IN DEPENDENCE OF AUDITOR – ENRON AND ARTHUR ANDERSEN CASE Introduction The world economy in recent years has got some significant growth but also had quite serious scandals. They caused the shakes for many‚ both citizens and authorities. Therefore‚ it is a challenging time and it is the time for change. An absolutely necessity is to enhance the true reliable financial information because the success on the capital market depends on it. The key factor is to assure that auditors must take a completely
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accuracy of balances and other information with outside parties). Existence; rights and obligations Inquire Obtaining client’s representation letter; explanation to many diverse questions raised during the audit (to obtain knowledge). Completeness Examine‚ Inspect‚ review‚ trace‚ verify and vouch Examining (or vouching) paid checks‚ vendor’s invoices‚ approved client documents (voucher; purchase orders‚ receiving reports) titles‚ contracts and other documentary materials
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external auditors to be independent? Relate your answer to the primary role of external auditors? By Zachariah Godfrey-Plews This essay has asked me to look at the importance of external auditors and why it is vital for them to remain independent. I will try and look at the many ways of the advantages of independent auditing from different perspectives for example the company itself‚ the general public and the state. I think it is important to first define what an audit and an external auditor to be
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an outside firm). As defined by the Institute of Internal Auditors (IIA)‚ "Internal auditing is an independent‚ objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic‚ disciplined approach to evaluate and improve the effectiveness of risk management‚ control‚ and governance processes. Internal Auditors’ roles include monitoring‚ assessing‚ and analyzing organizational
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What do you believe about writing‚ and why? What do you believe about writing‚ and why? I believe that writing can be a great tool for everyone in order to express themselves freely. Not everyone is a writer; some people have to work at putting their thoughts and words together‚ before putting them to paper. We are all unique in how we express ourselves; some are just more creative than others. How do we as individuals‚ get to that point to be able to expand or elaborate further on paper
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Ami Denman Dr. Anderson Phil 1043 4/26/13 Do You Believe In Miracles? Do you believe in miracles? I find it rather intriguing that some people still try to use science or any number of other disciplines as a way of explaining‚ give meaning or rationalizing the question of miracles or the existence of a higher power. I find it hard to understand why humans deny at least the possibility that everyday life presents us with mysteries that cannot simply be explained by human reasoning‚ rational
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What is the role of an accountant? The role of an accountant is generally described as someone who handles the financial records of the business and prepares the financial statements for them. There are different types of accountants though‚ and this essay looks at what roles these are in particular‚ looking at how they are similar and how they differ from each other. This essay will look at the role of the accountant in smaller businesses‚ like family businesses‚ and the wider business environment
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AUDITOR’S INDEPENDENCE AND ACCOUNTABILITY IN NIGERIA PUBLIC ENTERPRISE This study seeks to identify the determinants of auditors’ independence in public enterprises and determine the policy implications of lack of auditors’ independence in the public sector. The data for the research was primary and collected via questionnaire from the Nigerian Ports Authority Headquarters Lagos. The questionnaire responses were analyzed using the percentage method. The hypothesis was tested using
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Coursework Essay Topic: Why is it important for external auditors to be independent? Relate your answer to the primary role of external auditors. Give examples of specific ways the lack of auditor independence may impact adversely on an audit. In 2001‚ there was an event that had shaken the whole business world. The crash of Enron in US‚ followed by worldwide collapse of its auditor‚ Arthur Andersen. It was a greatest corporate failure uncovered in business
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third-party can only give information on what they know. Using physical evidence has a limitation because things may not always look as how they appear. Ernst & Whinney believed they were at one of ZZZZ Best’s restoration sites‚ but in fact Minkow had spent $4 million on a building. He did this to make it look like the building was one of his restoration sites‚ but in reality it was just a building he had bought for the sole purpose of duping the auditors. As for analytical procedures performed
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