correct accounting period Classification: transactions and events have been recorded in the proper accounts Account Balances at Year End Existence: assets‚ liabilities and equity interests exist Rights and Obligations: the entity holds and controls the rights to the assets‚ and liabilities are the entity’s obligations Completeness: all assets‚ liabilities and equities that should have been recorded have been recorded Valuation & Allocation: assets‚ liabilities and equity are included
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financial statements and supplementary disclosures. | Question #2 (AICPA.921110AUD-AU) | | | As the acceptable level of detection risk increases‚ an auditor may change the | A. Assessed level of control risk from below the maximum to the maximum level. | | B. Assurance provided by tests of controls by using a larger sample size than planned. | | C. Timing of substantive tests from year end to an interim date. | | Performing substantive tests at an interim date increases the risk that
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topics. Deficiencies in Audits of Internal Controls The most significant deficiencies that I identified in auditing internal controls are the following: * The firm’s failure to sufficiently test the design and operating effectiveness of management review controls‚ such as their forecasts for revenues * The firm’s failure to test the system-generated data and reports that support vital controls * The firm’s failure to identify and thoroughly test controls that are intended to address risks
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such positions as CEO and CFO can be motivated to commit financial statement fraud because of perceived personal or corporate pressures such as maintaining personal income or wealth that stems from living beyond their means‚ preserving status or control- whether it be the company or a department within the company‚ particularly if bad performance will lead to termination‚ or to conceal true business performance especially if the company isn’t performing well. Another pressure could be financial goals
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performing the audit work. - Due professional care – observance of the rules of professional ethics and CAS. Doing the work to the best of your ability Examination standards - Planning and supervising - Understanding the system on internal control of the business - Design procedures to detect fraud - Gather sufficient and appropriate (reliable and relevant) evidence/matter 1. Appropriate evidence are quantitative and qualitative 2. Objective and subjective
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0.Introduction..............................................................................................3 2.0.Understanding of the client and its environment.......................................................................3 2.1.Internal Control.........................................................................................................................3 2.2.External factors understanding...................................................................................
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procedures and process of communicating internal control related matters identified in an audit and provides guidelines to external auditors about communicating an entity’s internal control-related matter identified during the audit. It permits management to prevent‚ detect‚ and correct misstatements. It addresses three categories of deficiencies‚ which may exist in the external audit of a company’s financial statements. Types of Deficiencies The first is control deficiency‚ which applies when the design
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Assignment 3: Freescale Semiconductors‚ Inc. Desislava Tabakova Advanced Auditing Additional laws and harsher penalties can eliminate crimes if the criminal feels that there is a direct relationship between punishment and crime. According to the deterrence theory of crime if there is certainty of punishment‚ additional laws and harsher penalties will reduce financial fraud or even mitigate it. Additional laws can make punishments more severe and harsher penalties can increase the intensity of punishments
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public companies‚ Section 404 on internal control‚ the main advantages and disadvantages‚ and what changes should be made to SOX. Finally‚ a discussion about how legislation cannot guarantee the accuracy of public financial statements will be examined. Along with this issue‚ Team Nitpickers will dig deeper and look into reasons as to why CEO’s and CFO’s are paying closer attention to this law. The CEO’s and CFO’s of Public Companies Internal Controls This section discusses how Section
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financial statements • to give advice on the clients’ internal control system. 2. TYPES OF AUDITS 1. External or Statutory Audit • Examination of the truth and fairness of financial statements by independent auditors. Hong Kong Companies Ordinance requires the financial statements of limited companies to be audited each year. 2. Internal or Operational Audit • evaluate companies internal control system •
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