Unit 5 GEL Assignment – The Scientific Method Refer to Chapter 11 of the textbook‚ Objective Question 11-38. Assume that fraud has been discovered in the “Possible Errors and Fraud” list‚ shown as A through O in the problem. Select two of the fraud items from the list and note them here: Fraud Item #1 Invoices for goods sold are posted to incorrect customer accounts. Fraud Item #2 Invoices are sent for shipped goods and are recorded in the sales journal‚ but are not posted to any customer
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Process Of Auditing‚Auditing Vs Investigation INTRODUCTION: Introduction to auditing: Economic decisions in every society must be based upon the information available at the time the decision is made. For example‚ the decision of a bank to make a loan to a business is based upon previous financial relationships with that business‚ the financial condition of the company as reflected by its financial statements and other factors.As a result the bank has lost both the principal and the interest
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ACC 3401 Audit and Professional Ethics │LECTURE 1│ Concepts of Auditing Learning Objectives After the lecture‚ students should be able to: describe the nature‚ purpose and scope of an audit; describe various basic principles and concepts of auditing and explain their importance in the actual audit procedures; and describe the professional framework within which auditors must operate. 1. Accounting vs. Auditing Accounting - the process of recording‚ classifying‚ summarizing and
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I THE RED FLAGS and the Allegations by the SEC -1996‚ Ruttenberge family sold a large chunk of stocks for $49.6m on the second public offering while the financial statements continuously showed positive trends - The financial statements analysis - Cash flows were negative while profit was reported. Early 1999‚ liqutity problem arised‚ sold $200M of high-yield or Junk bonds in mid 1999. - Justice Department: Adam Gilburne: guilty to conspriracy to commit wire and securities fraud to inflate
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Question 1 Incentives: Financial pressures from changes in the market and industry intense competition (national‚ regional‚ local) under cut prices from municipalities that could offer lower prices by using tax revenue. Pressure to meet earnings expectations Stock ownership benefits Retirement benefits Performance based bonuses Maintain growing stock price Maintain industry leadership Maintain reputation Opportunities: Able to use a lot of estimates in depreciation of PPE (over 1/2 of assets)
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Page 1 of 15 CEBU CPAR CENTER Mandaue City‚ Cebu AUDITING THEORY AUDITING IN A COMPUTER INFORMATION SYSTEMS (CIS) ENVIRONMENT Related PSAs/PAPSs: PSA 401; PAPS 1001‚ 1002‚ 1003‚ 1008 and 1009 PSA 401 – Auditing in a Computer Information Systems (CIS) Environment 1. Which statement is incorrect when auditing in a CIS environment? a. A CIS environment exists when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit
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SCOPE OF AUDIT 6 ANSWER: TOPIC 2 - DISTINCTION BETWEEN ACCOUNTING AND AUDITING 7 ANSWER: TOPIC 3 - TYPES OF AUDITS AND AUDITORS 8 ANSWER: TOPIC 4 - MEANING OF TRUE AND FAIR VIEW 9 ANSWER: TOPIC 5 - DESCRIBE THE PROFESSIONAL ETHICS THAT ARE RELEVANT TO AUDITORS 10 CONCLUSION 11 APPENDIX 12 REFERENCES INTRODUCTION After done this assignment‚ we can understand deeper on the job of auditing. First of all‚ the knowledge that we receive in the first topic is we can
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STATE AUDITING IN THE PHILIPPINES Reported by: MYRLA P. SEDENIO RUTH C. TACUJAN A. OBJECTIVES I. To Discuss the State Audit System 2. To Identify Issues and Limitations of Government Auditing 3. To Discuss the Measurement of Government Performance B. INTRODUCTION The Philippine Constitution emphasizes the importance of accountability in the government. Article XI simply and bluntly begins: “Public office is a public trust‚” before it adds that officials and employees
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NATURE of AUDITING‚ ATTESTATION AND ASSURANCE SERVICES Let us understand a few terminologies before going further in the discussion of the details of auditing and assurance since these terms will be used often throughout the text. Auditing‚ attestation and assurance services are often used interchangeably because they encompass the same decision-process: defining the decision problem‚ defining the alternative choices‚ identifying and obtaining information relevant to the decision problem‚ evaluating
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between sample size and other elements of auditing? A. If materiality increases‚ so will the sample size. B. If the desired level of assurance increases‚ sample sizes can be smaller. C. If materiality decreases‚ sample size will need to increase. D. There is no relationship between sample size and materiality or the desired level of assurance. 3. Which of the following statements about the study of auditing is NOT true? A. The study of auditing can be valuable to future accountants and
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