that are persuasive rather than conclusive. 7. Professional judgment and professional skepticism: A. Identify material misstatements B. Obtain sufficient appropriate audit evidence regarding (A) C. Form an opinion of the FS Overall Objectives of an Auditor A. To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement‚ whether due to fraud or error B. When reasonable assurance cannot be expressed under certain circumstances then the auditor
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judgment and maintain professional skepticism throughout the planning and performance of the audit to Identify and assess risk of material misstatement‚ whether due to fraud or error‚ based on an understanding of the entity and its environment‚ including the entity’s internal control. Obtain sufficient appropriate audit evidence about whether material misstatement exist‚ through designing and implementing appropriate responses to the assessed risks. Audit process (planning‚ audit evidence‚ audit reporting)
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A) Calculate at least five ratios that are useful for access going concern using Pinnacle’s financial statements‚ which are included in Figure 8-9. Document the ratios in a format similar to the following: Ratio 2009 2008 2007 1.Cash Ratio 0.03 0.36 0.43 2.Current Ration 0.63 0.79 0.85 3.Quick Ratio 1.72 2.06 2.20 4.Accounts receivable turnover 16.79 15.47 14.15 5.Days to collect receivables 21
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for controller Organizational imperfection Organizational imperfection Incentives for misstatement Incentives for misstatement Outline Mr. Anonymous is the controller of a private-hold‚ small‚ start-up company. He was in dilemma whether to provide the fraudulently misstated financial statement to the bank‚ thus turning to his former professor Dr. Mitchell for advice. Incentives for misstatement Faced with a severe cash flow shortage‚ the company met the bank to fund its line of credit
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items over $20‚000‚ plus a judgmental sample of smaller items. * Barbara interpreted a judgmental sample to include fifty samples‚ because she could not find Jack for his interpretation of an appropriate size. * She did not find any misstatements in any of the items over $20‚000‚ but her sample of fifty smaller items contained numerous irregularities that were significant when added together. * It was after the fact when she learned that five to ten items was considered sufficient enough
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responsibilities when performing an audit. In order to obtain reasonable assurance that the audit was conducted in compliance with AU Section 316‚ auditors must meet their obligation to ensure that the financial statements are free from material misstatements. Material misstatements could be caused by any errors or fraud but the auditors must gain enough evidence to give an opinion when performing an audit. The standard is broken down into various sections discussing the descriptions and characteristics of fraud
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Budgeting and Forecasting Paper.doc FIN 375 Week 3 DQs.doc FIN 375 Week 3 Pro-Forma and Business Cycle Research Paper.doc FIN 375 Week 4 DQs.doc FIN 375 Week 4 Financial Prospectus Content Paper.doc FIN 375 Week 5 Capitalization and Reporting Document Presentation.pptx FIN 375 Week 5 DQs.doc FIN 375 Week 5 Financial Prospectus Completion Paper.doc Business - General Business FIN 375 Entire course Financial Management in Small Business Fill out your FAFSA as soon as possible. Federal
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employees and customers to invest in the company. Myer will have sufficient working capital‚ capital resources and liquidity to carry out its stated objectives on the completion of the Offer. This report is to evaluate the strategies that given in the prospectus and to provide some recommendations. First‚ a SWOT analysis will be given. The second part is stakeholder analysis of for five major stakeholders of Myer. The third part will select four strategic initiatives and evaluate its suitability and feasibility
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Review Briefly describe the results of your analytical procedures. Print this memo as an outline‚ then compose your answers as attachments in your wordprocessor. Describe any unusual or unexpected relationships that suggest risk of material misstatement? Percent of change in sales for 2011 are up from last year but still less than industry average. Inventory’s percent of change has increased to 19.6% from 2011 to 2010. This is 8.2% above the industry’s average‚ which might lead to obsolesce of
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A registration statement does not go into force until the SEC declares it so. There is two parts to registration statements. The first part is prospectus. Prospectus is describing the essential parts of how the business operates. This includes how the company is doing financially‚ if there is any risk factors and about management. The prospectus has to be distributed to anyone who purchases the securities or is thinking about purchasing the securities. The second part is any other information
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