which exceeds materiality of $50‚000. c. The auditor should either propose an audit adjustment so that the unadjusted statement amount is less than materiality‚ and/or perform more testing to obtain a better estimate of the population misstatements. The additional testing will likely focus on receivables and inventory because they have the largest estimated misstatements. 9-28 a. The following terms are audit planning decisions requiring professional judgment: Preliminary judgment about materiality
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Fundamental concepts of f/s audit Materiality misstatement of accounting information. is a matter of professional judgment Audit risk The auditor expresses an inappropriate audit opinion when the financial statements are materially misstated‚ Evidence (more than “per discussion with client) Major phrases of audit: Client acceptance/continuance; Preliminary engagement activities; Establish materiality and assess risks; Plan the audit ;Consider and audit internal control; Audit business processes and
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Q1 - What is the relationship between the risk assessment process and the collection of audit evidence? The risk assessment process happens at the very beginning of the engagement and is to determine the level of risk present in the company. The risk assessment phase is when the auditor assess the client’s situation‚ conducts an independence threat analysis and decides whether to accept the client or not. The risk assessment is influenced by various factors such as the degree to which external
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Veteran’s Marketing Memo Military veterans stood up for our country and are not recognized enough for their dedication. There are many programs dedicated to providing assistance to veterans but not many ways to reward them for their devoted service to their country. Many veterans have been affected due to combat and some need help transitioning from military life to a civilian. As the director of for a military veterans foundation I must raise money to create a fallen heroes monument. The first
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The Demand for Audit and Other Assurance Services O ssu a S s Chapter 1 ©2012 Prentice Hall Business Publishing‚ Auditing 14/e‚ Arens/Elder/Beasley Arens/Elder/Beasley 1-1 SarbanesSarbanes-Oxley Act Enron WorldCom The Act established the Public Company Accounting Oversight Board. It also requires auditors to report on the effectiveness of internal control over financial reporting. ©2012 Prentice Hall Business Publishing‚ Auditing 14/e‚ Arens/Elder/Beasley Arens/Elder/Beasley 1-2
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Accounting Education: an international journal Vol. 20‚ No. 2‚ 203– 222‚ April 2011 Adding Value to Audit Education through ‘Living’ Cases JULIE DRAKE University of Huddersfield‚ UK Received: November 2009 Revised: July 2010 Accepted: September 2010 ABSTRACT This paper seeks to address the perceived failure of university teaching to foster critical understanding of audit practice and to identify a potential remedy. It contributes to the debate (Maltby‚ 2001‚ “Second thoughts about ‘Cases in
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MEMO Date: February 17‚ 2014 To: Information and Communications Technology Center (ICTC) From: Janselle Myles Laragan‚ Nino Abenojar‚ Nicole Fenol‚ Rolex Dimapilis‚ Benjamin Seo Subject: IKOT La Salle Tracker Introduction and Recommendation In the past 6 years of implementing a jeepney transportation or also known as Ikot La Salle is very helpful in the University. Walking inside the campus in 27 hectares is not appropriate; students‚ faculty‚ and also visitors can ride in Ikot La Salle
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456 Chapter Eleven Appendix 11B Illustrative Audit Case: Keystone Computers & Networks‚ Inc. Part III: Substantive Tests—Accounts Receivable and Revenue This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments
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theft. D. Expected effectiveness of controls. 13. The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when‚ in fact‚ such misstatement does exist is referred to as A. Audit risk B. Inherent risk C. Control risk D. Detection risk 14. Evidential matter concerning proper segregation of duties ordinarily is best obtained by A. Preparation of a flowchart of duties performed by available personnel. B. Inquiring whether
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University Hospital Memo To: Pat Rowe‚ Vice President From: Yilin Zhang CC: Jon M. Werner Date: 5-Nov-13 Re: Technology Training Recommendations With the development of medical science and medical technology‚ high-tech medical devices‚ which come out constantly‚ help caregivers stay informed about new equipment and principles of work performance‚ safe use of new equipment‚ and other issues that are increasingly prominent. Meanwhile‚ the poor attitude of staff during training is also a big
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