2. A) A client can be put in a more powerful position than the auditor in an auditor-client relationship if the auditor is trying to sell the client additional services. B) According to SOX external auditors are prohibited from providing certain services to clients: book keeping or other things related to the accounting records or financial statements of the audit client‚ they are not allowed to design and implement financial information‚ appraisal or evaluation services‚ internal audit outsourcing
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In the business world nowadays‚ being ethical is vital to maintain the confidence of consumer. Meanwhile‚ the professional ethics of auditors are more significant to increase usefulness of financial statement and users’ confidence towards financial statement. 5 professional ethics that auditors must possess are (1) Objectivity‚ member should not allow bias‚ conflict of interest or undue influence of others to override professional or business judgement. (2)Professional behaviour‚ member should
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due care? standards is that the auditor should not be quilty of 3) Gross negligence can best be defined as 4) Section 18 liability is relatively narrow in scope because it relates only to a false or misleading statement in documents "filed" with the 5) For a particular assertion‚ contril risk is the risk that 6) Which of the following would not be an important factor in the understanding an entity’s industry‚ regulatory environment and other external factors? 7) Which of the following
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must be completed‚ the auditor must select the suitable Audit Report that will show the industry that ClariCall’s financial statements were reviewed clearly and without impaired judgment. Alicia White‚ Senior Partner‚ KRA‚ suggests asking the customers for verifications due to the high volume of sales ClariCall’s Revenue Account shows. Confirmation procedures for receivables are important audit tests that lead to sales verification. I would agree with requesting for external confirmations first. In
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audit and external audit of WorldCom were not performing their role as intended. Generally‚ internal audit mainly focus on the reliability of financial reporting and the effectiveness of operations‚ and reports directly to the Board of Directors. In WorldCom‚ however‚ internal audit rarely or even never conducted a financial audit. Moreover‚ WorldCom’s audit reported to CFO Sullivan instead of the Board of Directors‚ which means CFO Sullivan could easily restrict any audit request. The external auditor
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the products it sells as well as the place where customers purchase the products. For its communication process‚ and information systems process‚ Kudler Fine Foods will carry out a performance audit‚ for its financial system it will carry out an external and internal audit‚ for its marketing process it will carry out a performance audit‚ and for facilities‚ Kudler Fine Foods will carry out an internal audit. For its communications system‚ Kudler Fine Foods will carry out an operations audit. The
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ABSTRACT The purpose of this paper is to identify the existence of audit committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector but there are small differences in the implementation between this two sector that has been discuss in this study. This study also discuss about the characteristic of audit committee‚ effectiveness of audit committee‚ the
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the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. • The auditors of the Andersen firm. They didn’t do their responsibility and didn’t follow professional standard rule. • The high level of managers of the Andersen firm because they didn’t train their auditors well. They may ignore some important ethical principles and only pay attention how to make their revenues. Question 2‚ Three types of consulting
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PROFESSIONAL MISCONDUCT By: Mrs. Surbhi Bansal M.Com.‚ FCA Sec.2 (2): Members deemed to be in practice: If he i) Engages himself in practice of accountancy‚ or (ii) Offers to perform audit related services or holds himself out to the public as an accountant‚ or (iii) Renders professional service or assistance in Matters of accountant interest etc.‚ or‚ (iv) Renders such other services which as per opinion of the council‚ to be rendered by C.A. in practice. (Mgt
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be complete‚ accurate and unbiased. 2. Differences between auditor and accountant Differences Auditor Accountant Objective Focus on existing accounting transactions and classifications‚ making sure they are reasonable and correct. Focus on current information‚ dealing with day-to-day issues‚ closing the books and making sure tasks such as paying bills are done properly. Reports Auditors present reports to management on findings (discrepancies or
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