Hong Kong Establishing an Audit Committee for Companies

* From the e-Activity, choose one (1) of the eight (8) steps in the Clarified Auditing Standards–Learning and Implementation Plan. Based on the step you have chosen, analyze support for the action plan proposed, and make at least two (2) recommendations that would improve support of the action plan.

documentation, materiality and risk, internal control, statistical tools, and the overall audit plan and program.

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

Compare the primary auditor objectives in auditing historical financial statements to auditing internal controls over financial reporting. Identify at least two (2) objectives that are the most significant in reducing the risk of reporting errors or misstatements in financial statements. Provide a rationale for your response.

The purpose of this memo is to document the planning of the financial statement audit

The Committee may call upon the Company’s staff members responsible for preparing the financial statements, carrying out internal control procedures, conducting internal audits, applying risk management or cash management procedures, investigating tax or legal matters, as well as the Statutory Auditors, to appear before it on any number of occasions to address issues in detail, without requiring the presence of the Chairman of the Board, the Chief Executive Officer, or Group Managing Director(s) of LVMH. These meetings may also take place in the absence of those responsible for the accounting and financial

The purpose of this paper is to discuss the SEC’s influence on auditing a private company and the essential activities involved in the initial planning of an audit. Next the discussion will delve into four stages of the audit and tasks performed by the auditors as well as internal control findings and various aspects of the audit.

The only aspect of an audit report that I was aware of is the inclusion of the four financial statements – statement of cash flows, balance sheet, income statement, and statement of retained earnings. It is the auditor’s job to express an opinion on the financial statements based on the review I did not know all of the detail that a report entails. I originally thought only the statements were given with no explanation. However, it is comprised of notes to financial statements to supplement the analysis, which includes endowment funds summary, income tax exemption information, recommendations, and the independent auditor’s report which outlines management’s responsibility as well as the auditors, their opinion, and report on summarized comparative

The objectives an audit team hopes to accomplish by preparing a proper set of audit workpapers is to facilitate the planning, performance, supervision of the engagement, and provide evidence supporting significant conclusions by the auditor in accordance with the PCAOB. A record of the evidence, samples tested and the conclusions are presented to supervisors and partners for review

The Audit Committee is comprised of the following five members from the Board; F. Duane Ackerman, Ari Bousbib, J. Frank Brown, Karen L. Katen, and Mark Vadon. This group is tasked with assisting the Board with the oversight of The Home Depot’s financial statements, ensuring that they are in compliance with legal and regulatory requirements. They also review and monitor the Company’s Compliance program, making changes when appropriate to ensure that the Company remains compliant. This committee must be comprised of three or more independent directors from the Board and they cannot receive any compensation other than directors’ fees from Home Depot. A requirement for this committee is to have a basic understanding of

The purpose of an audit is to enhance of confidence in the financial statements. An auditors opinion validates this purpose.

The audit committee is responsible for the following. It is responsible for reviewing the financial statements, for reviewing the company's compliance and control systems, for monitoring the effectiveness of the internal audit function, assessing the independence and objectivity of the external auditors, and ensuring the employees have the opportunity to raise concerns about matters of financial reporting. The audit committee supports the Board. Ultimately, because the audit committee is comprised of members of the Board, they are elected by the shareholders. Should the shareholders decide, they can replace these members at the annual meetings.

The audit committee’s responsibility was to look over the accounting and financial reporting process as well as the financial statement audits; appoint, compensate and oversee the external auditor; and to ensure that the company has a whistleblower program. (p. 52) At first glance the committee could notice that something was not right with the company’s financial records. But nothing was done and nothing was said.

Strategic objectives- pertain to value creation management makes on behalf of shareholders. Longterm strategies look

Ensure the security of shareholders rights with respect to secure ownership of their shares, their voting rights, ensuring shareholders’ participation in decisions relating to the sale or changes in corporate assets, and ensure shareholders’ right to