In recent years‚ as the collapse of some renowned companies‚ the issue of audit independence turns to be more and more concerned by the international regulators. Independence is the cornerstone of the auditing profession‚ and auditor’s opinion is suspect if lack of independence. However‚ in some circumstances‚ some potential threats of audit independence would be generated as jointly provision of non-audit and audit services to the audit client. Although it will create threats to independence‚ some
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between sample size and other elements of auditing? A. If materiality increases‚ so will the sample size. B. If the desired level of assurance increases‚ sample sizes can be smaller. C. If materiality decreases‚ sample size will need to increase. D. There is no relationship between sample size and materiality or the desired level of assurance. 3. Which of the following statements about the study of auditing is NOT true? A. The study of auditing can be valuable to future accountants and
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MEANING OF AUDITING The word ‘Audit’ is originated from the Latin word ’Audire’ which means ’to hear’. In the earlier days‚ whenever there is suspected fraud in a business organization‚ the owner of the business would appoint a person to check the accounts and hear the explanations given by the person responsible for keeping the account and funds. In those days‚ the audit is done to find out whether the payments and receipt are properly accounted or not. The objective of modern day accounting
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STATE AUDITING IN THE PHILIPPINES Reported by: MYRLA P. SEDENIO RUTH C. TACUJAN A. OBJECTIVES I. To Discuss the State Audit System 2. To Identify Issues and Limitations of Government Auditing 3. To Discuss the Measurement of Government Performance B. INTRODUCTION The Philippine Constitution emphasizes the importance of accountability in the government. Article XI simply and bluntly begins: “Public office is a public trust‚” before it adds that officials and employees
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ACC 3401 Audit and Professional Ethics │LECTURE 1│ Concepts of Auditing Learning Objectives After the lecture‚ students should be able to: describe the nature‚ purpose and scope of an audit; describe various basic principles and concepts of auditing and explain their importance in the actual audit procedures; and describe the professional framework within which auditors must operate. 1. Accounting vs. Auditing Accounting - the process of recording‚ classifying‚ summarizing and
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The future of auditing Called to account The auditing industry has yet to recover from the damage inflicted by an era of corporate scandals Nov 18th 2004 |From the print edition * * NO ONE becomes an auditor because the job is adventurous. In recent years‚ however‚ the profession has been really rather racy. Auditors have been implicated in fraud after fraud. The Enron scandal brought down Arthur Andersen‚ which had been one of the profession ’s five giant firms. Now a scandal at
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Control risk The auditor obtains an understanding of the design and implementation of internal Control to make a preliminary assessment of control risk as part of the auditor’s overall Assessment of the risk of material misstatements. The auditor uses this preliminary assessment of control risk to plan the audit for each material class of transactions. However‚ in some instances the auditor may learn that the control deficiencies are significant such that the client’s financial statements may
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SCOPE OF AUDIT 6 ANSWER: TOPIC 2 - DISTINCTION BETWEEN ACCOUNTING AND AUDITING 7 ANSWER: TOPIC 3 - TYPES OF AUDITS AND AUDITORS 8 ANSWER: TOPIC 4 - MEANING OF TRUE AND FAIR VIEW 9 ANSWER: TOPIC 5 - DESCRIBE THE PROFESSIONAL ETHICS THAT ARE RELEVANT TO AUDITORS 10 CONCLUSION 11 APPENDIX 12 REFERENCES INTRODUCTION After done this assignment‚ we can understand deeper on the job of auditing. First of all‚ the knowledge that we receive in the first topic is we can
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101-1). In Goodbread’s case this refers to the fact that he had shares of stock (direct financial interest) in his possession when he was the audit engagement partner who oversaw the audit of Koger Properties‚ Inc. Under the Generally Accepted Auditing Standards (GAAS) there are three sections‚ General Standards‚ Standards of Fieldwork‚ and Standards of Reporting. Under the General Standards section of GAAS there is a specific standard for independence and it reads‚ “The auditor must maintain
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201037076 Puriza U. Topic: Using technology to improve internal audit communications in the Banking Sector Background Internal auditing has come a long way over the last two or three decades. In the past‚ internal auditing was seen as a mechanism to double-check the thousands of financial transactions that were posted to the accounts each week. Today an internal auditor facilitates the development of suitable controls as part of a wider risk strategy‚ and provides assurances on the reliability
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