Audit Quality

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users (Boynton & Johnson, 2006). In auditing there are many attributes that describes the auditor’s work. Elements of the Generally Accepted Auditing Standards are followed by auditors. The Generally Accepted Auditing Standards apply to financial, operational, and compliance audits. Auditing public traded companies has been effected by the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board. Auditors have additional responsibilities because of

The purpose of Part 1 is to perform preliminary analytical procedures. You have been asked to focus your attention on two purposes of analytical procedures:

 Audit Process 2-3 Chapter 02 - Financial Reporting and Analysis   Generally Accepted Auditing Standards Auditing Procedures Audit Report Types of Audit Qualifications ―Except for‖ Qualification Adverse Opinion Disclaimer of Opinion Analysis Implications from Auditing Analysis Implications of the Audit Process Audit Risk and Its Implications Analysis Implications of Auditing Standards Analysis Implications of Auditor Opinions Analysis Implications of Explanatory Language for Uncertainties Analysis Implications of the SEC Appendix 2B: Earnings Quality  Determinants of Earnings Quality Accounting Principles  Income Statement Analysis of Earnings Quality Analysis of Maintenance and Repairs Analysis of Advertising Analysis of Research and Development

The auditors audited the financial statements in accordance to the standards on auditing by complying with ethical requirement and reasonable assurance that the financial statements are free from material misstatements.

Relevant professional standards for this assignment include AU Section 230, “Due Professional Care in Performance of Work,” AU Section 316, “Consideration of Fraud in a Financial Statement Audit,” AU 319, “Consideration of Internal Control in a Financial Statement Audit.”

The APES 110 and the FIA code of ethics for professional accountants are more similar than different even though there are a number of differences which is important. Nevertheless, this piece of writing will focus mostly on the differences between the two codes of ethics, in a lot of cases, applying the codes to similar information pattern will give in similar results. Furthermore there are some difference and drafting conventions. For APES 110 it consists of three parts: Part A applies to all members. In this part of the code it explains the overarching accountability to perform in the public interest and the fundamental principles of

To establish effective policies in order to enhance ethics in corporate America and prevent significant catastrophes such as the global economic meltdown of 2008 we need to propose new ethical policies and standards in our corporate system. Ethical issues must be on the strategic agenda! Integrity management should be a priority not only because it is legally required, but because it is the right thing to do. This memorandum will analyze the proposed ethical policies such as strengthening auditors’ independence and strengthening audit committee to make reforms in existing corporate sector.

Various activities and steps are conducted when deciding and considering the acceptance of a new audit client including these eight. Firstly, financial statements and reports are acquired and reviewed. These reports include the company’s annual reports, management reports and income tax returns. Next step includes investigating and inquiring of third parties on the particular company. The opinions of third parties especially the external users such as bank, creditors, suppliers, tax authorities and even consumers are essential to know more about a company. Besides that, permission should be gained to communicate with the

My research is different from the prior studies in the fact that the studies do not include earnings per share and return on assets in their testing. I believe both variables measure a firm’s profitability and its ability to generate cash. These two indicators allow for my results to indicate whether a firm’s financial statements are doing well and have not been restated based on the experimental variables. I believe that my findings have proved empirical evidence that longer auditor tenure and industry specialization are negatively associated with low audit quality. As for firm size, there is currently no correlation with low audit quality

One of the key roles of the external auditor is to protect the interest of the public. To achieve this, it is important for the public to trust and have confidence in the work of an auditor. It is crucial that auditors appear independent to the public in both fact and appearance. For this reason, it is the auditor’s responsibility to ensure that there are no personal or business

b. The legal system is an important institution that has a major impact on the auditing profession. While SOX does not directly make changes to this institution, it is an open question whether we need the kind of extreme litigation exposure we currently have in the U.S. in order to achieve an appropriate level of audit quality, and we casually note that Canada and Australia appear to have credible auditing without imposing such a brutally litigious environment. Thus, we encourage researchers to address issues regarding the role and importance of litigation in maintaining high audit quality.

International standards on auditing were set to provide guidance for audits conducted all over the world. As globalization becomes more prevalent, it is essential that these standards are set to provide guidance in the conductions of audits internationally. Even though there are international standards, each country can develop their own set of standards and adopt some of the aspects of the international standards on auditing. However, there is no requirement that the standards set in a particular country have to be completely identical to those provided by the IAASB. Both the US and China are powerful world leaders with their hands in investments all around the globe. As there is always a risk of financial reporting fraudulency, it is essential that each country has their own standards when it comes to conducting an audit in their country. In the US, the American Institute of Certified Public Accountants (AICPA) established Generally Accepted Auditing Standards (GAAS) to be used as guidance for the CPA’s who are engaged to perform an audit. However, after the the Sarbanes Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) was created to oversee the audits of public companies in order to protect stakeholders interest in the preparation of informative, accurate and independent audit reports. Even non-U.S. public accounting firms that audit or play a substantial role in the audit of U.S. issuers, brokers, and dealers are subject to oversight by the

The primary information was collected through a questionnaire which was distributed to to the internal audit team members of a known CA firm, trainers and students of the few CA coaching institutes and among the employees working in the audit team of Deloitte, Hyderabad. Majority of the information and data was collected through the audience. The secondary information was collected through the website of a CA firm, journals, books and other relevant sources online.

3. INTERNAL CONTROL & INTERNAL AUDIT  Internal Control  Internal Audit  Standards on Internal Audit 4. PROJECT PROFILE  Objectives  Research Methodology 5. LEARNINGS & OBSERVATIONS  Learnings        Audit Scope & Coverage Organisation Structure of IA Department Audit planning & process Audit approach & methodology Life cycle of an audit Performance evaluation Quality systems