It Auditing Essay

- The successor should review previous audits in order to whether problems exist that may impact the successor’s acceptance of the audit. Also, the successor should review previous audits in order to have confidence in the current/past figures presented on the client’s financial

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

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.

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

Assuming that the end result is an unqualified audit report, outline the primary responsibilities of the audit firm after it issues the report in question.

978-0-. 912503-35-6) identify issues and to research solutions. 6. Understand the . Integrated Audit Practice Case, 4th

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

Quality Objectives - The quality objectives define measurable goals relative to the company's quality management system. Requirements on the quality objectives are in ISO 9001:2008 section 5.4.1.

c. That being said, it was auditors and accountants who discovered the illegal actions which were occouring in each of these respective scandals.

3. Research auditing standards and describe the typical procedures that an auditor would perform in auditing a fair value estimate such as the

documentation and changed audit trails. This problem can be used to lead into a discussion of

d. “The auditor's reliance on substantive tests to achieve an audit objective related to a particular assertion may be derived from tests of details, from analytical procedures, or from a combination of both. The decision about which procedure or procedures to use to achieve a particular audit objective is based on the auditor's judgment on the expected effectiveness and efficiency of the available procedures. For significant risks of material misstatement, it is unlikely that audit evidence obtained from substantive analytical procedures alone will be sufficient (PCAOB, AS 2305.09).”

B) I think the auditors should have equal responsibility for detecting material misstatements due to error and fraud. It’s their job to make sure the financial statements are as accurate as possible. Although it may be hard to check all the information from a company it’s the responsibility of the auditor to sign off that everything is in check.

Under the Sarbanes-Oxley Act of 2002, reports on internal control are required. Did the company’s management acknowledge its responsibility for establishing and

C. Identify and briefly describe the three steps involved in the process of managing organizational