Premium Essay

Adms 4551

In:

Submitted By josuet86
Words 844
Pages 4
Name: Josue Tumialan Student ID: 213-851-407 Section: B

Individual Assignment

Beaumont Limited

A. Provide 2 causes of information risk relating to the financial statements of BL and explain how the conduct of an audit reduces each
Information risk is the likelihood of improperly record information which end up being provided to decision makers. In this case I was able to identify two possible causes of information risk at Beaumont Limited: i. Not adopting proper internal control and formal accounting policies to prepare financial statements. An audit will reduce this risk by evaluating the management assessment of internal controls, make sure they are presented in accordance with applicable accounting standards and whether the error is material or not

ii. Lack of task diversification, Kevin Bastian (BL’s shareholder) was in charge of 3 complex aspects of the business which are accounting, finance and administration which usually involve large amounts of data. An audit will detect any material error that might have occurred for handling too much information by one person

B. Describe a management responsibility relating to the financial statements of BL that has not been properly completed. Explain why management responsibility is important
Pierre Timmons, the new Chief Financial Officer, found out that appropriate internal control was not in place. In addition to this he found that BL have not adopted proper accounting policies in preparing their financial statements. Management is responsible for the proper preparation of financial statements using a proper reporting framework (GAAP) and corresponding accounting policies. Management is also responsible of maintaining adequate internal control. Good internal controls are essential for making financial statements fairly representative which represent the economic reality of a

Similar Documents

Premium Essay

Adms

...School of Administrative Studies Faculty of Liberal Arts and Professional Studies York University Fall 2013 Course Outline AP/ADMS 4552 3.0 Section A and B Information Systems Audit Term: Fall 2013 COURSE: AP/ADMS 4552 3.0 Sections A and B Information Systems Audit Schedule First day of class: Section A: Wednesday, September 11, 2013 11:30 AM – 2:30 PM, Location: HNE 030 Section B: Thursday, September 12, 2013 7:00 PM – 10:00 PM, Location: HNE 032 REQUIRED COURSE TEXT/READINGS: • Hall, James A., (2011), Information Technology Auditing, 3e, Mason: South-Western Cengage Learning (Referred to as “IT Audit Text” in the Readings List for each class) • Additional material as listed in the course outline. This includes articles referenced by links, readings from books that were required for prerequisite courses, cases and assignment details posted on our web site. • CICA Assurance Handbook, as available online from York University library, (referred to as “Handbook” in the Readings List for each class). Selected readings are from: [Note this book is available on reserve at the business library in the Schulich building if you do not have a copy.] • Arens, A., R. J. Elder, M. S. Beasley and I. B. Splettstoesser-Hogeterp. 2011. Auditing: The Art and Science of Assurance Engagements, Canadian 11th Edition, Pearson Prentice Hall: Toronto. (Referred to as “Audit Text” in the Readings List) References for the 12th Canadian...

Words: 3433 - Pages: 14

Free Essay

Two Year Plan

...MGMT  497  –  ITM  CORPORATION  TWO  YEAR  PLAN   IN  THE  MIDDLE   INCORPORATED   World  11  Team  1     Final  Corporate  Report   Laura  Angel   Chial  Jung   Gisela  Mino   Carlos  Nabor   Hien  Pham   Marlene  Sotelo     Dr.  Kwong   World  11  Team  1   Fall  2013           1   MGMT  497  –  ITM  CORPORATION  TWO  YEAR  PLAN   Table of Contents       SECTION  1    INTRODUCTION  .................................................................................................................  5   SECTION  2   CORPORATE  CHARTER  ......................................................................................................  6   SECTION  3   INDUSTRY  ANALYSIS  AND  OBJECTIVES  ..........................................................................  8            3.1   Industry  Analysis  ..........................................................................................................................  8            3.2   Weighting  Factors  .......................................................................................................................  14            3.3   Goals  and  Objectives  .....

Words: 41267 - Pages: 166

Free Essay

Oracle for Dummies

...™ Everything Easier! Making cle 11g Ora ® Learn to: • Set up and manage an Oracle database • Maintain and protect your data • Understand Oracle database architecture • Troubleshoot your database and keep it running smoothly Chris Zeis Chris Ruel Michael Wessler www.it-ebooks.info www.it-ebooks.info Oracle 11g ® FOR DUMmIES ‰ www.it-ebooks.info www.it-ebooks.info Oracle 11g ® FOR DUMmIES by Chris Zeis, Chris Ruel, and Michael Wessler ‰ www.it-ebooks.info Oracle® 11g For Dummies® Published by Wiley Publishing, Inc. 111 River Street Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online...

Words: 106399 - Pages: 426