Difference Between IASB And FASB conceptual framework Ro'ya Abd Elhafez
This paper clarifies the difference between the conceptual framework issued by IASB and issued by FASB, as many differences between them have been shown.
Conceptual Framework for Financial Reportingreskino1
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Describe the usefulness of a conceptual framework and the objective of financial reporting.
Identify the qualitative characteristics of accounting information and the basic elements of financial statements.
Review the basic assumptions of accounting.
Explain the application of the basic principles of accounting.
Difference Between IASB And FASB conceptual framework Ro'ya Abd Elhafez
This paper clarifies the difference between the conceptual framework issued by IASB and issued by FASB, as many differences between them have been shown.
Conceptual Framework for Financial Reportingreskino1
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Describe the usefulness of a conceptual framework and the objective of financial reporting.
Identify the qualitative characteristics of accounting information and the basic elements of financial statements.
Review the basic assumptions of accounting.
Explain the application of the basic principles of accounting.
1.)Four Types of Audit Report by Independent Auditors
2.)The Steps to be Done by the Auditors Before They Receive New Engagement With Clients
3.)The Contents Emphasis in the Audit Engagement
Attestation risk is limited to a low level in which of the following e.docxbickerstaffinell
Attestation risk is limited to a low level in which of the following engagement(s)?
Both examinations and reviews.
Examinations, but not reviews.
Reviews, but not examinations.
Neither examinations nor reviews.
2.
The auditors\' report may be addressed to the company whose financial statements are being examined or to that company\'s:
Chief operating officer.
President.
Board of Directors.
Chief financial officer.
3.
As compared with the US public company audit report, the international audit report:
Is shorter in length.
Includes enhanced explanation of the audit process.
Includes the name of the partner and managers on the audit, while the US report includes only the CPA firm name.
Is dated as of year-end, whereas the US report is dated as of the last date of significant field work.
4.
When a Statement Auditing Standards uses the word \"should\" relating to a requirement, it means that the auditor:
Must fulfill the responsibilities under all circumstances.
Must comply with requirements unless the auditor demonstrates and documents that alternative actions are sufficient to achieve the objectives of the standards.
Should consider whether to follow the advice based on the exercise of professional judgment in the circumstances.
May choose to change responsibilities relating to various professional standards that remain under consideration.
5.
Which of the following is explicitly included as a part of the description of management\'s responsibility in an unmodified audit report?
Management is responsible for making a judgment on which misstatements are material vs. immaterial.
Management is responsible for providing auditors with all relevant evidence.
Management is responsible for the design, implementation, and maintenance of internal control.
Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures.
Solution
Answer:1 Â Â Examinations, but not reviews
Answer: 2 Board Of Directors
Answer:3 Includes enhanced explanation of the audit process.
Answer: 4 Must comply with requirements unless the auditor demonstrates and documents that alternative actions are sufficient to achieve the objectives of the standards.
Answer: 5 Management is responsible for the design, implementation, and maintenance of internal control.
.
Session 1 Module 2INTRODUCTION TO AUDITING .docxklinda1
Session 1 Module 2
INTRODUCTION TO AUDITING
1
LEARNING OBJECTIVES
After this module you should be able to:
Define auditing
Differentiate between different levels of assurance
Appreciate different audit opinions (covered in depth in session11)
Differentiate between the different role of the preparer of financial statements and the auditor.
Explain the reasons for the demand for audit and assurance services
Appreciate the Corporations Act requirements for company audits
Explain the audit expectation gap.
These are the objectives that students are expected to understand and be able to explain and apply.
Students will only be assessed within the learning objectives provided for each module of the course.
2
AUDITING AND ASSURANCE DEFINED
An audit is an assurance engagement defined as ‘an engagement in which an assurance practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria.’
This is a definition of an audit highlighting the main parties involved and their roles
3
1-4
Diagram of assurance engagement
4
*Comment on : main parties and their roles
Jaq (J) - add figure 1-1
1-5
Five elements ofassurance
engagement
Three-party relationships:
assurance practitioner (auditor)
responsible party (preparer)
intended user
Subject matter
Suitable criteria
Sufficient appropriate evidence
Written assurance report
Audit engagement has 5 elements
These are explained on following slides
5
AUDITING AND ASSURANCE DEFINED
‘intended users’ - the people for whom the auditor prepares their report.
Example: shareholders, creditors, employees
‘responsible party’ - the person or organisation responsible for preparing the financial statements. Example: company management
‘subject matter’ – that which the auditor is expressing a conclusion on. i.e. financial reports
‘criteria’ – the rules or principles by which the subject matter is being evaluated. i.e. Accounting standards and interpretations and Corporations laws
Comment on explanations of terms
6
AUDITING AND ASSURANCE DEFINED cont’d.
Sufficient appropriate evidence
The quantity and quality of evidence the auditor requires in order to express a conclusion on the subject matter
*Written assurance report
Written report from the auditor expressing the auditor’s conclusion on the subject matter
Comment on explanations of terms
7
DIFFERENT LEVELS OF ASSURANCE
AUDITORS MAY PROVIDE VARYING LEVELS OF ASSURANCE WHEN CONDUCTING ASSURANCE ENGAGEMENTS.
Reasonable assurance
Limited assurance
No assurance
There are 3 levels of assurance which are described on next slide
8
DIFFERENT LEVELS OF ASSURANCELEVEL OF ASSURANCE
EXAMPLE
THE ASSURANCE EXPRESSIONREASONABLE
Highest level of assurance but not absolute assurance on the reliability of the subject matterFinancial Statement AuditThe auditor has conducted sufficient tests and.
Rules-based accounting is basically a list of detailed rules that mu.pdfanjalikatrust
Rules-based accounting is basically a list of detailed rules that must be followed when preparing
financial statements. Many accountants favor the prospect of using rules-based standards,
because in the absence of rules they could be brought to court if their judgments of the financial
statements were incorrect. When there are strict rules that need to be followed, the possibility of
lawsuits is diminished. Having a set of rules can increase accuracy and reduce the ambiguity that
can trigger aggressive reporting decisions by management. The complexity of rules, however,
can cause unnecessary complexity in the preparation of financial statements.
Principles-based accounting such as generally accepted accounting principles (GAAP) is used as
a conceptual basis for accountants. A simple set of key objectives are set out to ensure good
reporting. Common examples are provided as guidance and explain the objectives. Although
some rules are unavoidable, the guidelines or rules set are not meant to be used for every
situation. The fundamental advantage of principles-based accounting is that its broad guidelines
can be practical for a variety of circumstances. Precise requirements can sometimes compel
managers to manipulate the statements to fit what is compulsory. The problem with principles-
based guidelines is that lack of guidelines can produce unreliable and inconsistent information
that makes it difficult to compare one organization to another.
When contemplating which accounting method is best, it must be made certain that the
information provided in the financial statements is relevant, reliable and comparable across
reporting periods and entities. Increased discussion has pushed accountants towards principle-
based accounting, but it is recognized that the method needs to be modified to make it more
effective and efficient.
Assessing the materiality of the errors, direction provided by the Securities and Exchange
Commission (SEC)
One rule of thumb in particular suggests that the misstatement or omission of an item that falls
under a 5% threshold is not material in the absence of particularly egregious circumstances, such
as self-dealing or misappropriation by senior management. The staff reminds registrants and the
auditors of their financial statements that exclusive reliance on this or any percentage or
numerical threshold has no basis in the accounting literature or the law.
The materiality of the errors, direction provided by the Sarbanes-Oxley Act (SOX) provides that
what would be material to the reasonable investor when making an investment decision in the
company’s securities. Usually, this is 5 percent of the company’s pre-tax net income, but may be
different when the company has losses or low profit levels; both quantitative and qualitative
aspects must be considered. It is preferable if the external auditor agrees with management’s
determination of materiality, so early discussions should be held. The external auditor may
indicate th.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
3. Parts of the Standard Unqualified Audit Report 1. Report title 2. Audit report address 3. Introductory paragraph 4. Scope paragraph 5. Opinion paragraph 6. Name of CPA firm 7. Audit report date
4.
5. Conditions for Standard Unqualified Audit Report 1. All financial statements are included. 2. The three general standards have been followed in all respects on the engagement. 3. Sufficient evidence has been accumulated to conclude that the three standards of field work have been met.
6. Conditions for Standard Unqualified Audit Report 4. The financial statements are presented in accordance with generally accepted accounting principles . 5. There are no circumstances requiring the addition of an explanatory paragraph or modification of the wording of the report.
7. Four Categories of Audit Reports 1. Standard unqualified 3. Qualified 2. Unqualified with explanatory paragraph or modified wording 4. Adverse or disclaimer
8.
9. Sarbanes-Oxley Act This Act requires the auditor of a public company to attest to management’s report on the effectiveness of internal control over financial reporting. PCAOB Auditing Standard 2 requires the audit of internal control to be integrated with the audit of the financial statements.
10. Sarbanes-Oxley Act Combined Report on Financial Statements and Internal Control Over Financial Reporting 1. Introductory paragraph 2. Scope paragraph 3. Definition paragraph 4. Inherent limitations paragraph 5. Opinion paragraph
11.
12. Unqualified Report with Explanatory Paragraph 1. Lack of consistent application of generally accepted accounting principles 2. Substantial doubt about going concern 3. Auditor agrees with a departure from promulgated accounting principles 4. Emphasis of a matter 5. Reports involving other auditors
13. Substantial Doubt About Going Concern 1. Significant recurring operating losses or working capital deficiencies. 2. Inability of the company to pay its obligations as they come due. 3. Loss of major customers, the occurrence of uninsured catastrophes. 4. Legal proceedings, legislation that might jeopardize the entity’s ability to operate.
14. Auditor Agrees with a Departure from a Promulgated Principle The auditor must be satisfied and must state and explain, in a separate paragraph or paragraphs in the audit report, that adhering to the principle would have produced a misleading result in that situation.
15. Emphasis of a Matter Under certain circumstances, the CPA may want to emphasize specific matters regarding the financial statements, even though the CPA intends to express an unqualified opinion.
16. Reports Involving Other Auditors 1. Make no reference in the audit report 3. Qualify the opinion 2. Make reference in the report (modified wording report)
17.
18. Departures from An Unqualified Opinion 1. Scope limitation 2. GAAP departure 3. Auditor not independent
19. Qualified Opinion A qualified opinion report can result from a limitation on the scope of the audit or failure to follow generally accepted accounting principles.
20. Adverse Opinion It is used only when the auditor believes that the overall financial statements are so materially misstated or misleading that they do not present fairly the financial position or results of operations and cash flows in conformity with GAAP.
21. Disclaimer of Opinion It is issued when the auditor is unable to be satisfied that the overall financial statements are fairly presented.
22.
23. Materiality A misstatement in the financial statements can be considered material if knowledge of the misstatement would affect a decision of a reasonable user of the statements.
24. Levels of Materiality Amounts are immaterial. Amounts are material but do not overshadow the financial statements as a whole. Amounts are so material or so pervasive that overall fairness of the statements is in question.
25. Relationship of Materiality to Type of Opinion Materiality Level Significance in Terms of Reasonable Users’ Decisions Type of Opinion Users’ decisions are unlikely to be affected. Immaterial Unqualified Users’ decisions are likely to be affected. Material Qualified Users’ decisions are likely to be significantly affected. Highly material Disclaimer or adverse
33. More Than One Condition Requiring a Departure or Modification The auditor is not independent. There is a scope limitation. There is a substantial doubt about the company’s ability to continue as a going concern. There is a deviation in the statements’ preparation in accordance to GAAP.
34. Number of Paragraphs in the Report Standard unqualified 3 Unqualified with explanatory paragraph 4 Unqualified shared report with other auditors 3 Qualified – opinion only 4 Qualified – scope and opinion 4 Disclaimer – scope limitation 3 Adverse 4 Type of Report
35.
36. Impact of E-Commerce on Audit Reporting Under auditing standards, the auditor has no obligation to perform any procedures to corroborate the other information. Most public companies provide access to financial information through their home Web page . Auditing standards note that electronic sites are not considered “documents.”
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