. This significant influence will be observed in the auditing standards that have to be followed by Keller CPAs in this audit. The six ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct will be observed during this audit. Those principles are independence, responsibilities, the public interest, integrity, objectivity and independence, due care, and the scope and nature of services. By maintaining
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114 (Objectives 11, 13, 15) the following questions deal with audits by CPA firms. 14. Choose the best response. A. Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements? 1) It is difficult to prepare financial statements that fairly present a company’s financial position, operations, and cash flows without the expertise of an independent auditor. 2) It is management’s responsibility
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Financial Reporting and Analysis Chapter 4 Solutions Structure of the Balance Sheet and Statement of Cash Flows Exercises Exercises E4-1. Determining collections on account (AICPA adapted) Cash receipts from sales include cash sales plus collections on account computed as follows: Cash sales Beginning accounts receivable Credit sales Less: Ending accounts receivable Total Cash receipts from sales $ 200,000 400,000 3,000,000 __(485,000) $3,115,000 Alternative Solution: T-account analysis of accounts
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IAs use continuous auditing as a method to perform control and risk assessments automatically on a more frequent basis. According to Canadian Institute of Chartered Accountants (CICA) and the American Institute of Certified Public Accountants (AICPA), Continuous Auditing is defined as a methodology that enables independent auditors (both internal & external) to provide written assurance on a subject matter using a series of auditors’ reports issued simultaneously with, or a short period of
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Chapter 1 Ethical Reasoning: Implications for Accounting Ethics Reflection PENN STATE CHILD ABUSE SCANDAL: A CULTURE OF INDIFFERENCE What motivates an otherwise ethical person to do the wrong thing when faced with an ethical dilemma? Why did Joe Paterno and administrators at Penn State University look the other way and fail to act on irrefutable evidence that former assistant football coach Jerry Sandusky had raped and molested young boys, an offense for which Sandusky currently is serving
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based on whether the CPA’s report on the client’s financial statements results in the approval of a bank loan B. 3) Disclosing confidential information to another accountant interested in purchasing the CPA’s practice. C. 3) prohibited under the AICPA rules of conduct. 4-20 A) Yes B) No C) No D) No because recommending tax shelters is not prohibited as long as the service does not meet the characteristics of an abuse tax avoidance strategy, but has the potential to impair independence. E)
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Nature and Functions of Auditing August 31st, 2012 Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar. In your paper, be sure to address the following: • Describe the elements of the Generally Accepted Auditing Standards (GAAS). • Describe how these standards apply to financial, operational, and compliance audits. •
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1234 N 10th St. Arlington Park, NE 68752 July 12, 2014 Mr. Kevin Schuller, CEO Schoneweis , Inc. 2782 Park Blvd. Odell, NE 68744 Dear Mr. Schuller, Subject: Role of Auditors Our firm offers auditing and other assurance services. Our auditing services are comprehensive, reliable, and objective. Our auditors comply with all required literature and pronouncements in our audits. It is for this reason our clients, external users, and the general public place high value in our work and takes
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3-28 1) a. The scope of an audit has been restricted b. Material c. Qualified audit report. 2) a. Not Independent b. N/a c. Disclaimer of opinion 3) a. No departure necessary b. N/a c. Unqualified report with emphasis of matter, explanatory paragraph because of a change in accounting principal 4) a. No departure necessary b. N/a c. Unqualified report with emphasis of other matters, explanatory paragraph about the substantial doubt about
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considering the history of the GAAP and the reason for the creation of its principles. As previously mentioned, the American Institute of Certified Public Accountants (AICPA) has been responsible for setting accounting standards. In 1973, the Financial Accounting Standards Board and the Governmental Accounting Standards Board joined with the AICPA in advising, providing input, and determining United States accounting standards- GAAP. The Generally Accepted Accounting Principles include, but are not limited
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