...durable assets and currencies Sharikah al Mufawadah Investment Auctioning Output sharing DP with Management DP without Management Profit sharing Musharakah-based DP Mudharabah-based DP Sharikah al Amwal Sharikah al Abdan Sharikah al Wujuh Profit Sharing Revenue sharing Durable Assets Participation Musaqa Muzara‘a Output (Revenue) Sharing Involuntary: e.g., due to inheritance Voluntary: e.g., jointly purchasing a building for renting Sharikah al milk (Partnership based on joint Ownership) Temporary or Ongoing Musharakah Temporary or Ongoing Mudharabah Sharing Principle Fees deferred Ijara: Rents deferred Financial Murabahah Installment sale Object deferred Sale (ODS) Pre-paid istisna‘ Fees paid in advance Rents paid in advance Pure Salam SHARIKAT: PARTNERSHIPS Qard/Service Charge Heeba (Donations) 'Ariyah (qard of assets) Qard: Interest Free Loans TABARU‘AT: GRANTS Hemish Jedheya-Sale:...
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...Codification of Accounting Standards, a company should not recognize revenue until 1.“it has performed under the terms of the arrangement” and 2. “unless it will indeed receive and retain payment in a form that has value to the company,” (accountingresearchmanager.com) This means that the company has to perform the duty that they have agreed to in their contract and will receive a form of payment in return. The performance of the arrangement can be the delivery of goods, providing services, or providing information. Once a company performs the terms of the arrangement, the revenue is deemed as earned; however, at least part of the job must be fulfilled. In addition, the company should not recognize revenue even if their clients paid in advance to fulfillment of the agreement. Revenue is realized or realizable when “the seller receives cash or assets from the customer that is convertible into cash,” (accountingresearchmanager.com) This must occur before revenue is recognized. In the case, “Lighthouse”, the issue of how revenue should recognized for the sales of both Ship Finder devices and service arises. In this particular case, the company Lighthouse created a hardware unit which it installs in ships and provides the services for this unit. This device and service are utilized together in providing information to shipping companies on the ship location, speed, and current local weather. Lighthouse requires its customers to sign two separate contracts, one for the device...
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...Wal-Mart leadership became successful due to the company’s effective leadership style, their organizational structure and its culture. Wal-Mart’s organization culture is recognized to be more of bonded organization between the employer and the employee. Sam Walton, the company’s owner, shared his vision for the company with his associates and made them partners in the success of his company, after Sam died, his legacy remained the same with new management and continued to grow successfully and still remain number one in retail today, because management recognized his vision and carried it out as Sam would have done. New management did not dismantle Sam’s vision but kept the success going unlike Times Picayune, this organization lacked a successful organizational structure and endured more of procedural issues. After Times Picayune owner, Ashton Phelps Jr. retired, his vision was not carried out as he intended. After 175 years, new owner Ricky Matthews, dismantled Phelps vision and emphasized his own vision that became more procedural and steep, which caused the culture of the business to miscommunicate. Workers in this environment are more focus on pleasing the boss, instead of their work performance due to the company’s rules and policies being procedural and controlled without any flexibility. This type of culture causes employee turnovers and a bad reputation for the business. Matthews not only changed the culture of Time Picayune, but he lay off all active employees without...
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...Auditing and Assurance Standards Council Philippine Auditing Practice Statement 1003Ph GUIDANCE IN DEALING WITH REPORTS REQUIRED BY THE SEC RELATING TO INCREASE IN AUTHORIZED CAPITAL STOCK OF A CORPORATION PAPS 1003Ph PHILIPPINE AUDITING PRACTICE STATEMENT 1003Ph GUIDANCE IN DEALING WITH REPORTS REQUIRED BY THE SEC RELATING TO INCREASE IN AUTHORIZED CAPITAL STOCK OF A CORPORATION CONTENTS Paragraph Introduction………………………………………………………………… 1-2 Objective…………………………………………………………………… 3 Types of Engagements that May be Performed…………………………….. 4-14 Acceptance of an Engagement Relating to Increase in Authorized Capital Stock……………………………………………….. 15-16 Defining the Terms of an Engagement to Perform Agreed-Upon Procedures………………………………………………………………. 17-20 Reporting on Agreed-Upon Procedures Engagements……………………… 21-23 Wording of the Auditor’s Representation Letter to Accompany the Agreed-Upon Procedures Report……………………………………. 24-25 Effective Date……………………………………………………………….. 26 Appendix 1: Required SEC Procedures Relating to an Application for Increase in Authorized Capital Stock as Contained in SEC Memorandum Circular No. 6, Series of 2008 Appendix 2: Example Auditor’s Reports on Agreed-Upon Procedures Engagements Appendix 3: Illustrative Auditor’s Representation Letters 2 PAPS 1003Ph Philippine Auditing Practice Statements (PAPS or Statements) are issued by the Auditing Standards and Assurance Council...
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...Academic Year: 2014/15 Module code: P13505, Level 3 Autumn Semester Module Outline: Auditing, Governance and Scandals (AGS) |Module Convenor |Dr. Kevin Dow, AB474 | |Lectures |Dr. Kevin Dow | | |TH 4:00-5:30, TB 329 | |Additional Staff |Cass Lai, AB247 | |E-mail addresses |kevin.dow@nottingham.edu.cn | | |cass.lai@nottingham.edu.cn | |Office Hours |Dr. Kevin Dow: Th, 2:00 pm - 4:00 pm, every Thursday until Exams (except December 11 and 25) | | |Cass Lai: Th, 2:00 pm - 4:00 pm | KEY POINTS • This is a Level 3, 10 credit module; • Assessment basis: a one and a half hour Examination (100%); • Keywords: Audit; Governance; Corporate Scandals; Audit Theory and Practice; Accountability; • Pre-requisite module: P12307 Financial Reporting. MODULE AIMS To use a mix of textual and...
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...University of North Texas ACCT 4400 (3 hours): Auditing - Professional Responsibilities Summer II 2012 Section 001 - Section Time Place 001 MTWR 10:00am -11:50am BLB 255 Instructor: Jay Baker, MSFS, MBA,CPA,CFP Email: Best way to contact me – EMAIL ME ONLY at Keith.Baker@unt.edu Phone: 940.369.8156 Office and Office Hours: BLB 387C - Tue. & Wed. 12:00 p.m. – 1:00 p.m. Required Materials: 1. Auditing & Assurance Services: A Systematic Approach. Messier, Glover, and Prawitt. 8th ed. 2012. Prerequisites: ACCT 3120 and ACCT 4100; BLAW 3430; must have a 2.5 GPA in all ACCT 3000 and ACCT 4000 courses taken at UNT or their equivalent taken at other colleges and universities to take this course. ACCT 4400 may not be taken more than twice whether at UNT or at another college or university. Class Website: A class website will be established and maintained throughout the course on Blackboard (go to http://www.unt.edu/ and click the link at the top for “Blackboard”). Course materials such as notes will be available on Blackboard. You are responsible for anything that I note through Blackboard emails and announcements. Course Description: Introduction to auditing and the professional responsibilities of a career in any specialty of the accounting profession. Topics include the legal and ethical responsibilities of accountants; professional auditing standards; the audit risk model; the acquisition, evaluation and documentation of audit evidence; reports on the results of the audit engagement...
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...Gaviola, Harold Dave B. BSA-V Assignment in COMED421/0180/8:30-9:30PM PSA 401: Auditing in a Computer Information Systems Environment - The increasing availability of computer-based accounting systems that is capable of meeting both functional and economic circumstances of even the smallest entity impacts on the audits of those entities. Small entities’ accounting systems often make use of personal computers. Philippine Auditing Practice Statement 1001, “CIS Environments—Stand-Alone Personal Computers” gives additional guidance regarding the special considerations of such an environment. - Small entities are likely to use less sophisticated hardware and software packages than large entities (often “packaged” rather than developed “in house”). Nevertheless, the auditor has sufficient knowledge of the computer information system to plan, direct, supervise, and review the work performed. The auditor may consider whether specialized skills are needed in an audit. - Because of the limited segregation of duties, the use of computer facilities by a small entity may have the effect of increasing control risk. For example, it is common for users to be able to perform two or more of the following functions in the accounting system. • Initiating and authorizing source documents. • Entering data into the system. • Operating the computer. • Changing programs and data files. • Using or distributing output. • Modifying the operating systems. - The use of computer information...
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...“A STUDY ON BANK AUDITING” BACHELOR OF COMMERCE BANKING & INSURANCE SEMESTER V (2013-14) SUBMITTED BY: ANERI SHAH ROLL NO - 88 PROJECT GUIDE: PROF. SONALI DEOGIRIKAR K.J SOMAIYA COLLEGE OF ARTS,& COMMERCE, VIDYAVIHAR (EAST), MUMBAI-400077 K.J.SOMAIYA COLLEGE OF ARTS, & COMMERCE, VIDYAVIHAR (EAST), MUMBAI – 400077 PROJECT ON: “A STUDY ON BANK AUDITING” BACHELOR OF COMMERCE (B&I) SEMISTER V (2013-2014) Submitted In Partial Fulfillment of the requirements For the Award of the Degree of Bachelor of Commerce- Banking & Insurance By Ms. ANERI SHAH ROLL NO.88 K.J.SOMAIYA COLLEGE OF ARTS, & COMMERCE, VIDYAVIHAR (EAST), MUMBAI-400077 CERTIFICATE This is to certify that Ms.ANERI SHAH of B.com. Banking & Insurance Semester V (Academic Year) 2012-2013 has successfully Completed Project on “A STUDY ON BANK AUDITING” under the guidance of PROF.SONALI DEOGIRIKAR (Mrs.SMITA DAYAL) (Dr.SUDHA VYAS) Course co-ordinator Principal INTERNAL EXAMINER EXTERNAL EXAMINER (Mrs. SONALI DEOGIRIKAR) Project Guide DECLARATION I, Ms. ANERI SHAH the student of B.com - Banking & Insurance - Semester V (2013-2014) hereby declares that I have completed Project on “A STUDY ON BANK AUDITING”. Wherever the data/information has been taken from any book or other sources have been mentioned in bibliography. The information submitted is true and original to the best of my knowledge. Student’s Signature Ms. ANERI SHAH (ROLL...
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...Board Member Jay D. Hanson – Board Member Steven B. Harris – BM 2. Describe the PCAOB’s annual fee structure for registered firms. The registration fee will be computed individually for each firm submitting a Form 1 and will be based on the number of issuer clients that an applicant audited during the preceding calendar year. A table showing this fee is set forth below. Preceding Year Issuer Clients | Fee | 0-49 | $500 | 50-100 | $3,000 | 101-1000 | $29,000 | >1001 | $390,000 | 3. How many Auditing Standards has the PCAOB issued? What are interim standards? There are 18 Auditing Standards have been adopted by the PCAOB and approved by the SEC were written by the form of AS No. xx In April 2003, the Board adopted certain preexisting standards as its interim standards. Pursuant to Rule 3200T, Interim Auditing Standards consist of generally accepted auditing standards, as described in the AICPA's Auditing Standards Board's Statement of Auditing Standards No. 95, as in existence on April 16, 2003, to the extent not superseded or amended by the Board. (49 counts) 4. How often are registered firms inspected? The PCAOB regularly inspects those firms that issue audit reports opining on the financial statements of issuers. The actual number of firms that the PCAOB regularly inspects fluctuates since certain registered firms cease to issue audit opinions while other firms will begin to issue audit reports for the first time. In general, the PCAOB inspects...
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...Recommendation Brief for an Internal Accountant Claudia I. Hernandez University of Phoenix Recommendation Brief for an Internal Accountant When a company is experiencing difficulty controlling their accounting functions, hiring an internal auditor will alleviate some of the problems. Internal auditing helps companies to look at ways to improve and achieve short-term and long-term objectives. Internal auditors are hired to perform internal audits that look at a company’s operations, investigating fraud, financial reporting, safeguarding assets, and compliance of the laws and regulations set for companies. The internal auditors are employed to improve a company’s internal controls. Effective working internal controls detect and prevent fraud that is tested by internal auditors. A company must evaluate the experience and educational background of a potential internal auditor before making a decision to ensure the auditor is capable of meeting the company’s needs. Justifying the benefits of using an internal auditor Operational auditing is perhaps the most beneficial use of an internal auditor for a company experiencing difficulty controlling accounting functions. Operational auditing focuses on making recommendations on efficient use of resources, achievement of business objectives, and compliance with company policies (Louwers, Ramsay, Sinason, & Strawser, 2007) An operational audit gives you a three dimensional perspective of a company. Financial statements can highlight...
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...Project: Compliance Auditing | Final DraftAdvanced Auditing | | | | | OUTLINE I. Compliance Audits a. Objective, Scope, and Methodology b. Regulations II. Features & Benefits a. Assessment of overall security b. Exposures that create the greatest risk c. Internal Controls III. The Compliance Audit Process d. Interviews and Reviews e. Preparation f. Procedural Component IV. Conclusion Compliance Auditing Compliance auditing determines whether a process or transaction has or has not followed applicable rules. If rules are violated, the auditor determines the cause and recommends ways to prevent future deviations. The rules being tested can be those created by the organization for itself through corporate by-laws, policies, plans, and procedures; can be those imposed on the organization through external laws and regulations; or can be those external standards that the organization has chosen to follow. In addition Compliance auditors gather evidence regarding fraudulent or abusive activity affecting governmental entities. Their audits are designed to detect and deter the misappropriation of public assets and to reduce future fraud risks. (Associates, 2003) Compliance auditors must have the skills to research issues effectively using authoritative materials, understand how to apply the knowledge gained to the circumstances being tested, and be able to explain to the organization...
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...Auditing Standards Accounting 491 November 16, 2015 Dwayne Thompson Auditing Standards The art of auditing has evolved over several decades. The use of technology has changed the procedure significantly. Along with the evolution of standards and procedure are necessary to ensure economic growth and financial stability. Before 2002, it seems as though auditing took a reactive approach to questionable circumstances and dealings. Today the powers in control are producing a proactive approach. That is to say, standards and regulations are set in place to ensure users of financial data are getting timely and accurate reports. Elements of Generally Accepted Auditing Standards Information and history regarding Generally Accepted Auditing Standards (GAAS) are set in place for auditing private companies. Like other auditing procedures, these same rules are used for publicly traded companies (Loughran, 2015). Before the process of audit begins, there are certain particulars that are examined to ensure creditability of the reports' outcome. Audits are relied upon heavily to encourage an upward moving economy. The elements involved are, general standards, standards of fieldwork and standards of reporting. General standards refer to the competency of the auditor, his or her independence and the due professional care that is rendered. Standards of fieldwork encompass how the auditor performs his or her work. This guidance entails the gathering and organization of data that will ensure...
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...Evolution of Auditing Abstract It is essential for any business to use physical, mechanical, and electronic controls. Audits are a critical and an important part of every company whether performed internally or externally. The definition of physical control is safeguarding the assets of the business. Mechanical and electronic controls were created to safeguard assets and enhance the accuracy and reliability of the accounting records. Some methods that managiment and auditors can employ to prevent and detect fraud, errors, and illegal acts are: improving knowledge, improving skills, and improving abilities. Just as technology progresses so does society and the need for advancement, with businesses growing, merging, and seeking international expenditures accounting here in the states has started to adjust. With the proper data analysis companies can let their managirs track daily transactions to evaluate how the organization is performing. Introduction Just as technology progresses so does society and the need for advancement, with businesses growing, merging, and seeking international expenditures accounting here in the states has started to adjust. Managirs can base future goals on the data that they receive about present business performance. The process consists of seven phases: planning, risk assessment, audit program, gather evidence, form conclusions, deliver audit opinion, and follow up. Here in the United States most publicly traded companies use GAAP (Generally Accepted...
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...still to be called accounting? This chapter seeks to explore the major issues facing contemporary ®nancial reporting ± this will include its interrelationship with external auditing and the provision of assurance to those outside the reporting entity. After all, `[e]ffective reporting and accounting, and external scrutiny from auditors, are essential for effective corporate governance' (Company Law Review Steering Committee, 2001: para. 8.1). To understand the ®nancial statements, one needs to appreciate the auditors' work and opinion, and, conversely, to understand the auditors' work and opinion, it is necessary to appreciate the scope and limitations of the ®nancial statements. All too often, ®nancial reporting and external auditing are treated and discussed in isolation despite being inextricably linked. However, the ®nal ®gures in the ®nancial statements may come about as a result of negotiations between management and their auditors ± with the auditors examining the reasonableness of management's justi®cations for their representations. Indeed, the modern audit with its emphasis on high-level business risks could almost be viewed as the `audit of motivations' ± to understand the ®gures in the ®nancial statements, it is important to understand management's motivations. Financial reporting and auditing are not just technical subjects, but they...
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...Generally Accepted Auditing Standards Joey Wines Franciscan University Generally Accepted Auditing Standards Generally Accepted Auditing Standards, also known as GAAS, is a rather broad topic with many guidelines to follow. An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. A short definition of GAAS is the set of systematic guidelines used by auditors when conducting audits on companies' finances, ensuring the accuracy, consistency and verifiability of auditors' actions and reports (Investopedia). There are a total of 10 standards that are broke up into three main sections. These three sections include the general standards, standards of fieldwork and standards of reporting. Each section is littered with requirements that the auditor and the subject company must meet (Investopedia). In short, an auditor must adequately plan the audit in advance, be independent of the client at all times, and always obtain reliable evidence (Investopedia). The companies must present their financial statements in accordance with GAAP, remain consistent in their reporting, and explicitly disclose all pertinent information (Investopedia). 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. The first section I will talk about for the Generally Accepted Auditing Standards are the general standards...
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