Evaluation Of An Sec 's Voluntary Filing Program

For both of those years, E&Y's opinions stated that E&Y conducted its audit in accordance with Generally Accepted Accounting Standards (GAAS) and that, in the opinion of E&Y, the consolidated financial statements presented fairly, in all material respects, the financial position of CBI. During the 1992 and 1993 audits E&Y had discovered numerous disbursements made by CBI in the first few weeks of the next fiscal year that were unrecorded liabilities. These disbursements included payments to the company’s vendors that had been labeled as “advances” in the company’s accounting records. The explanation that was given by the CBI’s personnel was that “when CBI is at its credit limit with a large vendor, the vendor may hold an order until they receive an advance, CBI then applies the advance to the existing A/P balance”. E&Y auditors readily accepted the explanation and chose not to record the items as unrecorded liabilities. In fact, the financial statements prepared by E&Y did not fairly present CBI's financial position because E&Y did not detect certain unrecorded liabilities when it performed the audits. Although Ernst & Young auditors had discovered a lot of red flags, suspicious activities and behaviors, unrecorded liabilities they did not properly investigate those activities, they didn’t require CBI to prepare appropriate adjusting entries for them and as a result, failed to notify CBI’s board of directors about the existence of all these

The description of different types of business documents produced and their format to be followed are as follows:

Question Presented is to provide an advice to the client (Sam) on inclusion of the most favorable provisions of corporate documents provision under the following facts:

AS 3 goes on to state in paragraph A9 that “the documentation requirements in this standard should result in more effective and efficient oversight of registered public accounting firms and associated persons, thereby improving audit quality and enhancing investor confidence”.

To illustrate the linkage of management assertions to audit evidence in the context of auditing Notes Payable.

2. In addition to exhibits one and two, other financial info that the auditor might have obtained was one, the company’s

I suspect that most of us can view and appreciate most sports such as baseball, football, and basketball. What if you were to view a Cricket World Cup game? If you didn’t know the rules you probably would not have much fun. The same happens in business if you don’t understand its language – Accounting. What rules impact a business’ Accounting Information System? What types of compliance is required?

A company or organizations, which are not privately, own and do not disclose certain items in their financial statement, this will influence the judgment of the companies’ stakeholders’ ethical behavior and concerns. Companies that do not fully disclose all items possibly charged with fraud. Disclosure notes should be disclose on business statements’ with the correct amounts related to the increase or decrease of an account to present measure of quantities reflected.

Among the tools required for every business to survive and thrive, the ability to maintain a regular self-examination holds an indispensable place. The size of the business in question is almost of no consequence, only the potential complexity of the self-examination changes. A prime tool for such self-examinations is the family of related financial reporting that has become nearly universal in western businesses: the income statement, the balance sheet, and the statement of cash flows. This trio of reports enables management and owners to carefully examine the holdings and liabilities of their business so they may make

financial statements to comply with ASC 740-10 by completing the table that was provided and justify

There will be a number of documents that will need to be developed these will include;

The chief executive of the company was closely working with the vendors whose confirmations were vital in the auditing work and hence they could have submitted false confirmations. The auditing firm established a national risk management program for its clients and so national reviews were done to identify the high risk items in the financial statement. The vendor allowances were particularly high but they were not documented. As such, the auditors were supposed to demand for the documentations and compare them with the real figures. It is however noted that most of the documentations received were non-standard and this could have led to a different audit report given that vendor allowances were earlier identified as a high risk area. Inventory management was found to be poor especially in the allowances for inventory reserves. The audit firm was therefore obliged to carry out a thorough evaluation of the inventory reserves and determine whether it was reasonable. The valuation was also supposed to include all classes of inventory but for the case of the company, the evaluation excluded instances where no sales had been made. Hence, this evaluation could not accurately represent the position of the inventory reserve in the company. (Waters,2003)

3. Internal evidence is created, used, and retained within the client’s organization and without the help of outside parties for example; sales invoices duplicate copy, employees’ time reports, inventory reports, and purchase requisitions. On the other hand, external evidence originates outside the client’s organization for example; bank statement. This type of documents generally prepared in the ordinary course of business activities and form part of its records whether of accounting or non-accounting nature. Sometimes obtained directly from source such as bank, debtors, and creditors confirmations. External evidence and the internally generated evidence circulated externally are more reliable than the internal evidence.

When providing the distinction between the above charges the two stage process of legal characterization developed in Agnew must be applied by the English courts. The object of the first stage of the process is to ascertain the nature of the rights and obligations which the parties intended to grant each other in respect of the charged assets. Once these have been ascertained, the Court can then embark on the second stage of the process, which is one of categorization and designed to attribute the correct legal label to the package of rights and obligations. Lord Millett’s reasoning has been approved by the House of Lords in Re Spectrum in which emphasis was given to the freedom of the company to deal with the assets in the ordinary course of business rather than the two first criteria focusing on the nature of the secured assets.

Extensible Business Reporting Language, otherwise referred to as XBRL is a standard introduced, and is now used worldwide. “XBRL is based on Extensible Markup Language (XML), a widely accepted technological standard that defines a set of rules for encoding documents in a format that both humans and machines can read.” (Rashty, 2013). Its main purpose is to improve the way business reporting is presented to the public, by making reports more accurate and efficient. It is managed by a non for profit organization called XBRL International, and acts in the best interests of the public. XBRL is being adopted worldwide due to its digital accuracy, and effectiveness. It is mandatory in the United States and the United Kingdom, however in