Auditing Essays

  • Skepticism In Auditing

    825 Words  | 4 Pages

    It is important to the external auditors to maintain skepticism and professional due care in doing auditing. However, the level of skepticism of an auditors should not be decreased even though the level of fraud risk in the management was assessed to be low. If auditors have less skepticism and suddenly fraud was found in the management, hence it will caused auditors to do more audit procedures that is mean more costs to incur. Therefore, we recommend that, every auditors need to maintain their skepticism

  • Importance Of Internal Auditing

    871 Words  | 4 Pages

    Internal auditing is an activity intended to add value, also improve an organization's operations. The activity of the internal audit is independent, objective assurance, and consulting having an independent and objective function that challenges management's assumptions in a healthy way. To assess and improve the effectiveness of risk management¬, control, and governance processes, a methodical, disciplined approach is brought for an organization with help of internal audit to achieve its objectives

  • Ethical Issues In Auditing

    1806 Words  | 8 Pages

    Introduction Auditing is a systematic process of objectively obtaining and evaluating evidence to ascertain the degree of correspondence between the assertions and communicating the results to interested users. Whereas, auditors are the person who conducts the auditing procedures to obtain reasonable assurance that the financial statement are free from material misstatement, whether cause by the fraud or error. Although ISA 240 recognized that the auditor may fail to detect material misstatement

  • The Importance Of Internal Auditing

    724 Words  | 3 Pages

    Introduction What is Internal Auditing? What is the scope of Internal Auditing for companies? Why is Internal Audit important? How can an effective Internet Audit assist management to improve companies’ performances? (IIA, 2014 P.2) In general, the related business theory two factors of exploration on the identity organizational performance. The first factor is an economic tradition, the significance of external market elements in evaluating organizational performance. The second factor is base

  • The Importance Of Auditing Process

    741 Words  | 3 Pages

    Critically, auditing process provides necessary information about a wide variety of related subjects that are needed by the different categories in their capacities as the financial books' users, according to which proper decisions are taken. The importance of both studying and assessing the role of this profession has recently been increased, particularly with regard to the quality of information it provides for the different users. Nevertheless, the need for such a vital process (i.e Auditing) is mainly

  • Objectives Of Internal Auditing

    957 Words  | 4 Pages

    This GR8 Prospects Ltd charter sets out the setting, purpose, authority, responsibility, status and authority of Internal Auditing within the company, and it outline the scope of the internal audit work. The primary objective of internal audit activity is to provide independent, objective assurance and consulting services designed to add value and improve the organisation’s operations; it also helps the organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate

  • Shortcomings Of Internal Auditing

    1587 Words  | 7 Pages

    Internal auditing refers to an examination of a company's activities or products conducted by the company's own staff. An individual that is selected to perform an internal audit is called an internal auditor. Associations of all intents, purposes and sizes utilize internal auditors. Significant organizations regularly have extensive audit staffs. Furthermore, many little associations employ inner auditors to help audit and enhance operations. Notwithstanding size, the department of internal auditing

  • Structural Role Of Auditing In Accounting

    710 Words  | 3 Pages

    The role of auditing is to have an unbiased individual look at the financial statements to confirm that the financial reports that have been issued by the clients are following the rules of GAAP, and if they are not following GAAP, an opinion needs to be stated saying that the financial statements are not in accordance to GAAP. One structural feature of the accounting profession is auditor offering more services other than just an audit. Accounting firms today are focusing on offering more and

  • Internal Auditing Case Study

    1607 Words  | 7 Pages

    effected by an entity board of directors, Management and other personnel designed to provide a reasonable assurance regarding the achievements of objectives primarily directed at improving internal controls. Much of the theory underlying internal auditing is derived from management consulting and public accounting

  • Reflection On Auditing Cash Transaction

    820 Words  | 4 Pages

    Jan 12: I started auditing cash transaction of a property management company located in Fresno. There were petty cash, operating cash account, saving account, and reserve account. To investigate fraud or material misstatement, I firstly checked to verify the balance of each cash account and the balance of each confirmation from the bank. I also examined client’s year-end balance of bank reconciliation and book cash balance for the end of the year. If the balance did not tie together, I created work

  • Pros And Cons Of Bank Concurrent Auditing

    1011 Words  | 5 Pages

    DISCUSSION Bank Concurrent Audit is a kind of internal audit where auditor responsibility is to review and correct bank internal control system. In concurrent audit, the auditor stays in branch for whole month like other branch employee and does auditing. Bank allots a separate PC to them to do their work. Since he is recruited by HO, he work with Branch Manager and he doesn’t report to the Branch Manager To any auditor, most important challenge is that he stays in branches and do audit of branch

  • Importance Of Auditing Quality

    1142 Words  | 5 Pages

    The Importance of Auditing Quality Audit quality is critical for financial markets to function smoothly and importance of audit quality in the audit process outputs, represented by the auditors ' report, which a lot of external users relied upon in the decision-making quality, so the quality of the audit is a common interest to all users of the audit process , including references, companies and administrations, associations and institutions the organization of the profession and creditors. In addition

  • Importance Of Auditing

    755 Words  | 4 Pages

    information more difficult to be understood. In order to solve the gap, more transparency of the entity, its financial statements and its audit can deal with key risks in financial reporting and auditing. Additional information disclosed especially in operating, financial, accounting, managerial and auditing areas can narrow the information gap. There also strengthens that auditor’s further information can increase a degree of credibility. Conversely, such information provided by

  • Role Of Professionalism In Auditors

    1272 Words  | 6 Pages

    INTRODUCTION Should the audit firms continue with self-regulating or should the government intervene by implementing the mandatory rotation of audit firms? This question is influenced by the increasing public’s concern about the conduct of professional auditors. Currently firms are self-regulating but if the government intervenes, the public might be at ease. Auditors face many ethical dilemmas and the way they resolve these dilemmas results in their professionalism being questioned.   There

  • External Audit Case Study

    2075 Words  | 9 Pages

    Detection of Fraud in External Audit Introduction: Financial statement users such as investors, regulators and other stakeholders expect external auditors to detect frauds in financial reports of organizations. There are various auditing standards and guidelines issued by various regulatory authorities in order to outline responsibilities of an auditor in detecting frauds. Still, we had corporate downfall of companies like Enron(2001) who was awarded by Fortune Magazine as “America’s Most Innovative

  • Senior Management Case Study

    899 Words  | 4 Pages

    For example, Mark, Hal, Brenda and Gail know about a substantial number of old stock and past due records. By eliminating this data which was found during the audit, would lead them to be part of the group to this unlawful action and dishonor the auditing profession. Brenda and Hal wish to deny these outcomes from Mark’s report to keep their rewards and the significant image of the association. Mark must pick whether to forbid results and abuse the Institute of Internal Auditing's Code of Ethics or

  • Boeing Whistleblowing

    902 Words  | 4 Pages

    Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Name University Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Similar to other public companies, Boeing intends to comply with the Sarbanes-Oxley Act's (SOX) internal control mandates. To ensure that its internal audit committee sufficiently handled all requirements, Boeing contracted with PricewaterhouseCoopers (PwC) auditors for additional support. In January

  • Internal Audit Literature Review

    1719 Words  | 7 Pages

    audit effectiveness. The factors being, the Institute of Internal Auditing standards along with characteristics of the internal audit, quality internal audit and internal audit theories. 1. Institute of Internal Auditors Standards along with characteristics of the internal audit team 1.1 Compliance with standards Compliance with Institute of Internal Auditing Standards has great influence on the effectiveness of internal auditing, therefore when complied with these standards the effectiveness of

  • Auditor Case Study

    848 Words  | 4 Pages

    of audit can be measured by two formative indicators which are (1) reputation of auditor that is the public perceptions about the past performance of auditor in term of audit quality and the standards of professional conduct that are consistent in auditing process, and (2) industry specialist auditor who is often assigned to specific industries becoming very skillful to identify and figure out the problems of specific industry audit so as to give out the result in a high quality audit. According to

  • Role Of Internal Control In Public Institutions

    1477 Words  | 6 Pages

    control systems help ensure that there is proper governance in government institutions (IIA, 2006). Accordingly, Lin and Rao (2009), concludes that internal controls may influence the auditing practices of the organization such that it would help strength and eliminate any weaknesses inherent in the institutions auditing. Such internal controls contribute in the determination of the