Tax Auditor

Case study of “Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues” Judgment Framework and Professional Judgment Discuss the importance of “judgment framing.” “Judgment framing” occurs early in the judgment process. The definition of framing follows: Frames are mental structures that we use, usually subconsciously, to simplify, organize, and guide our understanding of a situation. They shape our perspectives and determine the information that we will see as relevant or irrelevant

presentation or disclosure mandatory for the element to be in agreement with the pertinent financial reporting framework (Moroney, Campbell, & Hamilton, 2014). Material misstatements can occur due to either fraud or error (ACCA Global, 2014). The auditor ought to ascertain and evaluate the risks of material misstatement right from the financial statement level and the assertion or declaration level (Arens, Elder, & Beasley, 2013). The process involves first gaining an understanding of the organization

Two of the most infamous audit firm failures exhibited similar characteristics. Audit firms Laventhol & Horwath (L&H) and Arthur Andersen (Andersen) were both conflicted with the audit clients. L&H performed financial practices for its client, PTL Club, in the form of check preparation from a secret payroll account. On the other hand, Andersen was subject to the self-review threat, when it performed significant and high-valued consulting engagements for its client, Enron, while at the same time,

1. As it is commonly held that the Judiciary is the last hope of the common man, so is the Auditor the main thrust of the investor. There is however expectation gaps when professional services are rendered. This is either created by wrong perception of the role of the professionals by the public or poor rendering of services by professionals, which creates room for erosion of trust or criticisms. With the advent of industrial revolutions in the UK towards the end of the 19th century, Auditing grew

internal controls. Another reason to keep some of the nonaudit services is because over time it would diminish the accounting firms overall technical expertise and cause the audits to become less effective. The companies are allowed to retain their auditor to perform non-audit services

is it important for external auditor to be independent? Throughout the years, banks, shareholders, possible investors and creditors always relied on the financial statements produced by a company. Since the management of a company is producing these documents it has been assumed that the managers may act dishonestly so that their performance looks better. To monitor the company’s performance better the directors along with the shareholders employ external auditors to check all these financial

was responsible for managing and inventory control, among other very important duties. Diane Bullock was hired in 2003, to replace the previous CFO. Both Bullock and King were being accused of what? by the external auditors, Deloitte & Touche, for not disclosing an 8 million pre-tax inventory valuation error. Financial reporting Problem The financial reporting problem at Molex was that, “the profit on inventory sales that the company made between its

between earnings smoothing or earnings management and fraudulent reporting? The earnings smoothing is for management who try to maximize the wealth of company and reduce the risk of the firm. It can also improve the value of company and reduce the tax in order to make the financial statement more reliable. Management can keep an illusion of consistent increasing, borrow money from next quarter, and load up expense to reduce the variance of periodic profit to some extent allowed by accounting principles

PROFESSIONAL MISCONDUCT By: Mrs. Surbhi Bansal M.Com., FCA Sec.2 (2): Members deemed to be in practice: If he i) Engages himself in practice of accountancy, or (ii) Offers to perform audit related services or holds himself out to the public as an accountant, or (iii) Renders professional service or assistance in Matters of accountant interest etc., or, (iv) Renders such other services which as per opinion of the council, to be rendered by C.A. in practice. (Mgt

external auditors to be independent? Relate your answer to the primary role of external auditors? By Zachariah Godfrey-Plews This essay has asked me to look at the importance of external auditors and why it is vital for them to remain independent. I will try and look at the many ways of the advantages of independent auditing from different perspectives for example the company itself, the general public and the state. I think it is important to first define what an audit and an external auditor to be