Auditing

Internal Control Risks Identified in Apollo Shoes Assessing control risk is the process of evaluating the design and operating effectiveness of a company’s internal controls as to how it prevents or detects material misstatements in the financial statement assertions of management (Hayes, Dassen, Schilder, & Wallage, 2005). The conclusion reached as a result of assessing control risk is referred to as the assessed level of control risk. When assessing controls the auditor looks for weaknesses

It is important to ensure the new employee receives training before being aloud to input data into the systems. The new employee will require a combination of side by side training where they are able to watch, listen and learn. The new employee will also need to know where they can access this information if they get lost in the process, in some cases this may be found on the company intranet under user guides. These user guides usually show the process using a combination of instructions and

Accounting and Finance Master Thesis No. 2002:53 Financial Statement Fraud - Recognition of Revenue and the Auditor’s Responsibility for Detecting Financial Statement Fraud - Tiina Intal and Linh Thuy Do Graduate Business School School of Economics and Commercial Law Göteborg University ISSN 1403-851X Printed by Elanders Novum Abstract Financial reporting frauds and earnings manipulation have attracted high profile attention recently. There have been several cases by businesses

transactions that occur after the balance sheet date, but before the financial statements are issued or available to be issued(FASB, 2009). Auditors must evaluate subsequent events at the end of the accounting period and discuss material items with the auditing team. There are two types of subsequent events, recognized and non-recognized(FASB, 2008). Recognized subsequent events are those that provide additional evidence about the conditions that existed on the balance sheet date. This type includes events

Auditing Group Assignment ATIF MANZOOR ASIFUL ISLAM PUSPITA GHOSH MEHADI HASAN Table of Contents Overview 3 Xerox as an organization 3 Xerox accounting scandal 3 Impact of accounting scandal 5 The violations 5 Effect of accounting scandal on share price and company overall 6 Role of auditor in Xerox scandal 6 Effect of auditor’s involvement impact the situation 6 Recent developments about the case 7 Lessons learned 7 References 8 Auditing Group Assignment Overview

Crazy Eddie Case Questions 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie’s financial statements that suggested the firm posed a higher-than-normal level of audit risk. There were several red flags in Crazy Eddie’s financial statements. The company’s higher-than-normal level of audit risk can be determined by completing a ratio analysis of the financial statements. An analysis of key ratios

paid to the auditing firm. Also, a public accounting firm may provide these non-audit services along with audit services if it is pre-approved by the audit committee of the public company. The audit committee will disclose to investors in periodic reports its decision to approve the performance of non-audit services and audit services by the same accounting firm. This requirement to disclose to investors is likely to inhibit auditing committees from approving the performance of auditing and non-auditing

laws and regulations on internal control related to financial reporting in a number of jurisdictions. In the U.S. these regulations are specifically established by Sections 404 and 302 of the Sarbanes-Oxley Act. Guidance on auditing these controls is specified in PCAOB Auditing Standard No. 5 and SEC guidance, further discussed in SOX 404 top-down risk assessment. To provide reasonable assurance that internal controls involved in the financial reporting process are effective, they are tested by

Audit Independence Assessment Item 02 –Q1 Author- I U Amarasiriwardhana Abstract This report discusses importance of auditor independence nowadays and how statutory, regulatory & code of ethics has been involved in enhancing it and how non-audit services impair the independence of auditors. Table of contents 1.0 Introduction 2.0 Why Independence Important for auditors 3.0 How enhanced auditors independence 4.0 Non-audit services provided by the auditor to their audit client. 5.0 What are the arrangements

federal law that has generated much controversy, and involved the response to the financial scandals of some large corporations such as Enron, Tyco International, WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate and covers and sets new performance standards for boards of