Insurance. Among factors that have gave rise to the corporate failure of HIH Insurance, that of the ethics of auditing profession, roles of auditors and effectiveness of audit committee have regarded as particular significance. Contents Executive Summary 2 1. Introduction 4 2. Discussion 5 2.1 Audit Independence 5 2.2 Audit Committee 7 2.3 Ethical Considerations 8 3. Conclusion 10 Reference List 11 1. Introduction HIH Insurance was established when MW Payne Liability Agencies Pty
Words: 2136 - Pages: 9
Doughtie’s Foods, Inc. In the late 1970s, William Nashwinter accepted a position as a salesman with Doughtie's Foods, Inc., a publicly owned food products company headquartered in Portsmouth, Virginia. The ambitious young salesman impressed his superiors with his hard work and dedication and was soon promoted to general manager of the Gravins Division of Doughtie's a promotion that nearly doubled his salary. The Gravins Division was essentially a large warehouse that wholesaled frozen-food products
Words: 2118 - Pages: 9
while performing audits on companies’ financial statements, thus ensuring its accuracy, consistency, and verifiability (Morris, 2013). Hence, these standards provide the ground rules for conducting every audit in such a way that the auditor is able to properly express an opinion on a company’s financial statements giving reasonable assurance to stakeholders interested in those statements about whether (or not) these statements fairly present the company's financial condition. Audit Section 150 states
Words: 734 - Pages: 3
Case #2.4 – Enron: Quality Assurance I. Technical Audit Guidance To maximize the knowledge acquired by students, this book has been designed to be read in conjunction with the post-Sarbanes-Oxley technical audit guidance. All of the post-Sarbanes-Oxley technical guidance is available for free at http://www.pcaobus.org/Standards/index.aspx. In addition, a summary of the Sarbanes-Oxley Act of 2002 is also available for free at http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Sarbanes-Oxley+–+The+Basics
Words: 1706 - Pages: 7
The Sarbanes Oxley Act was signed into law by President Bush in 2002. This Act was in direct response to the accounting scandals of the early 2000s. A time that I remember very well, because I’d just graduated from college into the accounting industry, and it was in a total uproar. The Sarbanes Oxley Act (SOX) ordered a number of reforms to enhance corporate responsibility, financial disclosure, and to fight corporate and accounting fraud. This regulation also put financial as well as criminal pressure
Words: 904 - Pages: 4
1 Introduction 1.1 Overview This case study revolves around the “non-profit” i.e. Corporate Philanthropic organization known as National Kidney Foundation (NKF) which aims to give aid to needy kidney patients. It relies largely on donations to fund the organization’s most direct way of helping the patients which is to set up dialysis centers. Across its development as an organization, NKF has also adopted other forms of helping needy kidney patients albeit in more indirect ways. NKF has set up
Words: 2532 - Pages: 11
for new startup companies that are not bringing in the revenue to cover this price. In response to this problem, Congress passed the JOBS Act that would help smaller public companies avoid this for a few years the internal controls reporting and audit requirements put in place. All these acts and rules were put in place to prevent a repeat of the scandals that cost investors billions. Companies are now required in annual reports to have chief executives and chief financial officers attest to the
Words: 428 - Pages: 2
ability to access information from different perspectives, other than research done by the big four firms. In addition, auditors will have a center of reference where to acquire reference materials about a particular matter in an ongoing concern in an audit that is being performed. The creation of the center could include having continuing education in regards
Words: 865 - Pages: 4
maintains data integrity, and enables communication. In addition, an accountant should access to information, achieves operational goals effectively, and consumes resources efficiently. Thus, information systems auditing supports traditional audit objectives that focus on asset safeguarding, data integrity,
Words: 279 - Pages: 2
Which of the following situations would lead to an auditor increasing auditor business risk? 1. The client risk profile is assessed as low risk. 2. Audit staff members are competent and taking continuing education regularly. 3. There are continued problems collecting the audit fee from a client. 4. The audit client uses enterprise risk management to assess fraud risks. b. Which of the following quality control practices at the individual engagement
Words: 4505 - Pages: 19
