External auditor

The audit world was transformed more than ten years ago due to a series of accounting scandals. This change took place when The Sarbanes–Oxley Act of 2002, otherwise known as SOX, was passed affecting not only business entities but also the firms that audit those companies (Thomas). One of the companies whose fraud was unmasked by the passage of SOX was HealthSouth Corporation. A company in the healthcare industry who had overstated about $2.7 billion dollars in earnings since 1996. The company’s

Ethical issues must be on the strategic agenda! Integrity management should be a priority not only because it is legally required, but because it is the right thing to do. This memorandum will analyze the proposed ethical policies such as strengthening auditors’ independence and strengthening audit committee to make reforms in existing corporate sector. Strengthening business ethics by improving audit quality One of the most important factors that plays a huge role in the success of a company – is ethics

company would want to hire a member of its external audit team to gain their knowledge and experience. If they have been auditing the company for a while, they know how the company works and ways to improve the internal audit process. Phar-Mor’s team was made up of former auditors, including one who had worked for Cooper on the audit. Those involved with the fraud said they were able to hide what they were doing for so long because they knew what the auditors were looking for in the audit. This can

analytical procedures. The analytical procedures forms an important part of the investment process in determining that the financial information subjected to audit is consistent with the auditor’s expectations. If performing analytical procedures, an auditor should develop an appropriate level of professional performance and investigation of abnormal findings. When the results of analytical procedures are consistent with the auditor’s expectations, the audit strategy might be adjusted to lower the level

which enables the employer to reduce the amount of tax and NIC payable, so will reflect any recovery of statutory payments. Appropriateness of Methods and Procedures Against Audit Requirements There are three main types of audit, internal audits, external

efficiently and effectively dismissed unfairly. 3) They have been unfavorably treated because of a protected attribute. Becoming an Auditor Types of Auditors and Audits When it comes to auditor there is no one specific type. There are external auditors, internal auditors, government auditors, forensic auditors, public auditors, and information technology auditors. Each of the auditors has

Audit is determined by a formal examination of a firm’s financial records, inspection of its accounts and other related documents by accountants called auditors. Basically, auditing is a controlled process which includes professional judgment and requires applying of analytical skills. Also, it involves appropriate forms of expertise and its approaching. A team with professional skills perform this task according to the relevant standards, for instance, International Standards on Auditing (ISAs)

the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. • The auditors of the Andersen firm. They didn’t do their responsibility and didn’t follow professional standard rule. • The high level of managers of the Andersen firm because they didn’t train their auditors well. They may ignore some important ethical principles and only pay attention how to

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

b) What concerns do you have about notifying the external auditors? The only concern I have about notifying the external auditors is that the caller might get in trouble too. Because as the controller of the firm, it is the callers job to make sure that fraudulent accounting practices do not occur. 4 a) Do you think situations like this