assertions‚ instead they delve beneath the top layer of information provided by the company and search within the software to find whether the system the company uses to document all of their financials fights against intentional and unintentional misstatements. For example‚ when an auditor is proving existence they will typically look at the sales journal to see what item was sold and then prove that the item was actually sold. An IT auditor will “break into the system” and read the code that proves
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Audit of the Acquisition and Payment Cycle: Tests of Controls‚ Substantive Tests of Transactions‚ and Accounts Payable. Chapter 19 ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 19 - 1 Learning Objective 1 Identify the accounts and the classes of transactions in the acquisition and payment cycle. ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 19 - 2 Transactions in the Acquisition and Payment Cycle 1. Acquisitions
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AUDIT PROGRAM DESIGN PART II Sales and Collection Cycle The objective in the audit of the sales and collection cycle is to evaluate whether the account balance affected by the cycle are fairly presented in accordance with accounting standards. There are five classes of transactions in the sales and collection cycle. • Sales • Cash Receipts • Sales returns and allowances • Write-off of uncollectible accounts • Estimate of bad debt expense (Arens‚ 2012‚ p.442) The Key control
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Audit of the Inventory and Warehousing Cycle Chapter 21 ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 21 - 1 Learning Objective 1 Describe the business functions and the related documents and records in the inventory and warehousing cycle. ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 21 - 2 Flow of Inventory and Costs Raw Materials Beginning Raw inventory materials used Purchases Ending inventory Direct Labor Actual
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Person A is Alex Frayn. He is the CFO at D-Mertons. He is responsible for determining and reporting the financial information of a company for the previous years as well as for the future as the accuracy and the timeliness of the report helps greatly in the decision making of the company for future decisions as well as ensure that the financial information has been properly maintained and shared with the shareholders so that they know what the financial situation of the company is. Being the right-hand
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DECLARATION OF ORGINALTY AND WORD ACCOUNT I hereby declare that the graduation project is based on my original work except quotations and citations‚ which has been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at Help University or other institutions. The word count is 10‚052 words. NGUYEN THI HIEN E0700282 i ACKNOWLEDGEMENT First of all‚ I would like to express my sincere appreciation to my supervisor‚
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|Case 4.6 | |Instructional Notes | | | |Phar-Mor‚ Inc.:
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override basic accounting rules to do so‚ leading to a greater risk for material misstatement…[and] subordinates tend to be less educated‚ which could lead to a greater number of GAAP‚ classification and professional judgment errors” (13-14). VERSUS Small Power Distant Society – “decentralized so power and knowledge is more evenly distributed…more checks and balances…better training…lesser chance of material misstatement” (14). Individualistic Society – “people act in their own interests and
Free Individualism Collectivism Geert Hofstede
Table of Contents Case Study JB HI FI was founded in 1974 and consisted of one sole store in the suburbs of Melbourne‚ Victoria. Since this time JB HI FI has grown somewhat substantially‚ the company has spread its HI FI retail stores across the country and reportedly generated $2.8 billion in revenue in 2009 (Collins 2010). When observing the past 15 years of JB HI FI’s life‚ two significant organisational changes standout. The first of which is in July 2000 when the company was acquired
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a). |Account Balance |% change 2010-2011 |% Change 2009-2010 | |Net sales |1.45% |2.70% | |Cash |5.41% |-9.19% | |Net income |16.50% |-39.54% | |Accounts payable |37
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