The auditor must attain enough evidence to determine the general cash account is comparable to the balance sheet of the end of year for the balance related objective. Areas that may need to be controls should be transaction cycles affecting the recording of cash receipts and disbursements and independent bank reconciliations. It is essential that adequate segregation of duties with the proper authorization for signing off on checks and wire transfer of funds can provide a reduction of control risk for upper management as an audit is being…
(Assertions) In planning the audit of a client’s financial statements, an auditor identified the following issues that need attention.…
The objective of our audit is the expression of an opinion about whether your consolidated financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit will be conducted in accordance with auditing standards generally accepted in the United States and will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.…
The purpose of this paper is to determine why the Financial Accounting Standard Board (FASB) set-up the codification of Generally Accepted Accounting Principles (GAAP). In the following paragraphs the purpose and reason are defined. The break-down of the nine main areas are described with a break-down of each area. An accounting professional will use these areas many times in his or her career, so the knowledge offered is important.…
The relevance of accounting information for business analysis and valuation is also discussed and limitations of accounting information are identified. Last, accrual accounting is discussed including the strengths and limitation of accruals, and the implications of accruals for financial statement analysis. 2-1 Chapter 02 - Financial Reporting and Analysis OUTLINE Financial Reporting Environment Statutory Financial Reports Financial Statements Earnings Announcements Other Statutory Reports Factors Affecting Statutory Financial Reports Generally Accepted Accounting Principles GAAP…
This research paper is being submitted on March 10, 2013, for Tiffany Krogman, A340/ACG3085 Section 03, Advanced Auditing Concepts & Standards.…
The assertions that are of interest to an auditor during the examination of expenditure and acquisition cycle are: property, plant and equipment and intangibles - which are the management assertions. So, these management assertions that related to it are existence, completeness, rights and obligations, and valuation and allocation.…
Generally Accepted Auditing Standards or GAAS is “a set of systematic guidelines used by auditors when conducting audits on companies ' finances, ensuring the accuracy, consistency and verifiability of auditors ' actions and reports” (Lexico Publishing Group, 2008). The following paper will explain the elements of GAAS and how GAAS is applied to…
The objective of this course is to develop the students’ analytical abilities to deal with problems relating to financial situations within the firm. This course deals with the role of accounting in an organization’s planning and control system which includes costing, cost allocation, variance analysis, responsibility accounting, performance evaluation, and incentive compensation. The way in which management accounting information affects the strategic and operational decisions within the organization will also be discussed.…
Our audit will be conducted with the objective of our expressing an opinion on the…
Throughout this paper a summary of the four elements of financial management will be discussed. A summary of generally acceptable accounting principles and general financial ethical standards will also be addressed. Examples from specific articles that reflect ethical standards of conduct and financial reporting practices along with the significance of each example will be identified and discussed in detail.…
A large corporation with securities listed on a stock exchange is required by the rules of the stock exchange and by the rules of the Securities and Exchange Commission to provide an audit report with the annual financial statements furnished to its stockholders. It also is required to engage the auditors to provide an opinion on its internal control. Apart from legal requirements, however, a large listed corporation recognizes that it must maintain investor confidence in the reliability of its financial statements and internal control over financial reporting if it is to continue to be able to…
Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning 1. Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit, if any. 2. Focus specifically on each of the five management assertions (existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosure) for the inventory account. Link any risks you identified for this account in question 1 to the related management assertion. Briefly explain identified risks or issues for the inventory account that require further attention, if any. Background About Laramie Wire MFG.…
This paper explores the ZZZZ Best Company which was begun by a 16 year old individual who was able to pull the wool over the eyes of many customers, investors and auditors. This paper will define the difference between review and audit when it comes to financial reports, comments on the procedures provided with regard to the management assertion of occurrence, verification of payments for jobs and how they can lead auditors to improper conclusion, the purpose of predecessor-successor auditor communications, as well as whom needs to initiate the communication and information that needs to be obtained. The paper also addresses the limitations of the confidentiality agreement and how and when client-imposed audit scope limitations affect the type of audit opinion used as well what procedures professional standards require auditors to perform when reviewing a client's pre-audit report and post-year-end earnings press release. Accuracy, honesty and integrity are both keys to the success in auditing and following the rules of GAAP are a must for all those involved.…
Resource: Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning from Auditing Cases: An Interactive Learning Approach located on the Week Four Materials page…