Auditing & Assurance Services

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

With the preparations and overview of the financial information provided by the company, Ace Inc., the following items are disclosed in the notes as per under advice from the auditor.

The requirements in these newly-issued risk standards represent significant changes to the standards governing audits of financial statements. They enable the auditors to focus more clearly on areas where there is a greater risk of misstatement of the financial statements. The belief is that these risk standards will increase audit quality. This is as a result of better risk assessments through a more detailed understanding of the entity and its environment, including internal control, and improved design and performance of audit procedures to respond to assessed risks of material misstatements. The improved linkage of audit procedures and assessed risks is expected to result in a greater concentration of audit effort on areas where there is a greater risk of material misstatements.

Occurrence. Obtain evidence that the loan transaction and securities purchase transactions actually took place during the year under audit.

6. The audited profit and loss accounts of the company, the auditors' report and the directors' report. These reports are required to be sent to shareholders not less than 14 days before the general meetings of the company at which the accounts are to be presented. These documents provide useful information relating to the financial affairs of the company.

1.3 Has the Entity disclosed the following, if the information is not disclosed elsewhere in the information published with the financial statements:

* To recognise separately, at the acquisition date, the acquiree’s identifiable assets, liabilities and contingent liabilities.

Section II offers information about market for registrant’s common equity and related stockholders matters, financial data, management analysis of financial condition and results of operations, quantity and quality disclosures regarding market risk, financial statements, and outcome of changes due to disagreements with accountants regarding accounting and financial disclosures and Hewlett-Packard’s control and procedures (Hewlett, 2007).

1.2 Explain the various business purposes for which the following financial information is required • Income statement ( profit and loss account) • Forecast of cash flow (cashflow statement) • Statement of financial position (balance sheet) (NB explain the statements relevant to your organisation) 1.3 Give an overview of the organisation’s business and its critical external relationships with stakeholders 1.4 Explain how the accounting systems are affected by the organisational structure, systems, procedures, and business transactions. 1.5 Explain the effect on users of changes to accounting systems caused by • External regulations • Organisational policies and procedures

2. Identify the procedures and sources of information auditors can use to obtain knowledge of a client’s business and industry.

In drawing up accounting statements, whether they are external "financial accounts" or internally-focused "management accounts", a clear objective has to be that the accounts fairly reflect the true "substance" of the business and the results of its operation.

· Key users of the entity’s financial statements have direct access to the entity’s management.

Advance in technology, globalization and internationalization are affecting the method organizations are conducting businesses in the contemporary business environment. Changes in the method that organizations employ in conducting business also increase the danger of fraudulent financial reporting. Financial failures and high profile scandals within business environment between 2000 and 2002 have necessitated market regulators to call for scrutiny in the corporate financial reporting in the United States. The occurrence of fraudulent practices within business environment made the stakeholders to call for risk management, governance as well as increase in the scrutiny and quality in auditing and assurance. Following the WorldCom and Euron's fraud scandals that eroded the confidence of investors in the United States, the government focuses on the impact of external auditing practice on the quality of financial reporting. In 2001, Euron Corporation filed for bankruptcy with $62 billion worth of assets. The downfall of Euron made thousands of employees to lose their jobs making thousands of shareholders to lose their money. In 2002, WorldCom also filed for bankruptcy with $100 billion worth asset making Euron case appear small in comparison. High profile scandals that swept across the United States between 2001 and 2002 have shown that quality-auditing practice is very critical for the quality accounting and financial reporting.

Statements such as Profit & Lost account (Income statement) and Balance Sheet will be sent to interested parties who concern about company’s affair.

- The balance sheets and profit and loss accounts are properly prepared by the licensed housing developer and to give a true and fair