whistleblower hotline process in place. Instead, Cynthia took on significant risks when she stepped over Scott Sullivan’s head and notified the audit committee chairman of her findings. Conduct an Internet search to locate a copy of the Sarbanes-Oxley Act of 2002. Summarize the requirements of Section 301.4 of the Act. The section 301.4 of the Sarbanes-Oxley Act of 2002 set requirements on procedures that audit committees are required to establish about complaints. Those procedures include how they receive
As noted by Meredith and Mantel (2012) “The audit life cycle includes audit initiation, project baseline definition, establishing a database, preliminary project analysis, report preparation, and termination” (p. 539). We are going to define what happens in each stage of the audit life cycle: 1. Project audit initiation: This step defines the purpose and the scope of the audit, determines the proper audit methodology to use. 2. Project baseline definition: This step will determine which areas of the
showing bias towards. The SEC has written principles that show independence is impaired when an auditor acts as management or an employer of the audit client or if the auditor is in any position of advocacy for the company. The AICPA also states that there are safeguards in place to avoid independence problems. Some that prevent potential bias are audit partner rotations of every 5 years, not allowing nonaudit work to be done by the external auditor, and rotation of senior engagement personnel. Overall
Worksheet for You Decide Name ____________ Course Code _________ Grade ___/ Date__/__/__ Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: Smackey Dog Foods is not a publicly traded company, so it’s not required to follow SEC regulations. However, the auditors are required to follow audit standards. (AICPA Code of Professional Conduct, Sarbanes-Oxley Act, and SEC rules) Therefore, SEC has great influence over the audit of Smackey
o i solutions limited Innovation Audit See the gaps in your innovation and develop plans for new products, services, processes and cost savings. Below is a summary of the Audit we recommend and can conduct. The full Audit varies dependent upon the organisation. Key Issues There are hard and soft factors that will determine how innovative an organisation is. Those key factors: • CEO and Board Commitment • A Learning Organisation ie being open, adaptive and forward thinking • A culture that encourages
Week 2 Discussion Questions Chapters 6 & 8 1. Why is audit planning so important? What is the most important step in audit planning? Why is this step so important? Posted on wed 5/8/2013 Responded to one classmates on 5/08/2013 Auditing planning is important because it helps the auditor determine his/her approach to the audit. There are two considerations that affect the approach: 1). Sufficient appropriate evidence must be accumulated to meet the auditor’s professional
Reference Messier: Ch 1 2 CILOs and TLAs CILOs 1 Describe the auditing profession, the regulatory, legal and reporting framework of auditing. Recognize the basic principles, objectives and ethical requirements of audit and assurance services. Identify the audit process from client acceptance, design of audit procedures and express an appropriate audit conclusion based on the audit evidence obtained. Assess risks and threats to an audit of financial statements through analytical and critical
ACCT3708 Week 3 Tutorial Q1. What is the link between audit risk and engagement risk? How does the audit risk model allow the auditor to deal with these risks in the most cost effective manner? Audit risk is the risk that the auditor gives the wrong opinion – this can either be stating errors when there are none or when there are errors stating that there are none. This risk cannot be eliminated as auditors can only provide a reasonable assurance and not absolute, but instead this can only be managed
The Apple Supplier Code of Conduct describes in detail the obligation of each supplier to provide safe working conditions, treat all employee decently, and practice environmentally responsible methods. Therefore, Apple 's supplier code of conduct has created substantial advancements since; the employee work conditions in Apple Chinese factory news released to the public of many violation human rights. The Apple corporations have made improvements to the Supplier to make the Apple suppliers accountable
How would you have designed Bernie Madoff‘s compliance department? How should the compliance department receive and respond to allegations? Bernie Madoff‘s compliance department should provide a variety of channels for employees to submit questions and to report suspected violations. These system should be easy to access, simple to use, maintaining confidentiality, publicize throughout the organization, and accommodating of employees’ needs. Examples of the reporting system are a telephone helpline