Lifestyle Auditing

Political corruption is a major problem in the US today. It involves almost all levels of government and affects people from all walks of life. Public office is a noble post and citizens put their trust in government officials to carry out their constitutional duties for the benefit of the citizenry. The problem comes in where both elected and unelected officials perform their duties with the goal of personal gain in full view of the law. The ethical and moral wrongs of corruption are unjustifiable in any context.

The auditor must assess the transactions for how much of a risk factor is involved. When reviewing these transactions, auditor must be able to review the internal controls of the company’s accounting personnel. The segregation of duties is associated with the safeguarding of an organization 's assets and the topic known as internal control. An example of the segregation of duties would be a company 's requirement that the bank statement for its checking

It should also investigate if the employees in the banks are corrupt or have relation with the cartels.

Once a pattern of corruption has been noticed it is easy to see that often times, the wealth was earned through corrupt practices. “Officials accept [bribes] for lavish needs and to make their living decent.” (Power of Corruption). Not only does corruption ruin the lives of others, it ruins the morality and ethical code of those who are not corrupt. This pattern of the corrupt corrupting others is ruining the faith of the public in wealthy corporations and

Gramling, A.A, Johnstone, K.M, Rittenberg, L.E. (2008). Auditing. (7th Ed.). Mason, OH: South-Western, Cengage Learning.

The Corruption Continuum is used to illustrate the transition from good cop to bad cop. Once an officer makes the decision to accept gratuities and or gifts it puts them on the “slippery slope” of corruption. If an officer chooses to compromise his or her integrity, it is near impossible for the officer to regain their honor. Many scholars and practitioners become

the actions of the corrupt officers were wrong and unethical. They weighed the positive results

This research paper is being submitted on March 10, 2013, for Tiffany Krogman, A340/ACG3085 Section 03, Advanced Auditing Concepts & Standards.

In the world today, corruption and integrity are widespread issues that plaque many countries around the world. Many countries have to face the possibility of government officials misusing their governmental powers for other purposes. “What constitutes illegal corruption may differ depending on the country or jurisdiction. Certain political practices may be legal in one place and illegal in another. In some countries, government officials have wide or not well defined powers. The line between legal and illegal can be very difficult to draw.” (Political corruption-Wikipedia, the free encyclopedia)

Public corruption involves a breach of public trust and/or abuse of position by federal, state, or local officials and their private sector accomplices. By broad definition, a government official, whether elected, appointed or hired, may violate federal law when he/she asks for, demands, solicits, accepts, or agrees to receive anything of value in return for being influenced in their performance of their official duties( Myint, 2006). The majority of public corruption cases fall into one of five categories: legislative, judicial, regulatory, contractual, and law

Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and Assurance Services (11th Ed.). Prentice Hall, Upper Saddle River, NJ: Pearson Prestice

The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation and criticisms of its theoretical foundation, the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the nature, timing, and extent of audit procedures (especially substantive procedures) in audits of financial statements. The audit risk model provides a conceptual framework for the risk assessment standards.

Corruption is clearly everywhere around us with many forms and is a world-wide crisis. A day doesn’t go by that there isn’t a report in the media about some form of corruption by someone famous or internationally known, a Politian or an average every day citizen just perhaps looking for attention. Like a soap opera you’ve missed keeping up on for months, you can almost always turn the TV on and pick up right where you left off. My awareness of the most common form of corruption happens between the police and

Johnny being a certified public agent (CPA) can rationalize his behaviour by performing according to the act APES 110. In the above scenario, Johnny tried to mislead the Public Company Accounting Oversight Board (PACOB) under the pressure of his manager by manipulating the financial information and confidential information of the client prior to the submission of report to PACB. The significance of any of the unethical and dishonest behaviour can be evaluated and safeguarded by consulting with superiors within the employing organisation, professional bodies, up-to-date with internal and external audit procedures and education on ethical issues. Johnny should always act according to the fundamental principles of APES 110 and should always perform

The concept of materiality provides a topic for continuing educational discussion that many firms across the country find essential to the development of their audit staff. Measuring and using materiality to obtain desired results during an audit becomes the responsibility of the staff member of a CPA firm. Partners and managers of a firm typically allow the staff member to use his/her judgment when applying this concept during the fieldwork of an audit. The overall success of an audit relies at least in part on the materiality concept; therefore, staff members’ continuing education on the concept becomes important and necessary. This report will define the term materiality, determine how to measure materiality, and