Auditing Case

The factor that plays the greatest role in determining auditor independence is independence in mind. Auditors may or may not appear to be independent, but if the auditor is truly independent in mind, then the auditor can remain objective and unbiased. The profession should consider tightening the Code of Professional Conduct to address the issue of an audit team member knowing a close friend that holds any position at the audit client. If this scenario arises, the firm can still audit the client, but the audit member with the close relationship won’t be able to be on the audit team.

With different industry definitions and viewpoints, fraud can be a tough issue for audit committee members to grasp for oversight purposes. The legal obligations of audit committee members have intensified because their standard duty of care and loyalty to the entity has increased in light of management fraud activities.

Auditing often emphasize the independence of auditors, However, it is not easy to balance the profitability and independence. KPMG has served as Well’s auditor for more than 87 years, the employment and employment relationship bring a little challenges to meet the independence requirements.

2 Managing fraud risk: The audit committee perspective Fraud in a fi nancial statement audit

John Ross, who had been a manager with a large CPA firm, was quickly hired to replace Wagner. Although the change in Datasave 's chief financial officer caused some disruption, the audit was completed on a timely basis.   As the last step in the audit process, you have prepared the representation letter for signing. You wanted the letter to be signed by William Cox, the president; Robert Star, the controller; and Wagner, who occasionally came to the company 's offices to resolve matters regarding his past compensation. The signatures of Cox and Star were obtained, and you approached Wagner for his signature. In response to your request, Wagner replied, “I no longer am employed with this crazy company. Why should I take any responsibility for the financial statements?” Despite your attempts to persuade him, Wagner refused to sign the letter. Wagner also refused to discuss the reasons for his resignation, other than to say the reasons were personal.   When you discussed the problem of Wagner 's refusal to sign with Cox, he indicated that there was no problem because Ross would sign the letter. You see this as a possible solution, but you are aware that Ross knows very little about the financial statements for the year under audit. Also, you are still somewhat concerned about the reasons for Wagner 's resignation.Required: a. Describe fully the alternatives that are available to you in this situation.Making

According to the Public Company Accounting Oversight Board (PCAOB), The primary objective and responsibilities of auditor is to express an opinion on the fairness with which all financial statement including all of its (material aspects, financial position, the result of the company operation and its overall level of cash flows) AU Suction 110. Thus, what this means is that auditor must be fully independent and must be fully able and willing to apply professional judgment as it relates to the audit engagement under consideration.

Harold is an exceptional OA and a great team leader. His quiet and calming nature is an asset to our team. He is personable and we are all very comfortable going to him for any reason and to many of us he is our ‘go to guy’. Harold’s excellent problem solving skills are truly put to the test with our team. Moreover, he goes above and beyond to lend a helping hand to his peers, management, and clients. He coaches with positive intent, ensuring that we know that the feedback is sincere; he truly wants us to be better. Harold is a positive contributor in the development, education and morale of our team.

Electronically maintain BMV computer servers are handled by an outside agency called Indiana Office of Technology (IOT). We currently do not have a contract with the right to audit and there is significant pressure not to audit other agencies as it has been indicated outside our jurisdiction. A meeting was held to determine if any of the process was handled by the BMV which would create internal risk or if all risks belong to IOT thus are not auditable by the BMV internal audit. It was determined that all the risks belong to IOT. The primary function of IOT is the set up servers and provide maintenance to those servers (updates to windows and etc.). Currently, over 300 servers are provided to the BMV by IOT (many of these are virtual servers).

hi~ 1985 Enron had assets along the three major stages of the supply chain of nat

An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used for the application for a loan; the auditor did not know the identity of the bank that would eventually give the loan. Under the foreseeable third party approach the auditor is generally liable to the bank which subsequently grants the loan for:

Xerox Corporation is an American multinational archive administration company. It delivers and offers a scope of shading and highly contrasting printers, multifunction frameworks, scanners, advanced generation printing presses, and related counseling administrations and supplies.

Internal auditors cannot effectively provide an analysis on the company’s internal dealings as they are part of the company. External auditors, however, can observe these processes from the outside and then determine where the funds of the company and whether the dealings adhere to the regulations. Using external auditors in a company prevents conflict of interest from happening. Conflict of interest is a situation where an individual or organization has multiple interests and of those multiple interests, one could possible corrupt the motivation for an act on the other when the auditor has any kind of beneficial interest in their client’s performance. In other circumstances, there is also the threat of familiarity where auditors become

Assurance services improving information 's for informed decision making. It provided by certified public accountants (CPAs) or another external auditor.

Not only should the auditor be independent, but he must be perceived to be independent.

The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company in the world. In order to maintain and increase