Auditing Essays

  • Professional Scepticism In Auditing

    860 Words  | 4 Pages

    Professional scepticism is an important part of auditing as it necessitates the auditor exercising their qualified judgement in dealing with occurrences and circumstances of a countless number. (Auditing and Assurance Standard Board, 2012). Since the global financial crisis, there has been increasing importance placed on applying professional scepticism and many auditors have been criticised for not using scepticism in their valuation and assessments of factors like going concern issues, fair value

  • Enron Auditing

    1591 Words  | 7 Pages

    the auditors. The biggest audit fail of Enron Corporation not only led the company towards declaring bankruptcy but also dissolved one of the five big professional services companies, the Arthur Anderson. However, it may not be fair to blame the auditing profession entirely for the fall of a company. In the case of Enron, the chief financial officer himself concealed

  • Professional Skepticism In An Audit

    1174 Words  | 5 Pages

    Independence in mental attitude concerns the auditor’s state of mind. It deals with inappropriate biases when auditing a firm. Whereas, independence in appearance, is avoiding the circumstance that makes well informed third parties believe that the auditor is not truly independent. Furthermore, independence in appearance lowers the prospect for an auditor to act

  • 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

  • International Professional Practices Code Of Ethics

    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

  • Tenkey Book Company Physical Inventory Fraud Case

    291 Words  | 2 Pages

    Inventory fraud involves the theft of physical inventory items and the misstatement of inventory records on a company 's financial statements (http://smallbusiness.chron.com/detect-inventory-fraud-34321.html)/ The AICPA generally accepted auditing standards . Perpetrators will commit this by simply taking the inventory from the company premises without touching the books and records, manipulating the inventory records, recording the stolen item as sales, or by stealing the purchase item before it

  • Worldcom Case Study

    902 Words  | 4 Pages

    1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million

  • Pro Forma Advantages

    552 Words  | 3 Pages

    Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and

  • Zzzz Best Company Case Study

    723 Words  | 3 Pages

    Case # 6: 1.9 ZZZZ Best Company, Inc. 1. AS 5.14 AU 316.02-.04 Consideration of fraud in a financial statement. Auditors have responsibility to perform the audit and check the authenticity of the financial statements. Auditor should take into account the risk of fraud in a financial statement from management improper assertions. However, in this case the audit company ignored to examine ZZZZ Best’s financial statements. ZZZZ Best report its earning as billings in excess of costs and forecast revenue

  • Case Study: Verizon's Board Of Directors

    913 Words  | 4 Pages

    Verizon’s Board of Directors oversees all auditing activities and they implement the code of ethics for all financial officers. Verizon has at least three members for their Audit Committee, which includes independent Directors who need to be financially literate. Also, the Committee Chair must have accounting or financial management expertise and at least one member of the committee must be a financial expert. The Board of Directors will choose the Committee members by their qualifications and are

  • Trust To Turner Case Summary

    877 Words  | 4 Pages

    committed. The Supervisor’s trust given to Turner was a fatal flaw in the internal controls set in place to prevent this from happening. Not periodically changing passwords, and rotating task between particular employees was another issue. Proper auditing of documents was another and last issue involved with this fraud scheme. b) For those components of the business process that were performed incorrectly, fully explain what should be done to correct each process, a. Trust is a key component in business

  • Transnet's Code Of Conduct Analysis

    798 Words  | 4 Pages

    According to Section 1 of the Auditing Profession Act, reportable irregularity is defined as, any unlawful act or omission committed by any person responsible for the management of a corporation, who has caused or likely to cause material financial loss of the entity or stakeholders, fraudulent of amounts to theft, represents a material breach of any fiduciary duty. (independent regularity board for auditors, 2015) Laws and regulations Ethics and business conduct plays a significant role in all professional

  • Essay On Auditor Skepticism

    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

  • SAS 115 Week 2 Essay

    494 Words  | 2 Pages

    This memorandum highlights significant portions of Statement on Auditing Standards (SAS) No. 115 Communication of Internal Control Related Matters Identified in an Audit and answers some questions frequently asked by accountants about SAS 115 ("The American Institute Of Certified Public Accountants", 2015). SAS 115 Highlights Here are some highlights of SAS 115. Applicability (SAS 115, 2015, para. 01). Definitions. A material weakness (SAS 115, 2015, para. 06). A significant deficiency (SAS 115

  • Expectation Gap In Auditing

    1664 Words  | 7 Pages

    1. What is an expectation gap and why is it a controversial issue facing the auditing Function? • Definitions of the Expectations Gap: There are many definitions of the audit expectations gap. Audit expectations gap is when external auditor’s understanding and knowing everything about their role and duties is compared against the expectations of the general public and users of financial statements. The first use of the term 'expectations gap ' originated from the United States, where the term has

  • Ggb 515 Task 1

    789 Words  | 4 Pages

    citizens, helping to hold their leadership accountable. Transparency and honesty in government finance are so integral, in 1982 the U.S. Government established the Federal Managers Financial Integrity Act (FMFIA). An Act to amend the Accounting and Auditing Act of 1950 to require ongoing evaluations and reports of the adequacy of the systems of internal

  • Auditor Independence: Case Study

    843 Words  | 4 Pages

    financial interest in the company that they are auditing and fear that providing bad opinion on the statements might hinder them from attaining this interest. Among the safeguards to these threats are; professional requirements, the legislation, and regulatory bodies and other third parties (Fearnley, Beattie & Brandt,

  • Accounting And Business Ethics: Enron's Scandal

    1658 Words  | 7 Pages

    charged with securities fraud, such as fraudulent manipulation of publicly reported financial results and lying to SEC. And Enron was one of Arthur Andersen Public Accounting Firm’s clients. In this article, I would like to be more concern in the auditing and accounting

  • Sarbanes Oxley Act Pros And Cons

    578 Words  | 3 Pages

    Sarbanes Oxley Act Sarbanes Oxley Act was instituted in 2002 as result of the financial scandals at the end of 1990’s and earlier 2000’s. The act was “named after Senator Paul Sarbanes and Representative Michael Oxley” (Soxlawcom, 2015). The act contains eleven titles. Basically, the purpose of the act was to improve corporate behavior across the country and to restore investor’s confidence in the market by placing accuracy and reliability of corporate disclosure and by imposing certain restrictions

  • Enron Internal Control

    721 Words  | 3 Pages

    My Qualifications I am qualified to do this research for many reasons. First, I have taken many accounting classes and I am only a year away from my Bachelor’s. Second, I currently work with the Washington State Auditors Office. Day to day I am auditing government entities accountability, financials, and internal controls. I know and understand the importance of internal controls and the faith the public put in us to ensure their dollars are being spent properly. Lastly, I have done an extensive