Essay On Green Accounting

7. List some of the risk areas that can be identified through the auditing process.

Moreover, the auditor should preform test for effectiveness of internal controls. He may interview management by asking questions on the process of the transactions and operational activities. He may discuss with management the process of some transactions from beginning to end and then test it by using sample testing. Also he/she should make sure that there is proper control of activities; policies and procedures for adequate segregation of duties are met.

Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm.

The environmental protection agency has been stepping up its mandate of ensuring safer and better environment for not only the business operators, buts also the society as a whole. In order to achieve this goal of environmental protection, there has been the creation of environmental protection agency that has ensured that all the businesses, irrespective of their size and type, strive to ensure that the environment is protected for the benefit of current and future generations.

3. The third stage is Fieldwork. During this stage, the auditor should observe firsthand how the company operates. They need to check out all the areas that are less effective to the welfare of the company’s finances. In the case of Smackey, the auditor would note about all the returned dog food from their specialty line that is just sitting on the loading dock. They also noticed that the dog food is being thrown out and then taken back and loaded into Henry’s trunk (possible misappropriation).

a. Describe the purpose of analytical procedures performed in the planning stage of the audit.

There are four things that an auditor needs to assess prior to performing an audit:

To begin the review process there should be some knowledge of the processes and procedures in the accounting department. It may be a good idea to observe all of the procedures that go into creating the financial statements. Look for any weaknesses or questionable practices and create a list of questions. Then in the next phase the auditor can conduct interviews to get a better understanding of the accounting staff. Observations and interviews can set the groundwork and provide information into any nuances or potential fraud or abuse. Any material weaknesses found can be further explored.

Additionally, the study found that hotels with a non-financial reporting control system were more likely to adopt an environmental policy. In 1996, when this article was published, green policies were considered stratagems instead of bonafide, widespread business strategies for all hotels to take into consideration to participate in environmentally-responsible business practices. The author concludes that until environmental concerns become strategic issues added into the control system with rewards, the response will remain the same; green policies and practices will be considered stratagems.

1. Why is audit planning so important?  What is the most important step in audit planning?  Why is this step so important?

|Develop Audit programs for the substantive audit procedures for the balance sheet and income statement |35 |

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

3. Discuss how the auditing procedure should have been modified to address the high-risk financial statement items.

• Directing appropriate attention to the different areas of the audit such as assessing materiality, so that when the detailed audit plan is prepared, audit procedures can be directed towards the material amounts.

An organization is an open system; therefore it interacts with its environment. To manage the relationship with the environment, a large part of strategic planning is concerned. The environmental factors can be divided to 2 main categories, which is MACRO and MICRO .Macro environmental factors seriously affect an organization business practice, profitability and future progress. It can