...OFFICE OF THE INSPECTOR GENERAL THE SOCIAL SECURITY ADMINISTRATION’S UNPROCESSED ANNUAL EARNINGS ENFORCEMENT SELECTION August 2012 AUDIT REPORT Introduction This is a report of my audit on Social Security Administration’s Unprocessed Annual Earnings practice. The audit was conducted by Olayinka Olagundoye, of Houston, Texas Audit during August 2012. Objective My audit was to (1) to assess Social Security Administration's (SSA) development in resolving 2.5 million earnings enforcement selections. (2) To determine the amount of improper payments to affected beneficiaries. Background The social security benefits objective is to give earnings to a person or family due to loses from reaching full retirement age. How much social security benefit one can qualify to receive annually and continue to receive monthly depends on the individual’s personal situation as follows: * To receive Social Security (SS) benefits during the year you become full retirement age which is age is 66. If one decides to work and reach full retirement age or older, the beneficiary may keep all benefits, regardless of earnings. * To receive Social Security (SS) benefits before the year one becomes full retirement age, the SSA must withhold $1 from your social security benefit for every $2 you earn over the annual limit. One must add earnings in all the 12 months Jan-Dec regardless of the month entitled to receive SS benefits for each $2 you earn above the limit until the month...
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...management is responsible for the financial statements presented, for maintaining effective internal control over financial reporting, and for its assessment of internal control. Our responsibility is to express an opinion on these financial statements, an opinion on management’s assessment, and an opinion on the effectiveness of the company’s internal control over financial reporting based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audit of the financial statements including examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. A company’s internal control over financial reporting is a...
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...AUDITOR’S REPORT Board of Directors, Stockholders, Owners, and/or Management of Keystone Computers & Networks, Inc We have audited the accompanying balance sheet of Keystone Computers & Networks, Inc. (the “Company”) as of December 31, 20XX and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The major audit issue involved will be determining that the client has properly categorized costs between research and development (those costs involved in establishing technological feasibility) and those costs that should be capitalized. The auditors will have to determine at what point the software product reached the point of technological feasibility. We conducted our audit in accordance with auditing standards generally accepted in (the country where the report is issued). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides...
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...Beginning the Audit Report Veronica Hemphill University of Phoenix ACC/546 July 9, 2012 Hemphill Financial Madison, Alabama 35758 July 9, 2012 Mr. Larry Lancaster President, Apollo Shoes 2501 Alabama Lane Phoenix, AZ 35404 Dear Mr. Lancaster: This will confirm our understanding of the arrangements for our audit of the financial statements of Apollo Shoes Inc. for the year ending December 31, 2012. We will audit the company’s financial statements for the year ending December 31, 2012, for the purpose of expressing an opinion on the fairness with which they present, in all material respects, the financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. We will begin the audit process upon reviewing the financial statements, organizational charts, and 2009-2011 federal and state income tax returns. Once the information is carefully reviewed, we will conduct a risk workshop primarily to identify key risks and raise risk awareness, draft an audit plan, and schedule an opening meeting. The opening meeting should include senior management and any administrative staff that may be involved in the audit. During this meeting, the scope of the audit will be discussed. You should feel free to ask the auditors to review...
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...Audit Engagement Report Casey L. Stewart ACC/546 May 21, 2012 Shawn Cerezo Audit Engagement Report Balestra, Harr & Scherer, CPAs, Inc. Casey L. Stewart Partner 528 South West St Piketon, Ohio 45661 Apollo Shoes, Inc. Mr. Eric Unum VP of Finance 100 Shoe Plaza Shoetown, ME 00001 We are pleased to confirm our understanding of the services we are to provide Apollo Shoes, Inc. for the year ended December 31, 2007. We will audit the financial statements of Apollo Shoes, Inc. as of and for the year ended December 31, 2007. Audit Objective The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such opinions. If our opinions on the financial statements are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express...
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...* UNMODIFIED REPORT * UNMODIFIED- The financial statement shows a true and fair view about the company’s financial position * There are no “if”, ”but” or additional information provided. * MODIFIED REPORT * The choices for QUALIFIED can be described in a matrix * Example of insufficient appropriate audit evidence … Except as discussed in the following paragraph… We did not observe the counting of inventories at 31/12/200X… unable to determine inventory quantities by other methods… In our opinion, except for the effects of such adjustments to inventory, if any, had we been able to satisfy ourselves as to physical inventory… The financial statements give a true and fair view… * Example of disclaimer of opinion … Except as discussed in the following paragraph… We were not able to observe all physical inventories at 31/12/200X… unable to determine inventory quantities by other methods… Because of the significance of the matters discussed… we do not express an opinion on the financial statements. * Example of Material misstatement / “except for” As discussed in paragraph 17, no depreciation has been provided… not in accordance with International Accounting Standards… The provision for the year should have been $X… profits would be decreased by $Y. In our opinion, except for the matter referred to above, the financial statements give a true and fair view… * Example of Material misstatement / “adverse opinion” As discussed in paragraph 15...
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...Audit Committee Report According to the Malaysian Code on Corporate Governance (MCCG) 2007 (Revised), under the Accountability & Audit, as well as the Bursa Malaysia Listing Requirements, The board should establish an audit committee comprising at least three members, a majority of whom are independent. All members of the audit committee should be non-executive directors. The board should provide the audit committee with written terms of reference which deal clearly with its authority and duties. First off, on the matter of the compliance on the size of the board/committee, all the companies that we reviewed comply with that limit. 2 of the 12 companies were actually surpassed that minimum requirement, where they have 4 members in their Audit Committee. Those companies that we wish to highlight are Kamdar Group Berhad & Key Asic Berhad. This is a good example as the more members there are in an Audit Committee, there more reliable and independent the information involving the financial statements and any other relevant information will be, albeit, the independence of each member would be a factor to consider. Moving on, the question of whether those who are in the Audit Committees are independent or not come in to place. According to the MCCG 2007, the board of Audit Committee must have a majority of who are independent. The point here that we should note is that, all of the members of the Audit Committee should comprise fully of non-executive directors. Going through...
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...of an audit report. An audit report is a crucial part in the auditing process. It is a guide for users of the financial information. Auditors issue opinions on the financial statements based on certain criteria. The main thing is if the financial statements are presented in accordance to GAAP. Also, modifications can occur after the opinion is issued. Modifications vary depending on the issue at hand. Changes in principles or a report involving other auditors are a few. More will be addressed in the paper. An audit report is different is many ways. Even for one company, the audit report may not be the same every year. Modifications and Opinions in Audit Reports Every publicly traded company gets audited. Pop Iuliana (2012) says, “The purpose of an audit is to improve the degree of trust of the users across the financial situations” (p.454). Companies must present their financial statements in accordance to Generally Accepted Accounting Principles (GAAP). The final stage of an audit is writing an audit report. An audit report “expresses an opinion over the audited financial situations so that any user of this information is able to take decisions based on it” (Iuliana, 2012, p. 453). A standard audit report contains eight parts. The eight parts are report title, audit report address, introductory paragraph, management’s responsibility, auditor’s responsibility, opinion paragraph, name and address of CPA firm, and audit report date...
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...INTRODUCTION A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion. The audit opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements. The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation. Financial audits are typically performed by firms of practising accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors. Internationally, the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) is considered as the benchmark for audit process. Almost all jurisdictions require auditors...
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...Independent Auditor’s Report [Appropriate Address] Report on the Financial Statements We have audited the accompanying consolidated financial statements of ABC Company and its subsidiaries, which comprise the consolidated balance sheet as of December 31, 20x1 and 20x0, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial stamens in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America,. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial...
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...The Audit Report and Internal Control Evaluation University of Phoenix Michelle Melville Auditing/ACC 546 April 21, 2014 Professor Hillary Edmondson Auditor’s Responsibility for Detecting and Reporting Fraud It is the responsibility of the audit engaged in the audit process to detect material misstatement in management’s assertions. These material misstatements must also be properly reported. Arens et. al (2012) defined fraud as “…any intentional deceit meant to deprive another person or party of their property or rights” p 433. Fraud as it relates to financial reporting is the intentional misstatements of the company’s financial statements and the misappropriations of the company’s assets. In conducting the audit, the audit company needs to be able to identify whether the conditions for fraud, as indicated by Arenet. al (2012) exists. These conditions are; incentives or pressures, opportunities, and attitudes or rationalizations. The existence of certain factors help the auditor to identify whether the conditions for fraud exists. According to SAS 99 auditors are required to enter into the audit engagement with professional skepticism, a questioning mind, and must critically examine and evaluate audit evidence using audit procedures. In using professional skepticism the auditor must never assume the honesty or dishonesty with management reporting. The conditions for rationalization may cause even the most honest person to make allowances for committing fraud...
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...Audit Report and Internal Control Evaluation Nathalie Salib University of Phoenix ACC546/PR April 9, 2015 Prof. Rafael Marrero - Diaz ANDERSON, OLDS & WATERSHED Certified Public Accountants Independent Auditor’s Report To the Board of Directors of Apollo Shoes, Inc. We have audited the accompanying balance sheets of Apollo Shoes, Inc. as of December 31, 2007 and 2006 and the related statements of income, shareholder’s equity and cash flow for the two years in the period ended December 31, 2007. Apollo Shoes’ management is responsible for the financial statements presented, for maintaining effective internal control over financial reporting, and for its assessment of internal control. Our responsibility is to express an opinion on these financial statements, an opinion on management’s assessment, and an opinion on the effectiveness of the company’s internal control over financial reporting based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audit of the financial statements including examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the...
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...of Apollo Shoes Inc. From: CBA Auditing Firm Re: Audit Report and Internal Control Evaluation Date: June 10, 2013 CBA Auditing Firm has audited the balance sheets of Apollo Shoes as of December 31, 2012. In addition, our auditing firms also reviewed statements of income such as shareholders equity, comprehensive income, and cash flows for the same period. Our company also assessed Apollo Shoes financial reporting internal controls based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO criteria) and determined that they are adequate and effective for the period ending December 31, 2012. Apollo Shoes Inc. management holds sole responsibility for maintaining effective internal controls, validity of their financial statements. CBA Auditing responsibility is only to reflect an opinion on management’s assessment, the company’s internal controls, and the financial statements based on the results of our Audit. Our audit was conducted in accordance with the standards set by the Public Company Accounting Oversight Board. These standards require for our organization to prepare and execute the inspection to attain reasonable assurance of whether Apollo Shoes Inc. financial statements are without material misstatements and determine if the internal controls are effective enough over financial reporting for all material aspects. Our audits provide a reasonable basis for our opinion; therefore the audit included the examination of; * Evidence supporting...
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...Anderson, Olds, and Watershed CPAs 1234 CPA Lane Shoetown, ME 00001 123-456-7890 INDEPENDENT AUDITOR’S REPORT To the Stockholders Apollo Shoes, Inc. We have audited the accompanying balance sheets of Apollo Shoes, Inc. as of December 31, 2008, and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the year ended, and related notes to the financial statements. Managements Responsibilities for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements, in accordance with accounting principles generally accepted in the United States of America; this includes, the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether do to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the...
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...FORMAT FOR INTERNAL/EXTERNAL AUDIT REPORT I. Title Page An Internal and External Audit Report Of Selected Companies for Business Research Submitted by: (List names in alphabetical order) II. Internal and External Audit Report of Company 1 1. Brief description of the Company - History - Ownership/Key resource person - Products/Services 2. Presentation of Internal Audit Report in Tabular Form - Key factors - Weight distribution - Rating of key factors - Weighted score - Brief interpretation of weighted score 3. Presentation of External Audit Report in Tabular Form - Key factors - Weight distribution - Rating of key factors - Weighted score - Brief interpretation of weighted score III. Internal and External Audit of Company 2 1. Brief description of the Company - History - Ownership/Key resource person - Products/Services 2. Presentation of Internal Audit Report in Tabular Form - Key factors - Weight distribution - Rating of key factors - Weighted score - Brief interpretation of weighted score 3. Presentation of External Audit Report in Tabular Form - Key factors - Weight distribution - Rating of key factors - Weighted...
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