Case 2.1 ENRON 1. Auditor independence: the independence the internal audito,r or of the external auditor from anyone that may have a financial interest in the business which is being audited. Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit Independence. This requires integrity and an objective approach to the audit process. The concept requires the auditor to carry out his or her work freely and in an objective manner
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|Supplier name: | | |Site country: | | |Site name: | | |SMETA Audit Type:
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INFORMATION SYSTEMS AUDITING Haryono, MCom, Ak 1 Why study Information Systems and Information Technology? • Vital component of successful businesses • Helps businesses expand and compete • Businesses use IS and IT: To improve efficiency and effectiveness of business processes For managerial decision making For workgroup collaboration IS and IT change the business process dramatically 2 IT Inside Organization 3 SIMASTERGAMA Case study: UGM UNIVERSITY ENTERPRISE
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Financial Crisis” During the period before the most recent financial crisis, auditors failed to give advance warnings of systemic risk, leading some of financial institutions collapsed. After research, the investigator suggests that lack of advance warning results from the limitations of existing auditing and regulation and accounting institutions rather than from the inattention of potential risk made by auditors. This paper involves data from samples of all US headquartered US-based bank holding
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their fiscal year. Sample, or cycle, counts are often conducted between full inventory counts. Sample counts are not intended to check the entire inventory. Instead, they check a portion of the inventory listed on the books. The primary reason auditors observe their client taking the physical inventory is to make sure the inventory reflected on the balance sheet actually exists and that the balance sheet includes all inventory owned by the company. This includes all raw materials, supplies, inventory
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EVALUATION OF REASEARCH PAPER Title: Audit Research after Sarbanes-Oxley Author: Mark L. DeFond and Jere R. Francis A. Describe the research problem or question. Evaluate the importance of the research question to audit practice. This paper attempts to stimulate research into some of the important questions implicitly raised by SOX regarding the audit profession’s potential failings. Enron’s failure and the accounting scandals at Worldcom and other companies provide compelling evidence that
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different audit engagements? Materiality is based on the auditors’ professional judgment. Meaning that materiality threshold will vary. The numbers will depend on things such as the situation of a company. The auditor decides what appropriate threshold is relevant in this audit engagement. The auditor needs to provide reasonable assurance that the company’s financial statements do not include any material misstatements, and the auditor should determine the decision of thresholds. [c] Why is
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internal controls over the financial reporting, and substantiate samples of the financial statements. The audit is considered the highest level of assurance for third parties because of the testing of sample items on the financial statements. The auditor can check bank statements to verify cash or physically inspect a warehouse to verify inventory. The benefits of an audit service are that it's the highest level of service that a CPA can perform. This is the service that would give the most assurance
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Auditor independence refers to the position of the external auditor’s level of personal and financial ties to a particular organization which can sometimes be complex. When deciding whether to accept an auditing engagement, one must judge their independence and objectivity. This is why integrity is imperative in business, especially within the world of audit. Congress passed the law, The Sarbanes-Oxley Act of 2002 (SOX) that applies to publicly held companies and their auditors. It was intended
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of microfinance institutions, the auditor should pay attention to: the main concerns of the leaders on the objectives and strategies of the institution, the institution's organizational structure, operation of its business, results of operations, ability to self-finance, operations and other major economic events may affect its financial statements, accounting issues and changes accounting policies, and funding sources. To obtain this information, the auditor should meet with the leaders of the
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