...Present Day Bangladesh Audit Objective
Today the business world has expanded its empire and captured the whole world. Without the growth of business the economy will cease to exist. This growth is only possible in a protected environment where the business can grow without the fear and anxiety of corruption and dishonesty. This required atmosphere can only be provided by proper audit. The auditor in charge of this auditing determines how far the business world can grow. A dishonest and corrupted auditor can be the one responsible for the downfall and even bankruptcy of a business giant. Moreover the consequences of audit failure can be devastating. It can not only bankrupt the company but also harm the entire system. That is why we can say that honesty, integrity and dedicated professionalism is the cry of the business world. Auditor's task is to ensure reliability of information and assessment of internal control of organization. The auditor also expresses opinion on the person or organization or system in question under evaluation based on work done on a test basis.
Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business. However, recent auditing has begun to include other information about the system such as information about environmental performance. As a result there are now professions conducting environmental...
...in order to protect investors’ interests of Hong Kong listed companies.
Auditor independence refers to the independence of internal or external auditor that may have the appropriate capabilities, competence, authority and time to perform their duties and responsibilities. Independence also requires the integrity, objectively, professional competence, confidentially and professional behavior to audit planning and audit process. To prepare of informative, accurate, and independent audit reports, the auditors of listed company are independent in order to protect the interests of investors.
The independent auditor must have the professional qualifications with the education and audit experiences. They should be straightforward and honest in professional audit process and business relationship. They should be express the recommendation for the truth and fairness of the financial statement, and comply with the guidelines, professional codes or standards issued by HKICPA, Hong Kong Stock Exchange and other professional or statutory bodies. They should have expertise in the accumulation of audit evidence, monitor and enhance the effectiveness of internal control. They should identify the area of weakness and inefficiencies or any possible of errors in its system of internal control, then they can provide the effective recommendation to increase the related area efficiency and facilitates the...
...Beginning the Audit Report
Audit Process Plan
100 Shoe Plaza
Shoetown, ME 00001
[ENTER TODAY’S DATE]
Chairman, President and CEO
Apollo Shoes, Inc.
100 Shoe Plaza
Shoetown, ME 00001
Dear Mr. Lancaster,
This letter explains how I intend to carry out the audit process for Apollo Shoes, Inc. I will continue audit services for the company, which will involve a series of steps. I first need to receive the preliminary list including organizational charts and financial statements. I will plan the engagement while assessing the risk. Risk assessment will help me identify key risks that the company has and making plans on how to properly address those risks. After risk assessment is complete, I will plan the audit and schedule a meeting with management of Apollo Shoes, Inc.
During the management meeting, senior management and administrative staff who will be involved in the audit process need to be present. I will discuss with them the overall scope of the audit, and answer any questions about audit areas that the staff is concerned about. We will then go over the timeline of the audit and ensure that timing issues and deadlines are satisfactory to both the auditor and the client.
After the meeting, I will finalize the audit plan before beginning fieldwork. Fieldwork will involve...
...based on the evidence already obtained, disclaim an opinion, or follow up on the information provided by the chairperson of the board, knowing that the client may not pay for the additional audit time spent.
2. What to tell the second client. Providing confidential information will violate the Code of professional conduct but if it is not provided, the second client may purchase Hi-Sail, which could be a bad investment, and the auditor might lose the second client.
The parties are affected and their rights are
1. Management, including the president and controller, have the right to have the audit completed on a timely and cost-effective basis and to a proper consideration of their claims.
2. The board of directors, including the chairperson, have the right to insist that the financial statements be fairly presented by management and on a timely and effective audit. The chairperson has a right to be heard and to have the auditor obtain evidence to support or contradict his claims.
3. Current and prospective creditors and investors, including the second client and any other prospective purchaser of Hi-Sail, have the right to receive fairly presented financial statements on a timely basis and to an unbiased opinion on those statements.
4. The individual auditor and audit firm have the right to be paid for services rendered and to have access to all evidence needed to form an opinion on the...
Audit Report Lag and the Effectiveness of Audit Committee
Among Malaysian Listed Companies
Ummi Junaidda Binti Hashim
Universiti Sultan Zainal Abidin
Tel: 609-6653760; Fax: 609-6669220
Rashidah Binti Abdul Rahman
Accounting Research Institute, Universiti Teknologi Mara Shah Alam
Tel: 603 55444745; Fax: 603 55444921
The purpose of this study is to examine the link between audit committee characteristics
and audit report lag among 288 companies listed at Bursa Malaysia for a three year period
from 2007 to 2009. The characteristics of audit committee examined are audit committee
independence, audit committee diligence and audit committee expertise. In this study, audit
report lag refers to the number of days from the company’?s year end (financial year) to the
date of auditor’?s report. The results of this study show that audit report lag for the listed
companies in Malaysia ranges from 36 days to 184 days for the three year period. The
...Importance of Night Audit
The night audit is the control process whereby the financial activity of guest’ accounts is maintained and balanced. This process tracks charges and payments (debits and credits) and the departmental receipts and charges on a daily basis.
This section is the team that assumes the role of reconciling a hotel’s daily activities and transactions.
They compiles a series of reports and data into a report called the night audit report for management review as part of its control procedures conducted at night, when the hotel typically less busy.
Functions of the Night Audit:
The major functions of the night audit are to:
a. Verify posted entries to guest and non-guest accounts
b. Balance all front office accounts
c. Resolve room status and rate discrepancies
d. Review guest credit transactions against established limits
e. Generate operational and managerial reports
The Night Auditor
The duties of the night audit team:
* The summary and statistical data compiled into the night audit report are generated.
* Daily hotel transactions are verified.
* Certain front office functions, such as front desk and PBX are assumed by this team.
* Posted entries to guest and non-guest accounts are verified.
* All front office accounts are balanced.
* Rooms status and rate discrepancies are resolved.
* Guest credit...
...Completing the Audit
Nature of a balance sheet approach to the audit & implications for auditing the income statement
* Obtain sufficient, competent, evidential matter for all balance sheet accounts
* Note that if all balances are fairly stated, and the balance sheet balances, then Retained Earnings must be correct
* If Retained Earnings is correct, then the Income Statement’s net income cannot be materially in error
* Therefore, less work is done auditing the income statement
Income statement accounts typically audited (including sensitive accounts) and approaches used
* Much greater use of analytical procedures
* Already have some evidence from tests of controls (e.g., revenues, payroll costs, etc.)
* Scan for unusual transactions and vouch any unusual transactions found
* Vouch sensitive accounts, including legal expense, travel expense, repairs and maintenance expense, miscellaneous revenues and miscellaneous expenses, etc.
Relationship between B/S and I/S Accounts
Substantive procedures for auditing payroll.
*Accounting for contingent liabilities - - what are the GAAP rules. *
* Loss contingencies should be reflected in the financial statement amounts when:
* It is probable that a loss had been sustained before the balance sheet date
* The amount of the loss can be reasonably estimated
* Loss contingencies should be disclosed in the notes to the financial...
• Softlogic Holding Ltd.
• Auditors role in Corporate Governance
• Audit Committee of Softlogic Holding Ltd.
• Audit Committee’s influence in Corporate Governance protocols at Softlogic Holdings
• The Cadbury Committee and Softlogic’s Corporate Governance Strategy
• International Standard on Auditing (ISA) 260: “Communications of Audit Matters with Those Charged with Governance”
• Governance is the term used to describe the role of persons entrusted with the supervision, control, and direction of an entity.
The purpose of this report is to identify the importance and relationship between the audit committee of Softlogic Holdings Ltd. and its corporate governance objectives. This report would identify the structure, importance and roles played out by the audit committee and top management’s perspective on complying with corporate governance standards.
According to the World Bank Corporate governance is “the system by which companies are directed and controlled”. It involves the balance of powers among three key corporate constituencies: the board of directors, which is charged with monitoring, overseeing, and guiding the company; the shareholders, who invest their funds in the company’s shares and, therefore, have the right to elect and possibly dismiss directors;...