Chapter 2 The CPA Profession Review Questions The four major services that CPAs provide are: 1. Audit and assurance services Assurance services are independent professional services that improve the quality of information for decision makers. Assurance services include attestation services, which are any services in which the CPA firm issues a report that expresses a conclusion about the reliability of an assertion that is the responsibility of another party. The four categories of attestation
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Auditing, Attestation, & Assurance Services Paper Auditing, Attestation, & Assurance Services Auditing, attestation and assurance are various financial services provided for an organization based on their individual needs. The needs of companies differ as will the scope of their auditing, attestation and/or assurance service requirements. Auditing boasts both a formal definition and an informal one which describe the accounting function in its basic form as well as its interpretive
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Introduction to Auditing SOLUTIONS FOR REVIEW CHECKPOINTS 1-1 Auditors add credibility to financial information provided by the accountable party such as management (i.e. auditors make the financial or other information more likely to be true). Other common ways of characterizing this property of audited numbers is that the numbers are more accurate, have higher assurance, or are more reliable. These relate to different dimension of truthfulness, as we discuss later in the text. 1-2 Auditing is the
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Under the current situation, there are two choices the auditor faces. Option one is to assist Susan in consolidating her financial statements, mainly by walking her through the process of closing the decorative pillow department and helping estimate the costs associated with doing so. While the second option is to refuse Susan of any more assistance on this matter with the reason being that you are not MHA’s accountant but an auditor working for the general public. Both choices seem viable but if
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created the need for a specialist in various business controls: the internal auditor. We can understand better the nature of internal auditing today if we know something about the changing conditions in the past and the different needs these changes created. What is the earliest form of internal auditing and how did it come into existence? How has internal auditing responded to changing needs? As the operations of an organisation become more voluminous and complex, it is no longer practicable
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independence of internal auditing in China Term Paper Advanced Auditing February, 15 * The independence of internal auditing in China Abstract China’s rapid economic growth boosted its accounting system that has evolved at a singular rate. The national government encourages foreign investors to participate in the domestic capital market actively. The government also strictly supervises the different national economic activities; as a result, the credibility of the auditing system plays a important
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Abstract This paper discusses the role and function of the Public Company Accounting Oversight Board (PCAOB) and Auditing Standard 5 (AS 5). Due to the increased demand for oversight in auditing standards, this paper also examines the impact of Sarbanes-Oxley (SOX) and the reasons for the creation of the PCAOB, as well as the implementation of the rules and regulations. Additionally, this paper examines the impact of AS 5. Keywords: audit, AS 5, financial statements, PCAOB, SEC, SOX Table
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this paper is to explain the nature and functions of auditing in Indian Casino Industry. Generally, the Indian Casinos are required to issue the annual audited financial statements and compliance audit reports. Users of financial statements look to the independent auditor’s report for assurance about the reliability of information and its conformance to generally accepted accounting principles. The Casino’s audit process is a systematic process designed to obtain and evaluate evidence regarding management’s
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The Sarbanes-Oxley Act of 2002 and the PCAOB Liberty University Abstract As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession. As a result of the act, the PCAOB was created. Since
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“Ethics Audit Benefits.” Please respond to the following: Compare (1) the benefits associated with conducting an ethics audit against (2) the challenges of measuring nonfinancial performance and the risks inherent in ethics auditing. Ethics audit is a systematic evaluation of an organization’s ethics program to determine if it is effective or not. Effectiveness of programs and polices can be improved and organization can identify potential risks and liabilities and can improve its compliance
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