Auditing Essay

SUMMATIVE ASSIGNMENT Z0956648 Role of auditors in rebuilding public trust Introduction There was once a group of rebel English barons that went to war to resolve their grievances with King John’s monarchy and the cause of the dispute was a loss of trust in John’s leadership and England’s civic institutions. The resultant Magna Carta peace treaty was hardly a blueprint for a democratic society (PwC). However, it did help a little to enhance the rights and freedoms that would later be incorporated

payments – in the company’s quarterly filings for the first, second and third quarters. 4. In my opinion CBN failed to perform sufficient audit procedures in connection with the issuance of these audit reports in violation of PCAOB rules and auditing standards, and failed to appropriately supervise the work of audit assistants. They failure to ensure that sufficient audit procedures were performed on the audits resulted from a poor system of quality control, including inappropriate reliance on

Knowledge about risks related to the company evaluated as part of the auditor 's client acceptance and retention evaluation; and the relative complexity of the company 's operations. ( Auditing Standard No. 9 //. (n.d.). 1. What steps will you take to review the company’s business transactions? Reviewing the trial balance for the entire year to see all transaction are accurately accounted for. 2. What would your plan be to utilize these

Describe what you believe is implied by the term “engagement risk.” What are the key factors likely considered by Deloitte and other audit firms when assessing engagement risk? How, if at all, are auditors’ professional responsibilities affected when a client proposes a higher than normal degree of engagement risk? I believe that the term “engagement risk” implies that inherent client-specific risks face an auditor throughout the course of an audit, thus creating a risk that the auditor will be

Summary I am in agreement with the facts that Carly presented in her case. I believe that Carly she did a good job on her case study and presented this case with most of the relevant facts. However, I did skim the case in order to develop a better understanding of a couple of the elements presented. I added those elements to my critique of this case. Questions and Answers 1. What factors likely contributed to the oversights made by Ernst & Young auditors during the 2004 AA Capital engagement? Identify

with effective communication in departments of a company such as auditing. Work schedules are a contributing element in creating communication barriers. Many groups in different departments experience real crisis. Group members schedule often ranges from few hours shift to a whole day shift. Splitting the group can help the groups working late to meet with group members working early to discuss, what is required to help the auditing office to work efficiently. Scheduling a convenient time is essential

information within the Firm or employing organisation.” Both administration and audit staff are directly required to handle this information. Administration is responsible for input of the data to the system. Auditing branch is accessing this data on need basis and only when they are directly auditing these clients. These departments are ‘in-house’ and very likely are being covered by confidentiality agreement signed by client and W&C. No information will be disclosed to third parties outside the

by the three E’s). The inherent difficulty for any public body is to balance effectiveness with efficiency and economy; the NAO must therefore take this into account when carrying out VFM audits, in order for the audits themselves to be of value. Auditing the effectiveness of a public organisation is a difficult task in itself, however. What does effectiveness entail, and how does one measure it? You could argue that the effectiveness of the police force could be measured by looking at the ratio of

External Audit and Non-Audit Services Introduction An external auditor carry out the audit work，according to particular rules or laws of the financial statement corporation, government agencies, other juridical entity, as well as the independent implementation of the audit commissioned. External audit is actually an important systematic inspection, which aim at false behavior within the enterprise and deceptive behavior. The advantage of external audit is to ensure the fairness and independence of

The main issue in this case is that in the standard audit reports that go with the financial statements, “the auditor’s responsibility for detecting fraud is not discussed (Mancino, 1997)”. This is occurring because “auditors do not examine every transaction that happens or event and that would mean there is no guarantee that all material misstatements, whether caused by error or fraud could be detected (Mancino, 1997)”. There should be a spot on the audit report that states the auditor’s roles