The objective of analytical procedures is to identify the existence of unusual transactions and events‚ and amounts‚ ratios and trends that might indicate matters that have financial statement and audit planning ramifications*. First‚ the auditors should consider information regarding the industry in which the client operates**. In this case‚ average machine setup time from start to finish is approximately six hours‚ which is slightly below the industry average. It means the company is efficient
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Assurance) at Price Waterhouse Coopers. He offered comprehensive business and technical training‚ professional examination training support as well as an excellent environment for career development. Ahmed Godil Manager-Risk Assurance Services-Internal Audit at PricewaterhouseCoopers Dr Kaup Mohammed. The Dean and Director of the London American City College who allowed me to carry out my internship at PricewaterHousecoopers. Prof. Dr. Paulson Paulson Mathew Chunkapura‚ President of the Middle East
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DECEmbEr 2008 IFAC P o l IC y P osI t Io n 3 InternatIonal Standard SettIng In the PublIc IntereSt IntroductIon This paper outlines the rationale for the regulatory arrangements put in place for setting international standards for auditing and assurance‚ ethics and accounting education; arrangements in which responsibility is shared between the public sector and the private sector. While the previous IFAC policy position paper on regulation of the accounting profession1 addressed regulatory
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Burlingham Bees 1. AU 329 a. Based on the standards‚ describe the guidelines for developing an expectation and conducting analytical procedures when those procedures are intended to provide substantive evidence (para. 9-22). i. .09 Reliance on substantive tests: may be derived from tests of detail‚ from analytical procedures‚ or from a combination of both. The decision about which procedure to use is based on the auditor’s judgment. ii. .10 Level of assurance: analytical procedure
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Ong (CEO) Duty of care‚ skill and diligence: Ong failed to use reasonable diligence in discharging his duties. He did not inform the Audit Committee (“AC”) of the controversy surrounding the recognition of ISR revenue. For AIP‚ he made unwarranted assumption to consider ‘start of course’ as ‘start of course procedure’ without seeking professional advice. He had inappropriately recognized Franchise Revenue ‚ contributed by flip pathfinders’ agreements‚ albeit knowing that these agreements were
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Jewanram Assignment 2 Question 2 MEMORANDUM DATE: October 7‚ 20X4 TO: John Jones‚ CEO FROM: Alex Jewanram‚ Chief Audit Executive RE: Risks faced by CWTI As requested‚ I have identified the following risks and methods required by the company to reduce or mitigate these risks to an acceptable level. Please review this so that we can discuss the issues prior to circulating to the audit committee. a. Competition Risk: The risk of losing customers to competitors. (This risk can be mitigated by improving
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Chapter 17 Assignment Situation List A List B 1. In auditing the long-term investments account‚ an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. Either an “except for” qualified opinion Describe the circumstances in an explanatory paragraph preceding the opinion paragraph‚ and modify the scope and opinion paragraphs. 2. Due
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auditors will need to design substantive procedures to try to detect whether control failures have produced misleading financial statement account balances. True False 10. If the risk of material misstatement is assessed as high‚ it is likely that additional substantive procedures will be required. True False 11. The emphasis is on the completeness assertion because financial statement users tend to be more concerned about understated expenses and liabilities than overstated. True False
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Substantive Procedures to Evaluate Cash Irregularities Substantive procedures for detecting irregularities in the cash cycle follow normal audit procedures of testing internal controls over cash and by collecting and evaluating audit evidence are needed. Following instruction set forth by Joe Bootwell‚ Chief Financial Officer (CFO)‚ Karina Ramirez‚ Director of Internal Audit‚ established the following procedures for testing cash irregularities (University of Phoenix‚ 2013). 1. Cash receipt procedures.
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user of financial statements are essentially the same. They are both concerned with the problem of unreliable information being provided. In the case of the auditor‚ the user is concerned about unreliable information being provided in the financial statements. The buyer of an automobile is likely to be concerned about the manufacturer or dealer providing unreliable information. c. The four causes of information risk are essentially the same for a buyer of an automobile and a user of financial statements:
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