Professional accountants are required to comply with the fundamental principles of APES 110 code and apply a “conceptual framework approach” to determine their compliance with the fundamental principles whenever they know that circumstance or relationships may compromise their compliance. While the onus is on the professional accountant to do this, the bulk of APES 110 code of ethics describes how the conceptual framework applies in specific situations, for example when receiving gifts or other inducements form a superior may threaten corporate accountants objectivity. Like the FIA code, the APES 110 provides guidance for the more common but certainly not all practice situations. in all the other instance, once a threat is identified, the APES 110 requires a professional accountant to evaluate the significance of the threat and if the treat is insignificant, no further evaluation is required, or if the threat is significant than consider whether safeguards could eliminate or sufficiently reduce the threat to an acceptable level. Despite the principles vs. rule argument, the APES code of ethics does contain de facto rules, in several instance the code states that the threat are so significant that no safeguards can be applied to reduce or eliminate treats to an acceptable level for example, an audit team member could not own
Accounting policy efficiency and reliability Target Corporation’s accounting policy is both efficient and reliable. However, in relation to the ratios discussed earlier, the use of estimates accounting policy is one that may require additional attention. This policy requires management to make estimates and assumptions affecting reporting amounts in the consolidated financial statements which can link to the payout ratio, the return on assets ratio (ROA), and also the earnings per share ratio (EPS). By comparing the estimates, management makes in comparison to the actual numbers presented in the statement, it would support us to make reflections on numbers that look unusual. All three ratios connect to the assertion accuracy since their amount
Auditor Independence Auditors provide independent third-party opinion on the financial statements of a company. The independence of these auditors must be safeguarded during each engagement. The reliability and validity of an opinion rely on the independence of the auditor. There are times when the independence of the auditor is interfered with by malicious parties to safeguard with their own interests. Auditor independence can be referred to as the lack of hidden agendas and personal interests among parties that may affect the auditor’s objectivity (Thibodeau, Ramsay, Louwers, Sinason & Strawser, 2015).
Professional skepticism depends on the personal behavioral actions. The need for professional skepticism in an audit cannot be overemphasized. Professional skepticism is an essential part of the auditor 's skill and is very closely interrelated to the concept of auditor independences and professional judgement and contributes to audit quality. In addition to professional skepticism is important and required throughout the audit in engagement acceptances, identifying and assessing risks of material misstatement, designing the nature, timing and extent of further audit procedures that are responsive to assessed risks of material misstatement, and evaluating audit evidence, and forming an opinion on whether the financial statements are prepared, in all material respects, in accordance with the application financial reporting framework.
The first article reviewed was Accountability, Transparency, and Citizen Engagement in Government Financial Reporting. The abstract discusses the accountability and transparency needs from the public view and how the Federal Financial Accountability and Transparency Act (FFAFA) respond to those needs. Also discussed are the rewards for transparency and tools utilized to increase transparency in all levels of government. Citizens are requiring fiscal accountability and transparency at all levels of government.
Question: 1 Yes there is an exception, as there is some exception in the report, this means that its unqualified report. There are other types of reports: -Qualified opinion, when one or more items in the financial statement are not following the GAAP -Adverse opinions when the financial statements are not fairly presented according to GAAP -Disclaimer of opinion: when they are not able to determine an opinion due to a very significant switch in the way of preparing the financial statement without any consideration to GAAP …………………… ………………………………. Question: 2
The statutory audits in European Union are performed based on these standards and the European court of auditors performs its audits in compliance with the IFAC. The ISAs are as follows; 1- Respective responsibilities – These provide the standards for the objectives and responsibilities of auditors. Their expected involvement in the company’s internal control over financial reporting.
Accountants are often privy to private and sensitive information about their clients, such as bank account numbers. It is very important that the trust between an accountant and their clients are not abused as accountants have a good deal of power in regard to their clients. It is also important that the industry itself is not condemned as an unethical industry as it could potentially danger business for all accounting firms. Poor ethics in accounting practices could result many negative consequences. The first general result is a lag in the business.
Particularly well experiences accountants work with AIS means to check the high-level accuracy of company financial transactions and to keep the records in safety manner. To make financial statement easiest way and easy to understand for all of them. AIS is one of the real-time application processes. The Data will be included in the AIS; it depends on the Nature of the Business. It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information.