Auditing

Independence according the Sarbanes-Oxley Act (SOX, 2002) To protect investors from the possibility of fraudulent accounting activities by corporations, the Sarbanes-Oxley Act of 2002 (SOX) was passed by U.S. Congress in 2002. Under SOX, TITLE II—AUDITOR INDEPENDENCE as a independence standard to guide external auditors. Section 201 lists nine non-audit services those would impair registered public accounting firm’s independence. Under section 201, these nine non-audit services are prohibited. Moreover

triangulation being used. For clarifying auditing process visualization of auditing model in Figure 1 is given. Figure 1 Ethics Audit Model This model mainly separated into four levels: leadership, system, evaluation and manage. Additionally, here are three main data sources as input to auditing process: documents observation, working tour in company and interviews. All data will be collected, categorized, analyzed and assessed through risk assessment matrix. Auditing committee gives feedback to management

operates a greater subsidiary in Mexico and your audit report will be relied upon by users of the principal 's bursal statements in Mexico, you need a working notice of international professional standards. You should know approximately the accounting, auditing, ethics and temper control standards that affect the engagement and your accounting practice. If your customer has operations outside the U.S., you should savvy the professional standards that devote to audits accomplish in those countries. To

audits that may possibly be used on an Accounting Information System (AIS). Knowing the different types of audits and where they are used will help a company be ready for an audit and make the process much smoother. There are some circumstances where auditing through a computer is not always beneficial. Auditors want to make sure they are completing their audits fully and appropriately to the best of their abilities.

(Kieso, Weygandt, Warfield, 2004) and establishing auditing standards. Two of the influences applicable to the audit of Smackey Dog Foods, Inc. are auditor independence and the effectiveness of internal controls. Auditor independence is important since the financial statement users rely on the auditor’s unbiased opinion. According to Lindberg and Beck’s abstract (2002), “Auditor independence is often referred to as the cornerstone of the auditing profession, since it is the foundation for the public’s

Case 8.11 Societe Generale 1) This was the hardest question I delt with in this case, so I went to the basics: Accounting and Auditing in France. I came across the Supreme Council of the Institute of Chartered Accountants(7) and the National Society of Auditors (CNCC). (8) After researching this I simply did a search on the individual websites for “recent developments”, and nothing major came up in regards to the individual organizations. However, on expert-comptables.fr, I came across a press

Case 16-5 Skeptical Lens Memorandum To: Professor John Li Department of Economics Hunter College From: Yuen Mei Hau Re: Skeptical Lens Date: November 3, 2017 Summary: The objective of this article is to clarify the significance of professional skepticism as an essential part of the auditor’s mindset, and to consider the reasons why approaching an audit with an attitude of professional skepticism is becoming increasingly

3. Alternative available to audit the issue or issues discussed in # 2 above indicating the authoritative basis. PCAOB Auditing Standard No. 12 Paragraph 47: "In applying analytical procedures as risk assessment procedures, the auditor should perform analytical procedures relating to revenue with the objective of identifying unusual or unexpected relationships involving

But because WorldCom had such a poor control environment, the company would require more testing for an audit. This shows that the board did not exercise oversight responsibilities over financial reporting or internal controls. According to PCAOB Auditing Standard No. 5 paragraphs 26 & 27, the top-side adjusting journal entries are when the executives record the entries, or when the accountants are asked by the executives to record the entries. A valid use of top-side journal entries is to allocate

Therefore, SEC has great influence over the audit of Smackey Dog Foods. Inc. Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client? Solution: Initial auditing planning involves 4 things: (1) The