...on this subject. This idea is supported by Mautz and Sharaf (1961), who created an outline of standards that auditors should work, to in order to achieve the highest level of professionalism. To be able to achieve this level of professionalism it can be seen that a conceptual framework must be in place, it was for this reason Mautz and Sharaf created eight postulates as a foundation for a framework. They created their postulates based on a ‘...careful study of the nature and activities of auditing...’,(Mautz and Sharaf, 1961, pg 41, ).It was this study which allowed them to create the postulates that are the underlying assumptions of modern audit theory and practice. Flint in 1988 developed this idea but rather than eight postulates he suggests seven very different basic postulates. The postulates Flint created are based upon the idea that audit has a much broader effect on society, this basis can be seen within the postulates. When we look at the first postulate Flint states, ‘... Auditing can be said to act as an element of social control within the process of corporate or public accountability...’ (Flint, 1971) This suggests that Flint felt that audit was not only affected by society but also that audit is actually one of the key controls that operate within society. Further mention of the effect audits create within society is seen in postulate five which discusses the method that is used to set standards within the audit industry. Flint states that ‘...The social objective...
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...Auditing Basics: How to Assess a Potential Client’s Reliability By Maire Loughran from Auditing For Dummies You have to judge a client’s accounting competence and integrity before accepting an auditing engagement. If the client lacks accounting skills and integrity, you should seriously consider not accepting the job. The process for sizing up a potential client can be involved. Just as you wouldn’t want to start a business with someone you don’t trust, you don’t want to accept an auditing engagement from a company whose management ethics seem a little shaky. If a client lacks integrity, your job becomes a whole lot more complicated. Here are some red flags to look for when evaluating a company’s integrity: * Turnover: High turnover — especially in key management or financial positions — can indicate business practice disagreements that may be ethical in nature. Asking management members how long they’ve been employed by the company and examining payroll reports are two ways to find data on employee turnover. * Reputation: Consider whether the potential client has a poor reputation in the community. Keep in mind that you’re known by the company you keep — it may be smart to walk away from such a client. * Lawsuits: Check out any lawsuits currently pending among the owners of the business. Talking to the parties of the lawsuits may lead you to vast amounts of insider info that will affect your decision. * Attitude: Ask yourself this: Do the client’s management...
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...CASE STUDY PA503 FUNDAMENTALS OF AUDITING Audit Firm Contact Number JABATAN PERDAGANGAN Programme Section CHAPTER 1 CHAPTER 2 Email Materiality and Audit Risk Corporate Governance PROBLEM SOLVING CLO2 | LD2/P3 Instruction: Please answer ALL questions. | Part 1 NEW CLIENT ACCEPTANCE DECISION Learning Objectives After completing and discussing this case, you should be able to: 1. Understand the types of information relevant to evaluating a prospective audit client 2. List some of the steps an auditor should take in deciding whether to accept a prospective client 3. Identify and evaluate factors important in the decision to accept or reject a prospective client 4. Understand the process of making and justifying a recommendation regarding client acceptance INTRODUCTION Your accounting firm is a medium-sized, accounting firm in Malaysia, formed in 2012, mainly provides auditing and tax services. But it has recently had success in building the information-systems-consulting side of the business. Recently, your group has been assigned for the first time to perform audit engagement procedures for a small and medium-sized company in Malaysia. One of team member has been a senior auditor for the past three years. Your first assignment is to assist an audit partner on a client acceptance decision. The partner explains to you that the prospective client, Unggul Holdings Berhad, is a medium-sized textile company. The partner recently met the...
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...Professor in Residence, KPMG (2007) Office: GSB.5.124E; Ph.: 475-8852; E-mail: mark.bradshaw@mccombs.utexas.edu Office hours: Tuesdays and Thursdays from 11:15 – 12:15 and by appointment. I generally prefer e-mail as a means of contact outside of class and office hours. Teaching Assistants Star Yuan, traditional M.P.A. student E-mail: star.y.yuan@gmail.com Ashley Ross, 5th year integrated M.P.A. student E-mail: ashley.ross@bba07.mccombs.utexas.edu Star and Ashley will assist with the grading of cases and exams. After graded cases are returned throughout the semester, they will schedule office hours to discuss such assignments. If you have grading or other questions concerning a case that has been returned, please make every effort to attend their scheduled office hours. All other questions and communications concerning course-related matters (including case and exam preparation and exam grading) should be directed to me. Internet Discussion Board and "Blackboard" We will use...
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...ACC 304 Research Project Dr. Fall Quarter 2015 Interview Transcript Justin: What is your name? Bridget: Bridget Skvarna. Justin: What is your position here at Cal Poly Pomona? Bridget: I am a Senior Accountant. Justin: So what does that entail? Bridget: I am involved in financial reporting to the State of California, to the Chancellor’s Office for the CSU system, and GAAP, I record investment income and reconciliation, I do special projects, and I do a lot of work to get the reporting accurate every month. Justin: What prompted you to be an accountant? Bridget: Well back in the 80s it was a process of elimination. I did not want to go into the medical field and I didn’t want to be an engineer. So that kind of took the sciences of the table. And I didn’t want to be an English teacher. So that left me with business. When I was in college we had four business majors. It was known accounting was the hardest, then finance, then marketing, and then management. My dad suggested to me, “Why don’t you go with accounting? Start high and if you need to drop down then drop down, but you will always be able to get a job with accounting.” And I like numbers and I’m good with numbers. Justin: Would you say your dad is a source of inspiration? Bridget: No, it was definitely not an inspired decision. It was a very logical and practical decision. Justin: That makes sense for an accountant, I’m not surprised. Have you been satisfied...
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...The Marketing Audit Comes Of Age Philip Kotler, William Gregor and William Rogers Comparing the marketing strategies and tactics of business units today versus ten years ago, the most striking impression is one of marketing strategy obsolescence. Ten years ago US, automobile companies were gearing up for their second postwar race to produce the largest car with the highest horsepower. Today companies are selling increasing numbers of small and medium-size cars and fuel economy is a major selling point. Ten years ago computer companies were introducing ever-more powerful hardware for more sophisticated uses. Today they emphasize mini and microcomputers and software. It is not even necessary to take a ten-year-period to show the rapid obsolescence of marketing strategies. The growth economy of 1950-1970 has been superseded by a volatile economy which produces new strategic surprises almost monthly. Competitors launch new products, customers switch their business, distributors lose their effectiveness, advertising costs skyrocket, government regulations are announced, and consumer groups attack. These changes represent both opportunities and problems and may demand periodic reorientations of the company’s marketing operations. Many companies feel that their marketing operations need regular reviews and overhauls but do not know how to proceed. Some companies simply make many small changes that are economically and politically feasible, but fail to get to the heart of the matter...
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...Fraud Schemes and Fraud Investigation Acc 571 Instructor: Dr. Ole Ruankaew Diane Phillips November 22, 2015 Fraud Schemes and Fraud Investigations The problem that organization faces today, are employee fraud. Many organizations feel that long term success of any company comes from the quality of their employees and workers loyalty. While during my research, I discovery that Association of Certified Fraud Examiners, Inc. has shown that organization have lost five percent of their annual revenue each year because of employee fraud. Every organization needs to have a plan in places for fraud detention. In preventing fraud in the work place, a good strategy for any organization is to implement internal control. These are plans; programs and procedures put in place to safe guard the company assets, and ensure the integrity of its accounting records. As prevention fraud is much easier than recovering losses after a fraud has been committed. This study will focus on the case of Stanford Financial Group Company fraud in which Robert Allen Stanford, chairman of Stanford International Bank (SIB), was involved in a Ponzi scheme. Stanford was convicted of orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion form SIB to finance his personal businesses. The Stanford Financial Group claimed to have pulled in retail, wealthy and commercial investors from 136 countries on six continents. Lopez and Kuhrt was aware of what Stanford ...
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...Accountant, Auditor and Forensic Accountant Jerry Brockman Davenport University Abstract The overall purpose of this Professional Language and Culture report is to detail the accountant’s communication style and culture, as well as, their specialized language. The report begins with a brief discussion of the origin of accounting, as well as, the distinction between bookkeeping and accounting. Additionally, an examination of the Financial Accounting Standards Board (FASB) provides insight into the culture, ethical values and professional standards of accountants. Other areas of discussion in this report are the voice and tone used in various forms of communication by the accountant. Also, included in this report is an excerpt from an interview of an accounting professional as well as an example from a journal article. These artifacts will provide the reader with examples of the mind-set and communication style of the accountant. Finally, this report concludes with an examination of the auditor’s as well as the forensic accountant’s culture and communication style. Table of Contents Contents Abstract 2 Table of Contents 3 Accounting has been around for centuries.. 4 Professional Standards and Ethics 4 Culture of Professional Standards 5 Language of Business 6 Voice and Tone 6 Specialized Areas of Accounting 7 Communication 8 Forensic Accounting 8 Communication 9 Conclusion 9 References 11 Appendix A 13 Appendix B 16 The Language and Culture...
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...Content | 1 | KPMG | 40 min | 2 essaysTopic: important characteristics of a co-worker; different culture affect judgment; first impression on judging people; if receiving voucher from client causes unethical behavior. | 2 | PwC | 30 min | 1 essayTopic: pros and cons of mobile phone as a mean of communication; of online shopping. | 3 | EY | 120 min | 6 parts1) Accounting (focus on VAS-related questions)2) Auditing3) Tax4) Logic Test (IQ; find next number; missing word; A to B as C to D; there are 6 eggs in a basket, 6 persons, each takes one egg, how there still be an egg in a basket (answer: the last one takes the basket with the egg inside))5) Social knowledge (price of 92 gasoline, name of a student starting Hong Kong civil disobedience – Joshua Wong, EOY marketing – EOY stands for what, merge of bank, effective time when university entrance exam merges with high school graduation)6) 1 essayTopic: share your thoughts about air/water pollution; reform in Vietnam, what has done best. | 4 | Deloitte | 90 min | 5 parts1) Accounting (ACCA - F2 & F3)2) Auditing (audit opinion, general principles)3) Banking and Finance (interest rate, share price with growth rate, BOP, financial lease, operating lease, largest bank in terms of total assets and...
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...Copyright CGG 2005 Printed and published by the Director General & Executive Director, Centre for Good Governance Dr MCR HRD IAP Campus, Road No. 25, Jubilee Hills, Hyderabad 500 033. 2 |||Social Audit: A Toolkit| |||||| |||||| |||||| ||Contents|||| |Preface|||| |List of abbreviations|||| SECTION – I. SOCIAL AUDIT EXPLAINED|7|| 1.|Introduction to Social Audit|9| 2.|Accountability Mechanisms: Cases from India|10|| 3.|Social Audit Vs Other Audits|13|| 4.|History of Social Audit|14|| 5.|Stakeholders and Social Audit|15|| 6.|Principles of Social Audit|17|| 7.|Uses and Functions of Social Audit|18|| 8.|Benefits of Social Auditing for Government Departments|19|| 9.|The Design and Methodology|20|| 10.|Social Audit for Government of Andhra Pradesh|21|| 11.|Good Governance and Social Audit|22|| 12.|Social Auditing and Performance Evaluation|24|| 13.|How does Social Audit work?|25|| 14.|Who can use Social Audit?|26|| 15.|Social Audit and Social Capital|27|| 16.|Designing Social Audit|28|| 17.|Designing the Data Collection|29|| 18.|A checklist for designing an Audit|33|| 19.|Group Exercise|33|| 20.|Traditional Social Indicators|34|| 21.|The Follow-up action plan for Social Audit|36|| SECTION – II. THE TOOLKIT|37|| 22.|Social Audit Toolkit|38|| 23.|Where do we start?|38|| 24.|Six key steps for Social Audit|39|| 25.|How core values are linked to...
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...Journal of Forensic & Investigative Accounting Vol. 4, Issue 2, 2012 The Obvious Fraud: A Short, Problem-Based Case Study to Highlight Inappropriate Fraud Examination Techniques David O’Bryan Jeffrey J. Quirin* INTRODUCTION Assume you are an internal auditor for a large, multinational, manufacturing organization with a division in Mexico. One of your responsibilities is to investigate allegations made on the company’s fraud hotline. When you arrive at work one morning you learn an anonymous tip was left on the hotline that alleges fraud involving the division manager. “Pat’s significant other is a fraudulent vendor,” was the anonymous tip left on your company’s fraud hotline. Pat is a division manager at your company. “Wow. I can’t believe this guy is so blatant,” you’re thinking as you review some accounts payable invoices while following up on this anonymous tip. The invoice that caught your attention is shown in Table 1. A quick search of the AP file reveals a total of three invoices like the one in Table 1, all for identical amounts but on different dates. The division manager, Pat, has the authority to approve payment of invoices for less than $10,000. It is obvious to you that the manager has a created a shell company. You happen to know that Pat’s significant other is named Kim, hence the name Kimco Marketing. There is no documentation to support these transactions other than the invoices, all of which are purportedly for marketing services. * The authors are, respectively...
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...Running head: CASE STUDY OF CLEANEDISON 1 Case Study of CleanEdison Green Technology Training and Certification Courses Kaplan University CASE STUDY OF CLEANEDISON 2 Abstract This paper is a case study that was conducted with Avi Yashchin, owner and founder of CleanEdison LLC, where he gave details on his business and accounting department. During the interview he spoke about the clean technology training industry, products, services, markets, customer base, and competitors that he has had since opening the business in 2009. After this detailed introduction he answered specific questions from Chapter 1 BTN 1-8 and Chapter 3 BTN 3-8 Beyond the Numbers sections in the accounting textbook Financial Accounting Information for Decisions 6th Edition (Wild, 2012). This paper is a very good introduction to the green or clean technology training field and gives some insight on how someone that was very passionate about the field started and ran a profitable company in this space for 5 years. CASE STUDY OF CLEANEDISON 3 Case Study of CleanEdison Green Technology Training and Certification Courses There are many ways that our modern day society is more conscious of the environment and does their part to reduce the wasting of our resources and looks for other ways of creating alternative energy. For Avi Yashchin, his contribution in trying to reduce the...
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...Ijarah in car financing as their products. The findings show that concepts of BBA and Ijarah practise in Islamic Institutions in Malaysia are differ from the actual Islamic teachings. The study also reveals that Islamic banks are restricted to the Malaysian requirements in providing their products. Page no Abstract 2 Introduction 4 Literature review 5 Methodology 7 Findings 7 Conclusion 13 1.0 INTRODUCTION Financial Accounting Organization for Islamic Banks and Financial Institutions is known as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). It was established in 1991 (AAOIFI, 2007, p.8). AAOIFI standards are drawn from Islamic teaching. The standards free from three important concepts that are used in conventional institutions which are interest, ambiguity and gambling. These standards help investors or depositors especially among Muslims to invest or deposit their funds in shariah compliance institutions. AAOIFI standards are the best in terms of Islamic shariah principles. Islamic finance is becoming more popular even with non-Muslim investors. Today, Islamic banks are operating in more than 50 countries for example Bahrain, France,...
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...INTERNAL AUDIT PRINCIPLES The main and ancillary objectives of an internal audit The main objective of internal auditing is to assist members of executive and senior management in the effective discharge of their duties and responsibilities with regard to risk management, control and governance processes. To this end, the internal auditor furnishes them with analyses, appraisals, recommendations, counsel and information concerning the activities reviewed. The discovery of errors and fraud is the ancillary objective of internal auditing. The internal auditor as an adviser to members of the organization As an adviser, the internal auditor examines and reviews the activities of the organization in order to evaluate them with a view to furnishing members of the organization with advice, information and recommendations that will enable them to discharge their duties effectively. As an adviser, the internal auditor merely offers advice, gives information or makes recommendations. The ultimate decision whether or not to accept this advice or information or to implement these recommendations, therefore always rests with executive management. The internal audit activity should never possess the organizational power to force top executive management to accept the audit results. Management may decide to: 1. accept the auditor’s recommendations, in which case the internal auditor must ascertain that the corrective action taken is achieving the desired results, or ...
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...A GUIDE TO FORENSIC ACCOUNTING INVESTIGATION THOMAS W. GOLDEN, STEVEN L. SKALAK, AND MONA M. CLAYTON JOHN WILEY & SONS, INC. A GUIDE TO FORENSIC ACCOUNTING INVESTIGATION THOMAS W. GOLDEN, STEVEN L. SKALAK, AND MONA M. CLAYTON JOHN WILEY & SONS, INC. This book is printed on acid-free paper. Copyright © 2006 by PricewaterhouseCoopers LLP. PricewaterhouseCoopers refers to the individual member firms of the worldwide PricewaterhouseCoopers organization. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. 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 Section 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, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. 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 at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this...
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