As the convergence of IFRS and GAAP continues to impose new personal and professional challenges on U.S. auditors‚ it also presents new career opportunities for those who embrace the continuous‚ accelerating change that characterizes globalization. U.S. auditors who recognize the opportunities and prepare to take advantage of them have little to fear from the convergence. In contrast‚ auditors who are in denial about the convergence’s inevitable effects face a very different future.
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The bare facts - albeit obscured by a blizzard of comment and interpretation - have been well rehearsed in the press. We announced that‚ with immediate effect‚ every audit report issued by PricewaterhouseCoopers on a UK client company will include additional language clarifying those parties to whom we owe a duty of care as auditors (the members of the company) and those to whom we do not (anyone else). This additional language does not change our liability one iota from what everyone had understood
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action‚ results‚ personnel and cultural controls are used? Action control: Section 302 of SOX required both the company’s CEO and CFO to personally certify the “appropriateness of the financial statements and disclosures contained in the periodic report”. PacSun top management required their subordinates to share the certification responsibility. Through this responsibility sharing‚ the whole organization is engaged in this certification requirement. Results control: Section 404 dealt with internal
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Case Study 3 a) What events or condition above may cause substantial doubt about the entity’s ability to continue as a going concern? Events or condition that may cause substantial doubt about the entity’s ability to continue as a going concern are the first one‚ because of the high competition in the industry‚ it has affected the sales of the Fast Go. The effect of vigorous competition in the markets has makes it difficult for Fast Go to attract and retain customers and to grow their customer
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additional cost to Alchemy Inc. The Internal Audit department lacks the needed oversight and monitoring of Alchemy Inc. due to their limited scope and experience. The Audit Committee Policy indicates that the Internal Audit department should report to the Audit Committee. Furthermore‚ the Audit Committee is required to determine compensation and monitor the internal audit plan. Currently‚ the Internal Audit
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theories and concepts. The second part begins with accounting aspect which illustrates the motivations behind the insurance industry and the application of finite reinsurance. Regarding the auditing issues‚ the essay seeks to examine if external auditor PwC bewared‚ recognized and modified the real “problem” in AIG. Later the symptoms of the corporate governance will be analyzed by looking at agency-principal problem‚ organization culture‚ dysfunctional board and unprotected shareholders’ rights
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Hollate Manufacturing Case Study About this case study: This case study was developed as a joint effort by the Center for Audit Quality‚ Financial Executives International‚ The Institute of Internal Auditors‚ and the National Association of Corporate Directors. These four organizations have formed the Anti-Fraud Collaboration to actively engage in efforts to mitigate the risks of financial reporting fraud. The Collaboration’s goal is to promote the deterrence and detection of financial reporting
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(Apple - Supplier Responsibility 2015 Progress Report). Apple believes that it is not enough to just set high standards they must work every day to make sure they’re upheld. Apple Supplier Code of Conduct is among the toughest in the industry. To track working conditions at suppliers’ facilities‚ we conduct regular‚ in-person audits deep into the supply chain. Audits remain essential to Apple work‚ but they’re only the beginning. Apple reports monthly on working hours for over one million workers
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predecessor and successor auditors when a change of auditors is in process or has taken place. It also provides communications guidance when possible misstatements are discovered in financial statements reported on by a predecessor auditor. This section applies whenever an independent auditor is considering accepting an engagement to audit or reaudit (see paragraph .14 of this section) financial statements in accordance with generally accepted auditing standards‚ and after such auditor has been appointed
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3. a) Three parties that auditors might be held liable for negligence are : 1. Liability to client (Better Production & Co) 2. Liability to third party who use the information (Usahasama City Bank) 3. Liability to the foreseen user (who rely on the auditor’s financial statement) b) No. Aiman & Co can not be held liable to Usahasama & Co. The only action available for financial loss caused by a false financial statement was in the tort of deceit. In order to succeed‚ the claimant (Usahasama)
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