The Sarbanes Oxley ( Sox ) Act

The Sarbanes Oxley ( Sox ) Act
The Sarbanes–Oxley (SOX) Act was passed by Congress in 2002 to address issues in auditing,
corporate governance and capital markets that Congress believed existed. These deficiencies let to
several cases of accounting irregularities and securities fraud. According to the Student Guide to the
Sarbanes–Oxley Act many changes were made to securities law. A new federal agency was created,
the entire accounting industry was restructured, Wall Street practices were reformed, corporate
governance procedures were changed and stiffer penalties were given for insider trading and
obstruction of justice (Prentice & Bredeson, 2010). Tenet Healthcare Corporation, one of the largest
publicly traded healthcare companies in the US at the time, was accused ... Show more content on
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Not–for–profit companies are not mandated to follow SOX regulations but many choose to adopt
changes so that they display good corporate governance practices and appear more legitimate. It is
recommended that non–profit organizations voluntarily adhere to SOX provisions. According to an
article in Healthcare Financial Management, a four–phased rationalization approach is
recommended to implement and maintain voluntary SOX compliance (Bigalke & Burrill, 2007).
This approach uses SEC guidance to test existing controls and test plans in the short term. The long
term strategy is to implement automated controls and standardize processes and controls (Bigalke &
Burrill, 2007). This approach is more feasible than implementing all changes at once. Research
shows that mandating SOX requirements for non–profit organizations will reduce fraud and increase
corporate governance. One of the goals of the SOX act was to create transparency. Many nonprofit
organizations have adopted one or more provision from the SOX act (Nezhina & Brudney, 2012).
Analysis shows that nonprofit organizations reap the following benefits when they adopt provisions
related to SOX: Increased understanding, effectiveness, and communication of the business
processes Weaknesses of internal controls were revealed More effective risk management controls
were established Decrease in fraud A more effective board of directors The benefits lead to more
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Arthur Anderson Ethical Case Study
There were several internal control issues with Arthur Andersen (AA) that contributed to the Enron
disaster. Firstly, AA gave Enron nonaudit services as well as audit services, meaning that AA could
advise the structuring of transactions for desired disclosure outcomes and other work and later give
an audit opinion on these transactions. This resulted in a blatant conflict of interest issue that many
audit professionals did not recognize. Secondly, the "tone at the top" of AA did not encourage ethics
or quality of work. Joe Berardino, CEO, made it clear that success was tantamount with revenue. He
was noted by one former partner as the "most aggressive pursuer of revenue" that she had ever met.
AA failed to recognize how angry the public ... Show more content on Helpwriting.net ...
Auditors who do not perform independently will face the potential risk of losing professional
credibility and being punished with fines or imprisonment. Moreover, auditors should act ethically
in the interest of public and provide unbiased audit reports to the public, especially to those who will
make future decisions based on these audited financial statements, such as investors, employees or
lenders. It does not mean that the auditor could not behave in both parties' interest at the same time,
but when a conflict occurs between interest of public and that of management, auditors should
choose to behave independently, keep audit work fair and honest, and ensure their work assists the
public to make a right evaluation on the audited client.
Arthur Andersen partners responsible for quality control didn't stop the flawed decisions of the audit
partners since they didn't have the power to. Arthur Andersen employed a practice that allowed the
partner in charge of the audit to override a ruling of the quality control partner. The controversial
practice was accepted at Arthur Andersen since the partners were motivated by revenue generation.
Instead of the firm being focused on compliance with GAAP, the protection of public interest, and
their own reputation, they were more concerned with potential revenue loss or gain based on the
feelings of the

Big Data Has Changed Our Lives
Introduction
Background
Big data is a process in which transforming audits is conducted. Along with this, some major
challenges are also adopted in order to maintain the standards as well as to give training in the
required processes and systems. It is also said and impossible to further corroborate that around 75%
of the world's data has been initiated as well as created in the past two to three years. The actual and
well organized proliferation of the entire data has changed our lives, and the way we act as
consumers too. Therefore it is correct to mention that this era of big data helps in reshaping the
operations of the businesses and it helps in giving them greater insights as compare to the early
days. Therefore this is one of the ... Show more content on Helpwriting.net ...
This is the reason why today professionals have actually struggled to stay ahead of the cluster of
data curve. In the beginning of electronic communication, auditors were no doubt playing the catch–
up method as the volume of data generated by clients was increasing so that they can easily monitor
it properly. But on the same side the big data has given the audit professionals an opportunity in
order to mine this deluge of loaded information to easily generate maximum effect. This is the
reason why majority of the research analysts highlighted that big data along with the technology is
one of the bigger impact on auditing as compare to any other thing or issue. Whereas others report
that big data related technology is known as the actual revolutionary for the audit profession and this
is why majority of the companies is today working with technology and big data in order to change
the nature of the auditing process.
Technology based innovation for audit is the main area where professionals should focus so that
technology can be well used and performed accordingly. Technology innovation is therefore making
it possible to automatically replicate the work. Technology based innovation has also made the best
use of analytics in this field of audits in more accessible manner. This is therefore correct to state
that technology is the key

Case Study Of Rajendra K Goel & Company
EXECUTIVE SUMMARY
Rajendra k goel &co is the auditing firm which perform auditing, financial and tax services to
clients. The main objective of auditing firm follow the guidline of treasury board audit of security:
Framework of management control
Fair Security programe
Information is protected
Personnel security protected
Risk assessment
The audit team firm used the questionnaire and audit plan during preliminary survey following
elements are audited:
Security framework of management
Administrative security
Physical security
IT security
Today clients wants services of high quality and its impossible to meet this expectation. The
department which I worked was manufacturing one in which control is very important after working
... Show more content on Helpwriting.net ...
 Understanding and handling income tax laws analytically
 Preparing and filling of requirement under FEMA regulations.
 Handling task related to administration
 Handling high income tax assessment and procedure
OBJECTIVE OF STUDY
To learn about accounts
To learn accounting practicality
To understand verification of transactions
Correct true financial positions
Understand book keeping and ledgers
Auditing of transactions
Employee perspective
Rajendra k goel & co deliver long term value and quality service to client by specializing above
field of tax and finance.
Learnings to have effective audit management
Mature implementation of risk strategies

Careful analysis of fraud
Fair presentation of financial statement
Simple presentation of financial
Management responsible for integrity of business
Ideal corporate governance
Monitoring and oversight
Overcoming challenges
Communication and sharing
Policies and procedure
Reporting
Internal audit solution
Internal Audit solution is design to help companies in several data and audit related programme . It
give help to all kind of audit like internal audit , operational audit etc . Steps for audit programme is
generally start from

Audit Report On Audit Cycle Performance Essay
Introduction
Audit cycle performance consists of several stages and the basic first stages are planning and
preliminary survey in order to obtain general information on all areas and aspects of the audited
company as well as the company 's activities and strategies that can be obtained in a short period of
time. To accomplish these stages, some important points is needed including the understanding of
the entity, identifying the key areas (key control), set the objectives and scope of the audit,
determine the criteria of the audit, identify the audit evidence, prepare the preliminary survey,
organize the preparation of the detailed test program, collect and test the audit evidence, and lastly
generate the audit working papers.
Up to this point, the internal auditor has completed the work of collecting, testing, and documenting
the data and information in the form of audit working papers. The next step is to manage this data in
order in the form of audit findings. The findings of this test need to be easily and quickly understood
by the reader to then communicate with the audited entity. Preparing audit findings activity is the
final stage of conducting the exam (detailed audit examination) before entering the stage of
reporting.
The findings of the audit can be defined as an area of potential control weakness, policy violation, or
another issue that has been identified during the audit. The findings generally outline a problem that
exists, a particular situation that

Assurence
Assurance Hand Note
Professional Stage–Knowledge Level By: Shafique Ahmed–Sr. Officer (Internal Audit–BSRM)
Assurance
CA in Bangladesh www.facebook.com/cainbd
1
Assurance Hand Note
Professional Stage–Knowledge Level By: Shafique Ahmed–Sr. Officer (Internal Audit–BSRM)
CONTENTS OF ASSURANCE 01.
1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12
Preliminary of Assurance:
Assurance Engagement: Key elements of an assurance engagement: Levels of assurance Objective
of an Audit: True & Fair Why is assurance important? Why can assurance never be absolute?
Professional ethics: Basic principle governing of an audit: Threats and safeguards: Suggestion to
improve or safeguard against threat: ICAB Code
02.
2.01 2.02 2.03 2.04 2.05 2.06 ... Show more content on Helpwriting.net ...
A written report in appropriate form Assurance reports are provided to the intended users in a
written form and contain certain specified information so that the user ensures that key information
is being given and that the assurance given is clear.
2) 3) 4) 5)
1.03
Levels of assurance
a) b) Reasonable assurance engagement that is "A high, but not absolute level of assurance" ensures
to obtain sufficient and appropriate evidence. Limited assurance engagement that sufficiency and
appropriateness to obtain evidence is lower level.

1.04
Objective of an Audit:
The objective of an audit of financial statements is to enable the auditor to express an opinion
whether the financial statements are prepared, in all material respects, in accordance with an
applicable financial reporting framework.
1.05
True & Fair
True: information is accurate and conforms with reality, not false and conforms with required
standards and law. The accounts are correctly take out from the books and records. Fair: information
is free from unfairness & bias with compliance expected standards and rules. The accounts should
return the business matter of the company 's underlying transactions.
1.06
Why is assurance important?
a) b) c) d) e) Independent professional verification given to the users. Enhance confidence to the
stakeholder Enhances the credibility of the financial information. Help to prevent errors or frauds
and reduce the risk of management bias. Where problems exist

Ann Marie Case Auditing
Prior to making her decision, we believe that integrity and compliance with the law were the ethical
issues that Ann Marie must have faced. Integrity is the basic and most important value that is
required for the role as an auditor. However, when Ann Marie signed and backdated the audit
engagement she was dishonest with herself, the client, and the public. In addition, the purpose of the
law is for every audit engagement to be reviewed in detail by a different person to provide quality
information for investors and to protect the public interest. Ann Marie did not perform the detailed
review, but signed on to the audit engagement in order to fulfill the requirement for the QC
Inspection; this action leads her to violate the rule. 2. ... Show more content on Helpwriting.net ...
She even initially refused to do so because she knew it wasn't the honest thing to do. Instead, she
could have discussed the audit with the team that finished it after she left during the planning stage,
and reviewed their work to have a better understanding of the audit performed. She also could have
refused to backdate her initials many months after the report was filed which falsely indicated that
she had performed the detailed review.
3. What were the likely consequences of each alternative listed in #2 above?
If Ann Marie refused to backdate the necessary initials and signatures; first of all, she might upset
the Engagement Partner. Then, it may also lead to the result that the audit engagement will not be
qualified for the quality control inspection because of a lack of a detail review. However, by
discussing the audit with the team and reviewing their work to have a better understanding of the
audit performed, she would not violate PCAOB Auditing Standard No.3, which influences her
credibility.
4. In your opinion, who is primarily to blame in this situation (i.e., how much responsibility should
Ann Marie have for her

Essay about System Integrity and Validation
Running head: System Integrity and Validation
System Integrity and Validation
Aaron Stewart
University of Phoenix
Accounting Information Systems
ACC/542
MBAY0ZDVQ0
Yasin Dadabhoy
September 19, 2011
Preface Kudler Finer Foods has a very strong accounting information system in place but there is
room for improvement. Kudler's has taken the steps in the correct direction by implementing an
industry specific system. Computer technology only makes auditing Kudler Finer Foods easier and
more accurate. Computer assisted auditing tools and techniques CAATs is highly recommend for
Kudler finer Foods. The ability to share information with clients and auditor's ... Show more content
on Helpwriting.net ...
In the past, before computers aided in the organization of business documents, audits were
conducted on paper. Audits are performed using Computer Assisted Audit Tools and Techniques
(CAATTs) or Computer Assisted Audit Techniques (CAATs). Computer assisted audit tools and
techniques (CAATTs) is defined as the software used to enhance the auditor's productivity and used
to extract data and analysis. The second T in CAATTs refers to the techniques used to enhance the
effectiveness and efficiency of the audit. The other form of computer assisted audit tools and
techniques is CAAT, which has one t. Because this computer assisted audit has one t, the single t
represents techniques. CAATs by definition, has the same meaning as CAATTs with the exception of
enhanced auditor's productivity and extracting data and analysis (Hunton, Bryant, & Bagranoff,
2004, p. 178). Using CAATs for information technology audits consists of the auditor's following
10– steps. Each of the steps will cover a wide area of objectives, processes, and identify different
task that need to be performed. The 10– steps to using CAATs will be cover in the PowerPoint
presentation. Validating data will be accomplished by running a series of test data to ensure the
system is updating and running properly. The test data is made up by the auditor to establish that the
results received are the results the auditor is looking for. This particular type of test will be

Why Is Electronic Voting Wrong
Virtue Chike–Okeke
Junior Research Period 2
Mr. Larkin
26 October 2017. Electronic Voting Machines Moving away from electronic voting and finding an
alternate way to vote that is the most precise and secure course of action.
Voting is the process by which a person or group of people formally express their opinion. In the
U.S., a citizen must be at least 18 years for them to vote, and voting is voluntary; a person can't be
forced to vote nor can he or she force anyone person to vote because it is a crime. The laws
surrounding voting are different in each state and as such each voter is required to register in the
voting precinct in which ... Show more content on Helpwriting.net ...
Also contributing to the margin of error is the fact that many electronic machines don't keep paper
records of the votes that are inputted into the systems, and "Because many of these machines have
no paper audit trails, a large number of votes will never be counted,"(Elizabeth Weise). Also having
no paper records mean that a ballot can be hacked and changed and no one will know what the
original was and have no evidence that it was hacked. Although voting machines have advanced and
changed over the decades, many voting booth today still use outdated machines. "Security risks are
the number one danger of older technology. The older your operating system or application, the
longer the bad guy hackers have to find and exploit vulnerabilities"(Rack Blogger), while officials
are still using voting machines from 2000–2004, today.
While electronic voting machines have its fair share of dangerous internal problems, the external
problems are seem to make the internal problems seem like childs play. Some of the external
problems of electronic voting machines are as follows; physical tampering, which covers how
hackers can physically hack the machines why at these voting booth when left alone with these
machines, and the problems that those who moniter the machines might face; cyber attacks whether
from other countries or

Nextcard Case Essay
Questions:
1. Should auditors evaluate the soundness of a client's business model? Defend your answer.
The auditor's responsibility is not to evaluate a client's business model but to have a sufficient
understanding of the entity. An auditor needs a sound and comprehensive understanding of the
client's business and industry to develop valid expectations about financial–statement assertions.
2. Identify and briefly describe the specific fraud risk factors present during the 2000 NextCard
audit. How should these factors have affected the planning and execution of the engagement?
The three examples of risk factors (a) pressure, (b) opportunities, and (c) rationalizations. Nextcard's
pressure was in rapid growth by extending credit of ... Show more content on Helpwriting.net ...
3. What are the primary objectives an audit team hopes to accomplish by preparing a proper set of
audit workpapers?
The objectives an audit team hopes to accomplish by preparing a proper set of audit workpapers is
to facilitate the planning, performance, supervision of the engagement, and provide evidence
supporting significant conclusions by the auditor in accordance with the PCAOB. A record of the
evidence, samples tested and the conclusions are presented to supervisors and partners for review
4. Identify the generally accepted auditing standard violated by the E&Y auditors in this case.
Briefly explain how each standard was violated.
E&Y auditors violated their responsibility to the public and to their profession. The auditing
standards that were violated were AU 15 responsibility of the auditor to obtain sufficient evidence to
provide a reasonable basis for his opinion, AU section 339 preparation and maintenance of working
papers, AU 339.01 Principle record of work contains information and conclusions the auditors have
reached concerning significant matters in the working papers, AU 339.08 the auditor is required to
"adopt reasonable procedures for safe custody of his working papers and retain them for a period,
AU 15 was violated when Trauger requested revisions to the workpapers. AU 339, AU 339.01 and
AU 339.08 were violated with the

How To Write A Reflective Account
I responded to work emails, phone calls, messages from engagement team and clients in a timely
manner. I continuously kept engagement team informed of my work status and updated them on any
outstanding matters. I built positive relationships with clients by approaching them for help when
auditing. (e.g. I liaised with different Sales team personnel based on product lines when performing
Sales vouching.) I adapted to changes and quickly grasped new approaches of doing things. I
inquired with clients on any exceptions noted during audit fieldwork and gathered additional
evidence to support the findings. (e.g. I checked, examined group reporting package and financial
statements prepared by clients for accuracy and consistency with the audit ... Show more content on
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As an auditor, I acted in accordance to KPMG values by upholding integrity and professionalism at
work. I sought for regular feedback and advices from engagement team members on my work done
and applied it to improve my performance on the job. I proactively requested for review on my audit
work and documentation. I read through retention and current year audit files to understand client's
processes, referred to training materials and KAM guidance for the audit approaches used on control
and substantive testing. I started work at client's office around 9:30a.m. in the morning and worked
overtime only if required. I kept my documentations in the audit work papers clear and concise. I
committed to complete relevant audit sections in accordance with the instructions and deadlines set
by engagement senior. Being task–oriented, I managed to complete most of the audit sections and
work papers assigned to me despite having to multi–task when working under tight reporting
deadlines. I organised and prioritised tasks according to their urgency and importance. (e.g. I
focused on vouching and performed inquiry at the client's

Ch 19 Mini Case
Mike Stephan is a first–year staff auditor at Willis and Adams. Mike recently graduated with his
undergraduate degree in accounting and was excited about his new job at Willis and Adams. Mike
came from a smaller school that typically does not get a lot of attention from campus recruiters.
Mike was pleased to get an interview and then an offer from Willis and Adams. From the beginning,
Mike was impressed with the firm's culture and he felt that it would be a great fit for him
professionally. Throughout his junior year, he worked hard to reach out to the firm's recruiters to
demonstrate a sincere interest in the firm. In the end, Mike was one of only two students that Willis
and Adams hired from his school. Mike believed that his school's ... Show more content on
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After Mike explained the situation, Alex was silent for a long time and then finally said:
"Look, we are just going to have to eat that lost time. I just got done speaking with Dianne and she
is adamant about finishing this audit under budget. Dianne is up for promotion to senior manager
and I'm sure she doesn't want an over–budget audit right before the partners meet to decide her
promotion. Don't worry about it, Mike. Stuff happens and it was partly the client's fault anyway. Just
take as long as you need to finish the planned procedures and then put down six hours on the work
schedule."
From what Alex said, it seemed that Dianne Morris, the manager on this audit, was the one who was
applying the pressure on Alex to keep the audit under budget. But eating time just didn't feel right.
Mike hesitated and then said, "I don't know Alex. Don't you think we'd better just mark down the
actual hours?"
Alex sighed deeply and said:
"Mike I know you are new, but this stuff happens all the time. Think of it as spending a couple extra
hours on personal development. In recent planning meetings, the partners have really been stressing
the importance of not letting jobs get out of control. An over–budget audit won't look good for any
of us right before performance evaluations. Look Mike, I promise eating time is no big deal–people
do it all the time. You want a good performance eval, don't you? Let's just dig in and

System Integration and Validation
System Integration and Validation
Computer technology has advanced enough to help auditors find more efficient ways to audit. By
using different auditing techniques and utilizing audit productivity software auditors can find errors
in a business computer system faster and easier. Using this type of computer technology improves
Audit documentation and processes. Computer Assisted Auditing Techniques or CAAT's can be used
to validate data and system integrity by using different types such as testing data, integrated test
facility and parallel simulation etc. Also by integrating Audit productivity software such as
electronic working papers, groupware, and reference libraries, and document management, an
auditor's personal productivity is ... Show more content on Helpwriting.net ...
Fabricated test data is prepared and integrated into the program, it is run through the application and
the results are compared to the results that are expected to be obtained. The test deck method
depends a lot on the abilities of the auditor to anticipate and capture all deviations and exceptions.
The auditor must be able to find and use different scenarios that may arise in order to detect errors.
An auditor must be able to analyze the data appropriately and carefully so that any errors are not
overlooked. Auditors can use another technique similar to the test deck method. The test deck
method is used by not incorporating it with live data. However, integrated test facility method is
used the same way except that it is incorporated with live data and is run through the client's system
along with normal transaction processing. The last technique used is called parallel simulation. With
this technique the auditor uses audit software to reproduce a part of an application or the entire
application to test data on. The data that is run on the client's original application is used again and
run on the reproduced program and the results are compared and any errors analyzed.
Functions of Audit Productivity Software
Productivity software is a tool used to assist auditors in performing their tasks more efficiently.
Audit productivity software is useful to an auditor because it performs functions such as risk
assessment, scheduling,

The Work Experience At Deloitte & Touche, Llp As An Audit...
Over the past 10 weeks, I have worked at Deloitte & Touche, LLP as an Audit Intern. Overall the
internship was an important learning experience and invaluable in my professional development. I
was able to gain real work experience in audit and network with many people at different stages in
their careers. There were many Deloitte–sponsored intern events in addition to the regular daily
work I performed on my three engagements.
At the beginning of the internship, each intern was required to make a list of goals they hoped to
accomplish throughout the internship. We were given four categories to consider. The first area was
Leadership Effectiveness. My goals here were: be focused and committed to the engagement and
willing to overcome obstacles; maintain a professional approach, especially when representing the
organization; and keep a positive attitude and respect others. The second area was Management
Effectiveness, and my related goals were: stay within the constraints of time budgets when
managing responsibilities; continually seek feedback, formal and informal, to know how/what to
improve; and communicate clearly and often to keep team updated on progress of project. Service
Excellence was the third area, and my related goals were: understand the why, not just the how, of
assignments; learn team expectations and client's business; and maintain high–quality services using
knowledge gained from team. The last area was Marketing, Sales, and Communication. My goals
here

The North Face, Inc Case Essays
Case 5.3 The North Face, Inc
1
Auditors should not insist that their clients accept all proposed audit adjustments even those that
have an "immaterial" effect on the given set of financial statements. Because "immaterial" effect on
the financial statements will not affect the users' decisions. Therefore, auditors have to confirm if the
effects on the financial statements are really "immaterial". If there are really "immaterial",
sometimes the auditor would be forced by the clients to ignore it. So the auditor should give the
client suggestions on why they recommend for the client to make adjustments. If the client disagrees
with the adjustments, they maybe have a logical reason for why they don't want to make the
adjustments. The auditor ... Show more content on Helpwriting.net ...
And a large portion of the 9.3 millions dollars that was recorded for the consignment sales was
improper because it violated SFAS No. 48 (Revenue Recognition When Right of Return Exist). It
was not a real exchange because the two customers did not pay for their merchandises and the
transactions were not finalized until the customers resells the merchandise.
4
Audit documentation serves mainly to: (AU 339.03) a Provide the principal support for the auditor's
report, including the representation regarding observance of the standards of fieldwork, which is
implicit in the reference in the report to generally accepted auditing standards. b Aid the auditor in
the conduct and supervision of the audit. All of these two objectives above were undermined by
Deloitte's decision to alter North Face's 1997 workpapers. First, when Borden reviewing the 1997
audit workpapers, he discovered the audit adjustment that Pete had proposed during the prior year
audit to reverse the 1.64 million barter transaction. He destroyed audit evidence, prepared a new
summary memorandum and adjustments schedule reflecting the revised conclusion about profit
recognition, and replaced the original 1997 working papers with these newly created working
papers. Second, Borden relied on this assertion during the 1998 audit. Thus, the auditors reached an

Time Budget
Time Budget
Advanced Auditing
April 14, 2011
It is not only important for auditors to keep accurate and precise working papers for an audit, it is
also important for auditors to keep accurate and precise records of their time spent on the tasks
associated with an audit. "When accountants complete work without recording it as chargeable time,
potential revenue can be lost and erroneous planning and poor personnel decisions can result."
(Lightner, et. al., 1983) Hamilton Wong is one of six accountants assigned to the audit of Wille and
Lomax, Inc., a public company which sells general type merchandise, such as briefcases, leather
goods, luggage and travel accessories, and gift items, such as costume jewelry imported from ...
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After reviewing the time he has reported on his audit assignments, Hamilton Wong estimates that he
will be over budget on two of his accounts by 20 to 25 percent. The pressure for accountants to
underreport their time is a concern for many auditing firms. By portraying unrealistic expectations,
auditors feel obligated to work long hours which causes low morale, burnout, and employee
turnover. There are a number of ways management can work to discourage accountants from
underreporting time. One way is by "Preventing removal of workpapers from the fieldwork site and
preventing unsupervised after–hours work at the client's or firm's office . . ." (Lightner, et. al., 1983)
Another way is to counsel supervisors "on the importance of ensuring that staff report all chargeable
time and [supervisors] should be taught how to spot and how to prevent underreporting." (Lightner,
et. al., 1983) In addition, the audit firm can "provide its staff with an alternative to underreporting,
such as encouraging them to report problems that arise in meeting the budget." (Lightner, et.al.,
1983) "Staff should be informed of the purpose, use and importance of time budgets in firm
management and of the firm's desire to reconsider budgets that aren't appropriate for an engagement
or that are improperly prepared." (Lightner, et. al., 1983) Another suggestion is to "avoid time
budgets at the staff accountant level. When budgets

Cas 610
FINAL PAPER
CAS 610, Using the Work of Internal Auditors
Paper for ACCT 343
Auditing
Wendy Popowich
Carrie Prosser
Bachelor of Applied Business Administration – Accounting
NAIT School of Business
Submitted: October 20, 2010
Due: October 20, 2010
TABLE OF CONTENTS
Executive summary 3
Introduction 4
Limitations in changes to the ISA 610 before implementation..... 5
Format and wording changes within the exposure draft 5
Using direct assistance from internal auditors 6
Using examples in the proposed exposure draft 10
Defining objectivity and competence 11
Alternatives 11
Conclusion 12
References 13

Executive Summary The current Canadian Auditing Standard [CAS] 610 has an exposure draft that
is being reviewed currently to replace ... Show more content on Helpwriting.net ...
Format and wording changes within the exposure draft 610 When the new revised exposure draft
came out for ISA 610, the result was to bring the standard up to reflect the current organizational
structures of companies. With the new revision of the standard there was a lot more detail added to
most of the paragraphs and included examples for some of the subsections to provide more guidance
to the auditors. There were subsections of the standards where just one word was changed but the
one word change makes the difference from a suggestion to a requirement which could result in
more work needed to be done by the external auditor to make sure that they are in compliance with
the standard. When additional work is required it has a direct cost associated with it but it can also
have indirect cost or benefits as well. An example of this is when the new standard changed the
wording from "should" to "must", this results in more work for the external auditor to make sure that
they document that they followed that specific guideline which is a direct cost. But the indirect cost
or benefit can be that the auditor had done this work before and now they have to document their
work to show proof or if it wasn't done before it could have an indirect benefit as it can provide
more documented proof of how they reached their decision on the overall audit.
(International Federation of Accountants, 2010) (International Auditing and Standards

Moss and Mcadams
Moss and McAdams Accounting Firm
In the Moss and McAdams Accounting Firm also know as M and M, Bruce Palmer has just been
promoted to account manager. He has been assigned to lead and manage the Jacksonville Audit.
Zeke Olds has been assigned as one of the five accountants on the Jacksonville Audit and is known
as an innovator in regards to problem solving. The firm operates under a matrix organizational
structure which requires Palmer to share his valuable resource, Zeke Olds, with a team that is being
managed by Ken Crosby. Crosby is responsible for managing special consulting projects and has
requested that Olds also be assigned to his Springfield project. Over the course of about two months,
there were several issues between Palmer's ... Show more content on Helpwriting.net ...
Initially, he could have requested a meeting with both Crosby and Sands after the first week of
experiencing issues. This would have brought to light the potential negative impact to the
Jacksonville audit which still would ultimately impact Moss and McAdams. Palmer could have
gotten greater commitment from Crosby and ask for some type of penalty or consequence each time
there is no adherence to the agreed upon work schedule.
Living in a Matrix
According to Gray and Larson (2008), a matrix type of organization is one in which a hybrid
organization form of a project management structure is placed directly over the functional order of
the normal business operations. Typically, this type of organizational structure has two chains of
command and the project participants have to report to two separate chains of command. This type
of structure is designed to use resources efficiently. It is also intended to provide an optimal solution
while being able to accomplish multiple projects at the same time. According to Gray and Larson
(2008), there are several advantages and disadvantages to this type of organizational structure. The
advantages of this type of structure are that it allows multiple projects to go on at the same time by
sharing resources. It also allows the project managers to focus on coordinating and integrating
different units or resources that can be integrated into several functions within the organization.
Also,

Beginning The Audit Report A Essay
Beginning the Audit Report
October 25, 2007
Mr. Joe Bootwell
Executive Senior Vice–President & CFO
Apollo Shoes, Inc
100 Shoe Plaza
Shoetown, Maine 00001
Dear Mr. Bootwell,
Thank you for choosing Team D Auditing for your audit needs. This letter is to inform you on how
we plan to begin the audit process for your company. We will be performing an audit on the
financial statements for Apollo Shoes for the year ended December 31, 2007 in order to provide
reasonable assurance that the statements are presented fairly and are presented in accordance with
Generally Accepted Accounting Principles (GAAP) (Arens, Elder, & Beasley, 2012). We will begin
the audit by reviewing the statements as well as your organizational charts and the ... Show more
content on Helpwriting.net ...
We request that the company can provide us with adequate evidence necessary to perform the audit.
It is critical that we have access to information and files including the minutes, besides to be able to
inquire personnel and the observation of procedures as necessary.
We have the responsibility that if a material weakness and or a significant deficiency are discovered
in the performance of the audit, it should be communicated to the audit committee in writing
(PCAOB, 2014). The management is also responsible to adjust the financial statements to correct
material misstatements found during the audit; if the correction are not done because they are
immaterial, it should be stated as part of the representation letter were management is confirming
their responsibilities during the audit (PCAOB, 2014).
Our out of pocket expenses and fees are estimating in $200,000, which covers the hours spent
during the audit. If anything may affect this estimate we will let you know. Our fees are due when
we complete the audit (Raspante & Vono, 2014).
We are very enthusiastic to be your new auditors and we hope to fulfill your expectations. If you
agree with this agreement, please sign in the space provided; keep a copy for your records and return
us the original signed.
If you have any further questions, please do not

Sears Roebuck And Company Audit Process
Audit Process
Sears Roebuck and Company was established in 1893 by Richard W. Sears and Alvah C. Roebuck.
The company is a wholly owned subsidiary of Sears Holdings Corporation (SHLD) that has been
publicly traded on NASDAQ since 1906. As the nation's largest provider of home services, the
corporation employs 89,000 people in the United States and U.S. territories in approximately 547
full–line Sears stores. (Sears, 2017)
As internal audit, it is our duty to provide independent, objective assurance to improve the
company's operations. The internal audit activity "helps an organization accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance ... Show more content on Helpwriting.net ...
Working papers provide assurance that audit work is accurate and complete. Any issues discovered
will be discussed with managements as it occurs, prior to completion of fieldwork. The reporting
phase includes writing reports addressing results found during fieldwork, management action plans,
and an audit report. The follow–up phase is when the auditor follow–ups, in the given timeframe, on
recommendations to see if they were implanted. References
Accounting Tools. (2017). Management assertions in auditing. Retrieved from

The Ethics Of The Audit
As the wide–ranging business environment goes down, the rate of auditor litigation has increased.
Lawsuits are a continuous threat to the auditing line of work. In this paper, we present evidence on
lawsuits having a positive effect on auditors audit liabilities. It is the auditors' responsibility to plan
and complete the audit to obtain practical guarantee about if the financial statements are free of
material misstatement or if they are caused by error or fraud. A mixture of court decisions and
economic state of affairs has shaped the legal setting for the auditing line of work and the resulting
lawsuits. Even though auditors are potentially legally responsible for both criminal and civil
offenses; lawsuits have encouraged auditors to reduce their risks of legal action by instituting sound
quality control and look at procedures. The majority of the time, for litigation to arise, the auditor
must have given an unqualified audit opinion to a set of financial statements that are afterward
revealed to have material misstatements or material omissions. According to the ACCA an auditor
liability is increasingly concerning, both in terms of audit quality and the reputation of the
profession but also in terms of the cost to the industry and the barriers this creates to competition
within the audit market.
Auditors are potentially liable for both criminal and civil offenses. Criminal offenses occur when
individuals or organizations violate a government imposed law. Auditors

Financial Statements Of Business Enterprises
To be recognized, revenues must be realized or realizable and earned. The revenue–earning
activities include delivering or producing goods, rendering services or performing other activities
that constitute its ongoing major or central operations, and revenues are considered to have been
earned when the entity has substantially accomplished what it must do to be entitled to the benefits
represented by the revenues [SFAC No. 5, "Recognition and Measurement in Financial Statements
of Business Enterprises"] (Streaser, Sun, Zaldivar, & Zhang, 2014). The SEC, (Staff Accounting
Bulletin No. 104) believes that revenue is generally realized or realizable and earned when the
following criteria are met:
– Persuasive evidence of an arrangement exits
– Delivery has occurred or services have been rendered
– The seller's price to the buyer is fixed or determinable
– Collectability is reasonably ensured (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2015).
The Accounting Principal Board (APB) Opinion No. 29, "Accounting for Nonmonetary
Transactions", precludes companies from recognizing revenue on barter transactions when the only
consideration received by seller is trade credits (Knapp, 2015). This guideline was violated when
North recorded $7.8 million of trade credits as sale revenues.
As for the two large consignment sales arranged by the Katz, vice president of sales, the Statement
of Financial Accounting Standards (FAS) No. 48, "Revenue Recognition when Right of Return
Exists",

Tyco Fraud Paper
This research paper will explore the fraud at Tyco and focus primarily on accounting and auditing
issues related to the fraud. One thing worth noting about this case is that fraudulent financial
reporting was not at the core of the fraud, which was the case with majority other big frauds at the
time, such as Enron and Waste Management. On the contrary, fraud consisted of misappropriation of
assets, and fraudulent financial reporting came as a consequence of trying to hide misappropriation
of assets and the use of corporate money for personal benefit. Main character in this fraud is Mr.
Dennis Kozlowski, the CEO of Tyco. He misappropriated around $270 million through
unauthorized loans, sale of Tyco securities and undisclosed compensation. In order to conceal these
amounts, the compensation was incorrectly offset against unrelated gains. This led to violation of
GAAP and misrepresented financial statements. For example, $44.6 million of bonuses were offset
against gain from IPO of one of Tyco's subsidiaries. They have also netted the bonuses with gain on
disposal of business and gain on sale of common stock. According to ASC 718 Compensation, these
and other bonuses should have been disclosed in operating earnings and should have decreased
operating income. However, since they were offset against one–time gains, they did not have any
impact on operating income. This "hiding" of compensation occurred on several occasions – the
expenses were also netted against gain on sale

Who Was The Most Responsible For The Fall Of Enron
K1.1 – 1
Enron – Enron is partially responsible for the crisis of confidence, because they committed the fraud
via the special purpose entities. Because of the three percent rule, Enron was able to put lots of its
liabilities onto those off–balance sheet entities. Also, Enron did not have adequate financial
statement disclosures. Many of the top employees at Enron were able to "realize" an extraordinary
profit within matters of a couple months because of the fraud. Additionally, Enron abused the mark–
to–market accounting method for its long–term contracts. All of these fraudulent activities caused
Enron's profits to be overinflated.
Andersen – Although Enron committed the fraud, Andersen allowed Enron to get away with it. An
audit firm has to be independent from their client and act in the best interest of the public. For this
reason, I think that Andersen was the most responsible for the Enron crisis. Andersen could have
declined continuing their relationship with Enron as their client, considering some Andersen
representatives did not agree with Enron's "aggressive" accounting and financial reporting decisions
in the early months of 2001. Andersen also assisted Enron in restructuring some of the SPEs so they
would still be considered unconsolidated entities. Andersen not only audited Enron, but they also
went beyond the scope of what the quality audit should entail. It was also telling when personnel in
the Houston office destroyed documents related to Enron and

Audit Committee
Accounting Horizons Vol. 21, No. 2 June 2007 pp. 165–187
Auditor Communications with the Audit Committee and the Board of Directors: Policy
Recommendations and Opportunities for Future Research
Jeffrey Cohen, Lisa Milici Gaynor, Ganesh Krishnamoorthy, and Arnold M. Wright
SYNOPSIS: To contribute to the Public Company Accounting Oversight Board (PCAOB) project on
auditor communications with audit committees and boards of directors, we present in this paper a
review of relevant academic literature. We also identify promising future research opportunities for
the academic community. We speciﬁcally focus on how the communication process may affect
overall ﬁnancial reporting quality, internal controls, control environments, and external ... Show
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We present a summary of these implications in Table 1. The literature review primarily features
research published in academic accounting and auditing journals. In an effort to capture the latest
research available–as well as research on emerging topics, such as many of those precipitated by the
passage of SOX–we also include working papers submitted to major archiving services. We
searched electronic databases such as Ingenta, ABI/Inform, and American Accounting Association
(AAA) Electronic Publications using keywords or combinations of keywords related to the various
topics and subtopics discussed in this paper. We also searched Social Science Research Network
(SSRN) and scholar.google.com to identify relevant working papers. Working papers were included
on the basis of the relevance of the research to the audit communication process and on the assessed
reliability of the results and implications. The overall objective is to ensure that the information
provided is as relevant, complete, and reliable as possible.
I
1
2
For example, Section 202 of SOX requires that the audit committee pre–approve all services that the
external auditor will provide, while Section 204, among other things, requires that the external
auditor communicate to the audit committee on a timely basis such matters as critical accounting
policies and practices. To facilitate the development of

Audit Letter Example
I am writing to apply for the position of VPSG 3.2 Auditor where I can further utilize my skills,
strengths and experience. With regards to qualifications and experience, I am a Monash University
(Clayton Campus) graduate with a Bachelor of Commerce (Accounting and Finance). I am a
Certified Practising Accountant (CPA) qualified professional of CPAAustralia. I am currently
working as a VPSG 3.1 Auditor in VAGO, where I perform financial audit on the financial
information of public sector entities. Previously, I have worked in Deloitte, KPMG and various
contract positions. I have audited major private and public sector entities such as Department of
Justice and Regulation (DJR), Victorian Commission for Gambling and Liquor Regulation ... Show
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I have prioritized high risk and critical audit sections and have planned my audit in an organized and
methodical manner. For example, I prioritized the audit of Related Parties disclosure and the client's
application of streamlined reporting in 2016/17 in accordance to the updated DTF reporting
guidance while planning ahead for other audit sections based on the time allocated. By performing
reviews on my working papers prior to submission, this has allowed me to assess and amend my
working papers to ensure that all necessary information is present and has been thoroughly analyzed
and concluded according to the audit procedures set. With this approach, I have completed my
assigned audit tasks with quality in a timely manner. I then take accountability by addressing any
feedbacks received from client and audit team. With the experience on hand, I am able to exercise
my professional judgment to identify and report any emerging issues, risks and opportunities. For
example, I identified that reliance on DJR's payroll controls by smaller entities were not fully
covered in DJR's control testing. I have raised a note forward and make mention during the audit
debrief to include smaller entities as part of the DJR's testing population in 2017/18's audit. I have
promoted a culture of inquiry by sharing the knowledge I have acquired in my 6 years of auditing in
various sectors and industries. I am open to embracing

Billy's Beats Inc.
Case 11–8 Billy's Beats Inc. Billy's Beats Inc. (Billy's), an SEC registrant, is a new audit client with
a fiscal year–end of December 31, 2011. Billy's manufactures musical instruments. Billy's acquired
Little Drummer Boy Inc. (Little Drummer) in 2011 for $575 million in cash. The fair value of
significant assets acquired was determined by an external valuation specialist and included property,
plant, and equipment totaling $865 million (based on an appraisal of the market prices of similar
assets) and other assets totaling $145 million. The useful lives assigned to the property, plant, and
equipment acquired were 30 years for the plant and 15 years for the equipment. The useful lives for
the plant and equipment already owned by Billy's ... Show more content on Helpwriting.net ...
This memo was included in the audit working papers, but the working papers did not include any
additional documentation from the engagement team. Required: For both Little Drummer and
RockOut, determine whether the engagement team performed adequate and appropriate audit
procedures considering management's assumptions. (Note that your focus should be on the
substantive audit procedures performed, not the accounting treatment nor the control testing.) If the
engagement team did not perform adequate and appropriate procedures, describe what additional
procedures you would have performed.
Copyright 2009 Deloitte Development LLC All Rights

Audit Activity, Audit, And Agency Theory
Abstract
Based on a number of researches conducted by the prior papers about audit activity, audit price and
agency theory. This short paper will provide a brief review focus on whether agency theory provides
a general framework for audit pricing majorly refer to the study by Nikkinen and Sahlstron (2004).
Furthermore, this is short paper also try to make further discussion from personal perspective.
Literature review
The purpose of Nikkinen and Sahlstron (2004) study is to 'investigate whether agency theory
provides a general framework for audit pricing.' Through analysing audit price in seven countries
representing entirely different accounting and economics environment, they try to verify the
hypothesis that audit fees are determined by agency theory (Nikkinen and Sahlstron, 2004). As
suggested by the regression analysis, it confirms that there is a negative relationship between audit
fees and manager ownership and a positive relationship between audit fees and free cash flow in
several countries (Nikkinen and Sahlstron, 2004). As the overall R2is 0.78, which is suggested that
agency theory can be used, at least to some extent, to explain audit fee (Nikkinen and Sahlstron,
2004)
Discussion
According to Jensen and Meckling (1976), agency theory derives from the financial economics
literature, which postulate that firm consist of a nexus of contracts between the owners of the
entities (the principles) and manager (the agents) who are charged with using and controlling

Planning An Audit And Audit Essay
1. Planning an audit is one the most important phase in an audit because without enough planning
programme, the auditor risks taking the work blindly which increases audit risks which will lead to
forming an informed opinion on the financial statements. There are many areas in audit planning
that will themselves lead to misunderstanding or misrepresentation and many auditors have fallen
under criticism for lack of proper planning documentation. It is from the filed documentation that
inspectors can conclude that file documentation reflects the real amount of planning done.
The auditor will be able to have abroad view of the business at this initial stage, planning. It is from
this understanding or knowledge that enables the auditor to work out a work plan. This
understanding gives direction in areas to focus on which in turn influence the opinion given
depending on the fair presentation of the areas focused. The information at the planning stage is also
important in determining the level of cooperation by the client.
In audit of Elementary Plc group, the audit risks from the information provided will be on gathering
substantial information on the entire company considering it has subsidiaries. The main challenge is
that audits of the subsidiaries are carried out by other independent auditors. Establishing the amount
of work that the subsidiary auditors have done will mean inspecting all their work. While Tomos, the
chief financial officer has resigned on personal grounds,

Organizational Structure Of Ooi & Associates
Number and Size of Company Ooi & Associates is a medium audit firm. The total numbers of
employees for all the branches of Ooi & Associates are 89 staffs. There are approximately 65 staffs
including a trainee in the main branches of Ooi & Associates. There are 31 staffs in audit
department. Moreover, there are approximately 5 staffs in tax department while there are 29 staffs in
accounting department. 1.3 Organization Chart The organization chart of Ooi & Associates is as
below:– Figure 1: Organization Chart in Ooi & Associates 2.0 INDUSTRIAL FUNCTIONAL
AREA There are several industrial functional areas that include functional skills and soft skills to
evaluate the student's overall performance pertain to industrial training through various mode of
interaction with colleagues, ... Show more content on Helpwriting.net ...
It is very crucial because we have to familiar with Microsoft Excel to enhanced efficiency and
effectiveness of working process. We definitely will gain the advantages and do faster than others if
we become a computer expert. Besides, I also have to learn the corporate tax software to prepare the
tax computation. Throughout the internship in Ooi & Associates, my computer skill had
dramatically improved as I had to use the computer to finish almost all the tasks given on time every
day. 2.6 Decision Making Ability Decision–making ability is defined as the process of making
logical choices among possible alternatives. As a trainee, I did not have much ability to make
decision because I did not have enough knowledge and experiences. Nevertheless, I was given
chances to provide suggestions and discuss with them during the process of making decision.
Additionally, I also learned a lot of important knowledge from managers and seniors. For instance, I
became more aware of what information should be taken into consideration to make decision wisely.
2.7 Project

case 1 Essay
Brham S. Inocencio BSA IV–A
CASE 01 – Enron Corporation
1. List three types of consulting services that audit firms have provided to their audit clients in
recent years. For each item, indicate the specific threats, if any, that the provision of the given
service can pose for an audit firm's independence.
In the recent years, auditing firms provides the following consulting services to their clients:
a. Internal auditing
b. Design of accounting systems
c. Various types of Information Technology (IT) services
2. Briefly describe the key requirements included in the professional auditing standards regarding
the preparation and retention of audit workpapers. Which party "owns" audit workpapers: the client
or the audit firm? ... Show more content on Helpwriting.net ...
Requiring the auditing firm's professional employees to continue their education throughout their
careers
b. The FASB imposed stricter accounting and financial reporting guidelines on SPE
c. The implementation of Sarbanes–Oxley Act of 2002
d. The creation of the Public Company Accounting Oversight Board
e. Adoption of a simple rule of thumb when analyzing, recording, and reporting on business
transactions
4. The Enron debacle created what one public official reported was a "crisis of confidence" on the
part of the public in the accounting profession. List the parties whom you believe are most
responsible for that crisis. Briefly justify each your choices. In my opinion, the parties that were
responsible for the "crisis of confidence" on the part of the public in the accounting profession were:
5. As pointed out in this case, the SEC does not require public companies to have their quarterly
financial statements audited. What responsibilities, if any, do audit firms have with regard to the
quarterly financial statements of the clients? In your opinion, should quarterly financial statements
be audited? Defend your answer.
6. For purposes of this question, assume that the excerpts from the Powers Report shown in Exhibit
3 provide accurate descriptions of Andersen's involvement in Enron's accounting and financial
reporting decisions. Given this assumption, do you believe that

Evaluation Of A Strategic Business Plan
A strategic business plan follows a structured process which defines the purpose and goals of the
company, and then adds the actions necessary to reach those goals. Quality planning will provide
more recognition and commitment to the quality effort. Quality Council: The group which will
develop guidelines, measure progress and assist with implementation of the quality objectives. The
Quality Council is responsible for the growth, control, and effectiveness of total quality. Quality
Policies: Guidelines that the organization's employees and management can follow. A quality policy
states the intentions and directions of the organization with regard to the quality. A quality policy
usually has statements that indicate a company will meet or exceed customer expectations, delight
the customer, ect. Strategic Quality Goals: Goals that are specific, quantified and scheduled towards
product performance, service performance, customer satisfaction, quality improvement, or cost of
quality. Having quality goals placed in the strategic business plan indicates to all employees that
quality goals have special importance. Deployment of Quality Goals: To spread out, delegate and
assign the main strategic goals to the lower levels of the organization. Resources of Control: For
each goal, resources must be secured. Measurement of Performance: Each level of the organization
will regularly compare its progress against the goals. These quality reviews should be held in
conjunction

Cga Assignment Au1 Essay
Name: Kazi Rahman
Task: 1
Mona and Michael's friend is right, public accountants provide three different types of assurance
services. These are audit, review, and compilation services; here is a summary of these
engagements:
Audit:
Audit engagements provide a high level of assurance that financial statements present fairly in all
material respects the financial position and results of operations of the company.
Review:
Review engagements provide a moderate level of assurance that financial statements are in
accordance with appropriate criteria, in all material respects. (paragraph 8100.05 of the CICA
Handbook)
Compilation:
A compilation engagement is referred to as a related service and is not an assurance engagement.
This is ... Show more content on Helpwriting.net ...
For owner managed enterprise with a tax–minimization object where net income is consistently
nominal prescribed rate is 5 to 10% of net income before bonus. MPI materiality rate is kept at 5%
of Net income before taxes and bonus considering the following factors in addition to guidance
provided in auditing standards:
* MPI is a new client and last year the company was not audited. * Bank has outlined some
preliminary conditions for financing MPI. * MPI has been experiencing increased competitive price
pressure from super store. * Current year sales has decreased by 15% and inventory level increased
by 20%
2c
Calculation of Planned Detection Risk:
DR= AR/(IRXCR) (Here DR is Detection Risk, AR is Audit Risk, IR is Inherent Risk and CR is
Control Risk)
DR = 0.03 / (0.55 x 0.1) = 0.5454 that means Detection Risk is 55.55%
2d.i

DR= AR/(IRXCR)
DR = 0.03 / (0.45 x 0.1) = 0.6667 that means 66.67%
With the 10% decrease in IR, Detection Risk will increase from 55% to 67%. So this has an inverse
affect.
2d.ii
DR= AR/(IRXCR)
DR = 0.03 / (0.55 x 0.25) = 0.2182 that means 21.82%
With the 15% increase in CR, Detection Risk will decrease from 55% to 22%. So this has also an
inverse affect.
2e
Detection risk directly impacts the quality and amount of evidence collected. As RMM increases
with the decrease in DR. There will be following

Consumer Boycotts
Question 1: Naomi Klein, among others, is a big advocate of consumer boycotts as a means of
ensuring ethical labor conditions in the supply chains of major brands. Describe the logic by which
consumer boycotts are supposed to work.
The logic behind boycotts is to get a company or an establishment to change something about the
way they do business. For example in this article clothing brands where at the center of boycotts to
end the working conditions that where in the sweatshops that made their products. Boycotts work
because it hits a business right where it hurts, their wallets. People boycotting a company for doing
something that they see as an ethical issue will result in them not buying or using their products or
services. They will also tell their friends not to buy or use their products as well. So the company
either has to live with the reduced sales from the boycott or change they way they produce their
product. The more people that join in on a boycotts the more a boycott will be successful. An
example of a boycott is when people said they would not shop on Black Friday because they did not
like the fact that these places were opening up at 2 or 3 in the ... Show more content on
Helpwriting.net ...
However, the author argues that these audits have become increasingly ineffective. Identify and
discuss at least three reasons why these audits are becoming less effective.
Audits here in America scare some people but in less developed countries its just another obstacle in
the way from getting a shipment shipped quickly and cheap. The first reason audits are becoming
less effective is because of fraud. Auditors have to going into a factory and try to find out whether or
not that factory is using child labor and hiding it or by falsifying paper work that says they are old
enough to work. A lot of the time workers lie about conditions for fear of being

Audit Risk in the Brave New World
Audit & taxation | Audit Risk in the Brave New World | Audit Risk Model | | | 6/27/2010 |
Submitted To:
MR. Asim Khan
Submitted By
Bilal Khalid
INTRODUCTION
The audit risk model has provided a conceptual framework for auditing practice for more than 40
years. Despite practical difficulties in implementation and criticisms of its theoretical foundation,
the model has been fairly effective in helping auditors analyze risks and use that analysis to
determine the nature, timing, and extent of audit procedures (especially substantive procedures) in
audits of financial statements. The audit risk model provides a conceptual framework for the risk
assessment standards.
In recent years, auditors have tried to apply the ... Show more content on Helpwriting.net ...
These are: * ISA 315, Understanding the Entity and its Environment and Assessing the Risks of
Material Misstatements * ISA 330, The Auditor 's Procedures in Response to Assessed Risks * ISA
500 (Revised), Audit Evidence.
The requirements in these newly–issued risk standards represent significant changes to the standards
governing audits of financial statements. They enable the auditors to focus more clearly on areas
where there is a greater risk of misstatement of the financial statements. The belief is that these risk
standards will increase audit quality. This is as a result of better risk assessments through a more
detailed understanding of the entity and its environment, including internal control, and improved
design and performance of audit procedures to respond to assessed risks of material misstatements.
The improved linkage of audit procedures and assessed risks is expected to result in a greater
concentration of audit effort on areas where there is a greater risk of material misstatements.
The scope of each of the risk standards is reflected in the introduction to the standards, and can be
summarized as follows.
ISA 315
This standard provides guidance on performing audit procedures to obtain a broader understanding
of the entity and its environment, including its internal control, and on assessing risks of material
misstatement. The IAASB recognises that there may be specific considerations relevant to the audit
of small

The Importance Of Clinical Audit
The aim of the Nursing and midwifery council is to regulate nurses and midwives in England,
Wales, Scotland and Northern Ireland.(Nursing and Midwifery Council, 2016). The NMC is set to
protect the public and to represent and campaign on behalf of nurses and midwives. (Nursing and
Midwifery Council, 2016). Furthermore the NMC regulates healthcare setting and
hospitals,regulates healthcare assistants and also set staffing level to ensure high quality of care the
first time round for service users.(Nursing and Midwifery Council, 2016).
Clinical Audit was introduced to the NHS in 1993. The 1997 White Paper The New NHS reinforced
the position of Clinical Audit as an essential element of professional practice in the health service.
(Dartford and Gravesham NHS trust, 2017).Clinical audit is a way to find out if healthcare is being
provided in line with standards and care providers and patients know where their service is doing
well, and where there could be improvements.Clinical audits play a part in implementing clinical
standards,clinical guidelines and evidence based medicines.The NHS England however defines
clinical audit as a way to find out if healthcare is being provided in line with standards and let's care
providers and patients know where their service is doing well, and where there could be
improvements. (NHS England, 2016) The aim of clinical audit is to allow quality improvement to
take place where it will be most helpful and will improve outcomes for service users

North Face
Assignment 2: North Face
Auditors are faced with the very difficult task of insuring the public, that in their opinion, the
financial statements of their clients are accurate and free of any material misstatements. The
problem is that materiality is a subjective figure. In the North Face case an immaterial revenue
recognition entry ended up being material when compounded with additional misstatements.
North Face was the perpetrator of the intentional misstatements but they were concealed by the
Deloitte audit advisor, Richard Fiedelman. Fiedelman allowed additional non–recognizable revenue
to be posted and altered/replaced the original working papers that reported the original material
misstatement. (Knapp, Rittenberg, Johnstone, & ... Show more content on Helpwriting.net ...
(Public Accouniting Oversighe Board, 1972) Fiedelman violated the due professional care standard
when he allowed the misstatement and margin recognition to be posted. The misstatement was
already noted but he himself should have been aware that the margin was not permitted and that the
misstatement should have been corrected. It is also concerning that the increased sales from $90,000
to $3.9 million was not investigated more thoroughly, again indicating Fiedelmans lack of due
professional care. Fiedelman also violated AU 326 Evidential Matter. With the violations of so many
auditing standards the SEC had no other choice but to sanction Fiedelman. (Knapp, Rittenberg,
Johnstone, & Gramling, 2012)
If there is no punishment for altering working papers auditors would fear no repercussions and they
would alter the papers whenever they wanted reducing the public's assurance of financial statement
accuracy
SEC's Punishment
The SEC punished Fiedelman by suspending him from being involved with audits of SEC clients for
three years. 2. Take a position on the severity of the SEC's punishment of Richard Fiedelman of a
three year suspension on being involved in the audits of SEC clients, support your position. The
punishment was fair. The responsibility of an auditor is to insure financial statement users that they
are free of any material misstatements. In this case Fiedelman made a conscious choice to allow

The Financial Audit Of The World 's Financial Audits
The majority of the world's financial audits are dominated by four major audit firms, which are
known as the "Big 4" (PricewaterhouseCoopers, Ernst & Young, KPMG, and Deloitte). Prior studies
suggest that these firms, on average, provide higher quality audit services and also exhibit a fee
premium in comparison with their non–Big 4 audit firms; however, it is questionable that whether
all these Big 4 audit firms are the same and that whether there are differences in audit quality within
the Big 4.
In term of total audit fee dollars, PwC maintains its leadership position among the Big 4 (Appendix
A, table 1), followed by Deloitte, Ernst & Young and KPMG. In 2014, PwC generated $15 billion
from its audit service – 44% more than those earned by KPMG. PwC also ranked as the most
prestigious accounting firm (Appendix A, table 2) in 2015 according to the Vault's annual
Accounting Survey as reported in table 2, followed by Ernst & Young, Deloitte and KPMG.
Following qualitative responses are also taken during the Vault's survey to describe their perception
of firms other than their own: "Most prestigious of the Big 4" "Very aggressive firm but over–
promises in the marketplace" "Doesn't seem to care about audit anymore" "Overworking employees
beyond every other firm" "Not a good work/life balance" "Big 3's kid brother" "Least prestigious of
the Big 4". These responses indicate potential variations within the Big 4 firms based on the outside
perception of a firm.
In this study, I

Personal Statement : O And R Company
Good afternoon everybody! It is my honor to be here to present as a member of group B.
Slide No.12
I would like to talk about some significant background information about our auditor –Harvey
Bizarre in O and R Company.
Harvey Bizarre has been the auditor partner on the account for the past seven years. He is
approaching his retirement, has been focusing less on his clients and directing most of his attention
to transitioning to retirement mode. He also purchased a beach house in South Hampton where he
has spent most of his time. He directs work on his clients from the beach and he reviews work by
computer while sitting in his living room and also enjoy watching MSNBC.
As an auditor, he is pretty lazy, he did not do what he supposed to do. According our textbook, the
auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether caused by error or fraud.
I understand that he is excited to embrace his wonderful retirement life, but as long as he still being
an auditor partner, he should do his duty.
Slide No.13&14
O' Conner and Reilly started to concern about these matters, then they had a meeting with Bizarre to
assess the level of exposure that this matter presents.
Bizarre indicated that the lack of separation of duties in the disbursement area was the cause of the
auditors choosing a substantive approach and achieve a high level coverage.
As we can tell, O and R

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