control over these computer based information systems because the cost of errors and irregularities that may

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  • Auditing

    Auditor’s Responsibility for Assessing Going Concern In auditing, going concern is identified as an entity’s capability to continue operating as a business entity. It is the auditor’s responsibility to evaluate the company’s financial statements to assess whether or not the going concern assumption is appropriate. An entity is obligated to include a disclosure in the footnotes of the financial statement stating if there is substantial doubt of the company to continue as a going concern.

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  • Auditing

    Auditing Cases An Interactive Learning Approach FIFTH M F S D E D ITIO N S. B A. B M. G F. P 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 Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager:

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  • Auditing

    on the Association’s certification as Certified Fraud Examiners (CFE). • The Institute of Internal Auditors (www.theiia.org) website contains detailed information on internal auditing. • The International Federation of Accountants (www.ifac.org) website provides detailed information on international accounting and auditing standards. • The SEC’s Edgar Web site (www.sec.gov) contains all filings by public companies with the SEC. It also contains information on other activities by the SEC. • The

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  • Auditing

    sufficient to protect against fraud and waste. Moreover auditors are expected to evaluate some aspects of a project, business, or individual performances. Also auditors are reliable to determine the level of efficiency presented in the production process of a business, also recovering the efficient use of labour and other resources associated with the business, and the reality of the financial records of the business. Looking ahead they are also involved in evaluating a projects or aspects of company’s

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  • Auditing

    We believe there are a number of worrying features of the audit market. At a very fundamental level, we are concerned about auditor independence and professional scepticism. Potential conflicts of interest have always been present in the system of auditing, so the challenge is how these are managed. We believe the current system is not delivering, as evidenced by: The failure of auditors to provide adequate warnings prior to the collapse of a number of banks and insurers in the financial crisis. In

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  • Auditing

    disclosures Expression of opinion on financial statements *Test* Table 5.1 Definitions And broad broad stuff Can accept a gift from a client as long as its no more than “token” or the amount the firm gives you You can indirectly own stock in an auditing client if its immaterial to your net worth You cannot be paid in stock Because we don’t see the audit as one event, its not a series of events even though that looks like it. Because once you have the client you usually have it for a good amount

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  • Auditing

    reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing

    Department of Law, Economics, Accountancy and Risk AUDITOR INDEPENDENCE Introduction The concept of independence is strongly associated with professionally standard auditing (Olagunju, 2011, pp.85). In other to maintain the utmost standard for the accounting profession, independence is seen as being free from control or pressure and not allowing situations which would tend to weaken objectivity or create personal preconceived notions (Porter and Simon et al., 1996). Audit improves the trustworthiness

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  • Auditing

    generally accepted auditing standards (GAAS). Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards. Auditing Standards 2. The general, field work, and reporting standards (the 10 standards) approved and adopted by the membership of the AICPA, as amended by the AICPA Auditing Standards Board

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  • Auditing

    information (including Privileged and Critical Energy Infrastructure Information) – Has Been Removed TABLE OF CONTENTS Executive Summary ........................................................................................................ 3 Audit Process .................................................................................................................. 3 Objectives .....................................................................................................................

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  • Auditing

    The Likeside Company: Auditing Cases AUDITING PROCEDURES AND AUDITING DOCUMENTATION: TESTING THE INVENTORY PURCHASING SYSTEM Art Heyman is employed as a staff auditor with the independent accounting firm of Abernethy and Chapman. For the first two weeks of December 2012, Heyman is asined to the Lakeside Company examination. During this period, he is to perform a number of testing procedures designed by Carole Mitchell, in-charge auditor on the engagement. Heyman recalled that several parts

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  • It Auditing

    Technology Auditing XX Jul 13 Information Technology Auditing In this paper we will be discussing the process of auditing in the information technology environment. Auditing within information technology can go several different was and focus on different aspect of information technology. The auditing process can be as simple as the review of software and extend all the way up to intricate aspects of a Government established information systems security features. The process of auditing

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  • Auditing

    themselves as financially sound. Others have committed fraud to achieve the same objective. With this type of corporate behavior there is an increasing need for better auditing and more reliable audited financial statements. The purpose of this paper is to read and study a comprehensive case as presented in the textbook Contemporary Auditing: Real Issues and Cases and answer the questions as listed at the end of the case study. I decided to select case 1.10 United States Surgical Corporation. Comprehensive

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  • Auditing

    Risk and Auditing Regis University Auditing Principles June 28, 2014 Business Risk and Auditing In the eyes of the average person auditing is a very black and white business as is all aspects of accounting. However, neither of these are as cut-and-dry as people would like to think. Auditors, as many people assume, are not always looking for fraud. Their main purpose in auditing is to ensure the financial statements comply with Generally Accepted Accounting Principles (GAAP). Auditing is as

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  • Auditing

    FIFTEENTH EDITION AUDITING AND ASSURANCE SERVICES AN INTEGRATED APPROACH Includes coverage of international standards and global auditing issues, in addition to coverage of the AICPA Clarity Project, PCAOB Auditing Standards, the Sarbanes–Oxley Act, and Section 404 audits. A LV I N A . A R E N S Former PricewaterhouseCoopers Emeritus Professor Michigan State University R ANDAL J. ELDER Syracuse University Professor and Senior Associate Dean MARK S. BEASLEY North Carolina State University

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  • Auditing

    Internal auditors, although hired by the audit committee, might be too close for comfort with the management of the company. This may corrupt the independence factor of the external audit. * Legal services: Legal services include representing an auditing client in a tax court. Representing an external audit client in a legal matter might create a closer relationship with the client which could threaten the external auditor’s objectivity and independence from the client. K1.1-5 * Establish

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  • Auditing

    authority, to set standards. That power still belongs to the SEC, and they can be denied if the SEC does not agree with them. After the SEC approves the standard they are placed into effect, making them valid so to speak. They are then a legal auditing standard that must be followed by all publicly traded companies. For the private sector, it began with the Committee on Accounting Procedure (CAP), which was a committee of the American Institute of Accountants (AIA); later renamed the American

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  • Auditing

    consulting services is to generate a recommendation to management * Assurance services engagement is to improve the quality of information. Nature of auditing Auditing is 2.the accumulation and evaluation of evidence about information to determine and 4.report on the degree of correspondence between the 1.information and established criteria. Auditing should be performed by 3.a competent, independent person. (pg13) Types of audits 1. Financial statement audit * To determine whether the

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  • Auditing

    Running head: AUDITING Auditing Joey Willoughby OMM622 Financial Decision Making Instructor: Wayne Hollman August 11, 2014 Auditing This inquiry will exemplify what the staff should anticipate auditors to do

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  • Auditing

    AUDITING: A JOURNAL OF PRACTICE & THEORY Vol. 24, No. 1 May 2005 pp. 21ñ35 Recent Changes in the Association between Bankruptcies and Prior Audit Opinions Marshall A. Geiger, K. Raghunandan, and Dasaratha V. Rama SUMMARY: The intense legislative and media scrutiny after a series of high-profile corporate failures, coupled with the paradigm shift in the regulation of the auditing profession brought forth by the Sarbanes-Oxley Act, suggests that auditorsí decisions would be more conservative in

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  • Auditing

    exist. Weaknesses are not subject to test of controls auditing because no reliance is placed on a weakness. Strengths must be audited because the review phase only describes apparent strengths that may not actually exist. 3-4. The evaluation after the review phase was to determine which controls appeared adequate as a basis for justifying a low control risk assessment. The final assessment after test of controls auditing is to determine if the controls are actually operating as well

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  • Auditing

    Auditing Auditing is considered an efficient and self-governing inspection of the performances, operations, data, statements and records of a company for its stated determination. As with any audit the auditor is required to recognize the different proposals before his or her examination, the collection of evidence, and the evaluation of his or her findings. Auditors can be either internal or external auditors of financial statements. An external auditor is considered as an independent auditor

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  • Auditing

    satisfied with less than persuasive evidence in the audit process because of the belief that management is honest. FALSE 46. Professional skepticism involves such things as questioning and corroborating management responses to inquiries and determining the authenticity of documents. TRUE 47. The objective of financial reporting is to provide useful information to interested users. TRUE 48. Corporate governance is a process by which the owners, but not the creditors, exert control

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  • Auditing

    (Mitchell 2013). During the period, another non-executive member of the board, Ian MacDonald also resigns (Elders 2013a, p. 8). Discussion: Departure of key executives from Elders occurs at a pivotal period ‘in the midst of a complicated sales process aimed at reducing the group’s debt’ (Sprague 2013a). Assessment of the impact of changes to key personnel should be incorporated into audit planning procedures due to risk of internal control weaknesses (ASA 315, Appendix 1) and non-compliance with

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  • Auditing

    appointment, re-appointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor; • to review and monitor the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements; • to develop and implement policy on the engagement of the external auditor to supply non-audit services, taking into account relevant ethical guidance regarding the

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  • Auditing

    In the process of accountancy reforming and internationalizing, our country refers to the accounting standards in the USA to a large degree. However the audit failure always happens in America accounting firms. In recent years, a series of financial embezzling cases have taken place in the United States. The quantities and influence wouldn’t be anticipated. Audit failure means that CPA provides error audit opinion for unfaithful statements because he or she doesn’t confirm to audit standard

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  • Auditing

    AUDIT CRUNCH: REFORMING AUDITING 3 Fundamental Flaws in Current Audit Practice 1st point From this journal, it mainly focuses on the debating of three issues which are deeply embedded in the current auditing practices. Firstly, auditing model is one of the fundamental issues that exist in the auditing practices. It makes auditors’ financially dependent upon companies and persuades them to prioritize their own economic interest at the expense of other parties which may have an interest in audits

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  • Auditing

    ISA ISA 500 March 2009 International Standard on Auditing Audit Evidence 500 INTERNATIONAL STANDARD ON AUDITING 500 Audit Evidence Explanatory Foreword The Council of the Malaysian Institute of Accountants has approved this standard in March 2009 for publication. This standard should be read in conjunction with the Preface to Malaysian Approved Standards on Auditing; Preface to International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services; Glossary

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  • Auditing

    reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing

    of Economics and Management Sciences International Islamic University Malaysia PO Box, 10, 50728, Kuala Lumpur, Malaysia E-mail: maslina@iiu.edu.my Abstract Independence is the primary justification of the existence, and thus the hallmark of the auditing profession. It is recognized as the primary attribute to be maintained by auditors in all circumstances. This study attempts to explore the determinants of auditor independence as perceived by Malaysian accountants using a self-administered mail

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  • Auditing

    OVERVIEW OF AUDITING I. Review Questions 1. One definition of auditing is that it is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. The Philippine Standards on Auditing (PSA) 120 “Framework of Philippine Standards on Auditing” states the

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  • Auditing

    professional service based on up-to-date developments in auditing practice and relevant legislation. f) Technical Standards: Audit should be performed by following certain standards, international or national. International Standards on Auditing (ISAs) The auditor should follow basic principles and essential procedures together with related guidance as contained in ISAs. International Standards on Auditing (ISAs) are issued by the International Auditing Practices Committee (IAPC). The IAPC is a standing

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  • Auditing

    AUDITING A RISK-BASED APPROACH TO CONDUCTING A QUALITY AUDIT 9th Edition Karla M. Johnstone | Audrey A. Gramling | Larry E. Rittenberg CHAPTER 5 PROFESSIONAL AUDITING STANDARDS AND THE AUDIT OPINION FORMULATION PROCESS Copyright © 2014 South-Western/Cengage Learning LEARNING OBJECTIVES 1. 2. 3. 4. Identify and compare the various auditing standards that provide guidance on the audit opinion formulation process List and discuss the foundational principles underlying

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  • Auditing

    internal control over financial reporting. 10-7 PCAOB Auditing Standard 5 requires that the auditor issue a report on the effectiveness of internal control over financial reporting. To express an opinion on internal controls, the auditor obtains an understanding of and performs tests of controls related to all significant account balances, classes of transactions, and disclosures and related assertions in the financial statements. PCAOB Auditing Standard 5 requires the auditor’s independent assessment

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  • Auditing

    created the need for a specialist in various business controls: the internal auditor. We can understand better the nature of internal auditing today if we know something about the changing conditions in the past and the different needs these changes created. What is the earliest form of internal auditing and how did it come into existence? How has internal auditing responded to changing needs? As the operations of an organisation become more voluminous and complex, it is no longer practicable

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  • Auditing

       |   Productivity statistics | Assurance services     |   Internal audit strategic review | Assurance services     |   Financial statements submitted to a bank loan officer | Audit services     | audit engagement: (pg 3) The systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interestedattestation

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  • Auditing

    possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing

    Assignment 2 AU2 Advanced External Auditing Question 2 a) Three specific business strategies that explain eBay’s decision to offer good for sale at fixed prices: 1. Expand into New Markets: With the shrinking market of auction bidders on eBay and a growing market of fixed price buyers, customers may not prefer to go in the direction of purchasing goods in an online auction. Since, in an online auction the customer has to wait till the end of the auction to see which buyer

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  • Auditing

    are being utilised by the organisation (Www4.semo.edu 2016). The next step involves calculating the amount of electricity consumed and finding out ways to optimise the usage after closely evaluating the results obtained from calculation. Therefore, auditing energy consumption will involve two important aspects as follows: - Observing the energy consumption, and - Evaluating the demand and supply to find out consumption In essence, it can be said that two types of audit procedures can be used for

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  • Auditing

    AUDITING THEORY TESTBANKS / REVIEWERS 1. When an auditor believes that an understanding with the client has not been established, he or she should ordinarily a. Perform the audit with increase professional skepticism. b. Decline to accept or perform the audit. c. Assess control risk at the maximum level and perform a primarily substantive audit. d. Modify the scope of the audit to reflect an increased risk of material misstatement due to fraud. 2. An auditor should design the written

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  • Auditing

    AUDITING DEFINITION Auditing can be defined as an independent examination of the books of accounts and vouchers of a business with a view of forming an opinion as to whether these have been kept properly according to the Companies Act and as to whether the statement drawn there from portrays a true and fair view of the company’s state of affairs at a given date. The above definition can be broken down as follows: i. Independent examination: this is conducted by a qualified accountant qualified

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  • Auditing

    board is responsible for establishing auditing standards for public companies, it is appointed and overseen by the SEC. The PCAOB provides oversight for auditors of public companies, establishes auditing and quality control standards for public company audits, and performs inspections of the quality controls at audit firms performing those audits. AICPA - Auditing standards. The Auditing Standards Board (ASB) is responsible for issuing pronouncements on auditing matters for all entities other than

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  • Auditing Process

    Complete overview of an Audit Executive summary A financial audit refers to the verification of the financial statements of a company by an audit firm in order to express a professional opinion regarding their credibility. This process begins when a client approaches the auditor if deemed reputable the auditor accepts he begins by planning how to carry out the audit. This is done by assessing several factors such as risk, materiality etc. and then obtaining feedback in order to draw up the audit

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