Essays on Audit

Question 5 (a)

It has come to the attention of the audit firm that there are several issues surrounding the business operations of Ocean Manufacturing Inc that could deter the acceptance of the company as a client. This memo will clearly outline the reasons as to why the decision of not accepting the company as a client of the audit firm would be a viable choice. The factors identified are principal in any decision making process as they would save the reputation and time of the audit firm. Solutions to the problems observed in the company will be outlined so as to ...

- Introduction

Red Mole Construction Company, an emerging company in the heart of Boston, Massachusetts has been in operation for eight (8) years with about 500 employees consisting of both technical and administrative personnel. They have been involved in numerous constructions of school buildings and other government owned projects like cementing of roads. Aside from construction, they also offer conceptual planning, specifications, constructions estimates and the like.

Although upon incorporation, they claimed to have passed the safety management standards, they have never been formally audited by any safety auditing organization. This audit is a first for them in their ...

Introduction

Every auditor should express his opinion after auditing company financial statement. The audit opinion expressed depends on findings obtained in the audit process. There are four types of opinions which can be expressed by an auditor. They include express unqualified opinion, unqualified report with explanatory paragraph, qualified opinion, or even an adverse opinion. The opinion selected depends on how a company has: abided by GAAPS, material misstatement of value of assets and whether the scope of audit has been limited. In carrying out of audit both the auditor and the management are expected to observe some ethics to ensure ...

Events that led to the separation of consulting firms from auditing firms

The widespread concerns over the practice of providing auditing and consulting services by a firm to the same client are largely due to the need to curb conflict of interest among other reasons. Audit independence is apparently a necessity that defines the integrity of financial reporting. This and other factors have led to the split of consulting firms from auditing firms into two independent businesses operating in separate business environments. This is evidenced by the Enron case, and the general trend being experienced in the industry as ...

Answer A)

Revenue/Operating Expenses/Operating Income/Net Income Analysis: Referring to the previous five year financial statements of the company from the year 2009-2013, the revenue of the company has increased consistently over the years from $197 Millin during 2009 to $419 Million during 2013. However, as displayed in the graph below, the trend in net income has been downside-up. The Net income of the company reduced significantly during 2009 -2011 from $82 Million (2009) to $53 Million (2011). Interestingly, the reason for fall in net income during those years was significant increase in operating expenses. For Instance, during 2011, operating expenses accounted ...

Analysis

Media is a powerful and an effective tool to the society, and it`s aspects are particularly emphasized in modern days. Some of the factors explaining why media is important as shown in the media audit report include;

Media as an important element of recreation and entertainment

Through movies and music, one can experience entertainment and recreation, because the content in these forms of media is usually fascinating and exciting to watch or listen to. They are able to, relax the mind and change the mood of a person especially when exhausted due to work or other duties. Music is a frequent aspect of media that is developed ...

- Process evaluation is measured differently than the outcome evaluation. In process evaluation, changes in beliefs, attitude and knowledge are discussed and in outcome evaluation, changes in preventive behavior, death and injury related morbidity is analyzed. - Process evaluation focuses on the development and implementation of a program while outcome evaluation focuses on the positive and negative results of a program. - Process evaluation recommends the short-term changes and outcome evaluation recommends the long-term changes. - Process evaluation is less costly than the outcome evaluation, which can be really costly .

Who is responsible for safety program evaluation?

Occupational Safety and Health Administration is responsible for the ...

In today’s time, information is more important and valuable than any other precious material. The purpose of this paper is to examine and assess how much value can be added to an organization’s working with data audits. A knowledge audit is instrumental in determining the information assets of the business. It is different on various levels from an information audit which is more concerned with the process of information disbursal and communication. Information can be considered crucial for an organization primarily because they identify the capacity of the company to transform into a learning organization. An organization ...

Introduction/ Background

Internal auditing plays a crucial role in businesses and the processes of financial reporting of public sectors. The internal auditors serve a vital role in monitoring the risk profile of the company and identifying the areas on which to improve the risk management. The objective of internal auditing is essentially to improve the organizational effectiveness and efficiency through constructive criticism. Of late, internal auditing has turned into an essential control mechanism in both private and public sectors. However, there have been few academic studies that have been conducted on the internal auditing effectiveness in the governance of the public ...

Auditor has much to learn from the article "What the Dog Saw". It gives inspiration and advice that is essential of practiced while auditing. It has provided with clues on how to undertake the task in an appropriate and efficient considering the situation and the environment. Malcolm Gladwell pointed some of the activities of which related much to the situations concerning to the business field. The cultural trends of the Americans during 1950s it was a taboo of a woman applying dye on their hair. This is connected with how companies have tied back their original message of which ...

Introduction

The financial statements of organization are the measure of its performance. The financial health of an organization can be judged from its financial statements. That is the reason why the statements should represent a true and fair view of its position. Often people at key positions are encouraged to falsify accounts to meet short term needs such higher earnings per share or profit after tax. Sometimes people engage in such activities to conceal the actual position of the organization and make it look profitable in the eyes of investors. It is not just big organizations but the small ones ...

Accounting control system ensures accuracy and reliability of information required by management for decision making. Accuracy and reliability of information is a prerequisite for management especially when an organization start becoming complex. Reliability and accuracy of information depends on how well the information reflects the economic events which t is based on (ACC, 2014). The financial statements should reflect the fair view of the status of the organization. This means that they have to be accurate. This accuracy can be verified through audit function, accounting information system and the internal controls. A Board of Education is part the management ...

Sarbanes-Oxley Act is an act by the United States congress in 2002 aim at protecting investors through corporate disclosures accuracy and reliability. It mandated strict reforms aimed at improving financial disclosures and possibly prevent accounting fraud. The scandals of early 2000s such as Tycoon, WorldCom and Enron predicated the enacted of SOX. These scandals shook investor confidence, and an overhaul of regulatory standards was required. The SOX Act outlined rules as well as enforcement policies, which amended or supplemented existing legislation. There are two key provisions of the 2002 Sarbanes-Oxley Act which are section 302 and section 404. Section ...

Business Plan - Construction Plan

Business Plan - Construction Plan

Introduction

This report presents a business plan for a construction company. The report includes a description of the business type, products and services involved and the chart of accounts, which will be used while keeping in view the nature and requirements of business activities. In addition to this, a discussion pertaining to the applicable financial reporting framework and the pro forma financial statements have also been presented, which include the balance sheet and income statement of the proposed business. Apart from this, the report also takes into account the internal control procedures, which will be ...

Introduction

The present day corporate world is well aware of the increasing cases of accounting fraud. Governments and regulatory bodies are finding themselves in embarrassing situations after corporation’s collapse, even after receiving a clean bill of financial health from their auditors, a landmark case being that of Enron. These incidences have led to the accounting regulatory bodies, securities regulatory bodies and other government institutions mandated with the regulation of the accounting profession to demand that auditors are accountable for their actions or omissions in the performance of their duties. In the case study below however, there is a conflict ...

There are four American Institute of Certified Public Accountants Standards of reporting. First is that the auditor should say whether the financial statements are submitted in a manner conforming to accounting principles which are generally accepted. Second, the auditor of show in the auditor’s report circumstances which the principles have not been observed consistently currently in relation to the prior period. Third, the auditor should also state in the auditor’s report if they find out that informative disclosures are not very adequate (Tracy, 2009). Lastly, the auditor is expected to state an opinion in relation to financial ...

Introduction

Accounting and Finance are two different fields, but most of the people associated both of them are identical. However, the concepts of both of these provisions are totally different from each other. Accounting is the name of recording the day to day transaction, while finance is the name of utilizing the funds of the company at a place from where the likelihood of earning would be on a higher node. Both of the concepts of Accounting and finance are two important things from the standpoint of an organization and no organization could be in the line of economically based ...

In any business, the major battleground is financial accounting, and there is no government or industry regulation that can prevent unethical ways that people use in dishonestly reporting given financial information (Duska, 2007). For example, there are certain accounting practices that are illegal like misinterpretation of figures and expenses on a company’s financial statement. However, some legal accounting practices are unethical (for example, influencing financial results by shifting expenses unjustifiably). Arthur Andersen LLP is a good example of a company that violated accounting ethics. This accounting firm would have become one of the largest firms in the USA ...

Introduction

Diabetes mellitus is a serious metabolic disorder, with a complex of symptoms, such as hyperglycemia, as a result of dysfunction in producing of the insulin, its synthesis or secretion. (Stöppler, 2014). This disease may lead to serious complications. The major risk factors that raise the prevalence of diabetes are hypertension, obesity, pressed immune resistance to the infectious illnesses and even cancer. (Bilous, 2002.) Patients with diabetes are more probable to develop neuropathic vascular diseases (National Diabetes Education Program NDEP 2000). Self-management and educational programs for this group of people can greatly increase their level of life. (Department of ...

Introduction

Retinopathy is a frequent complication of diabetes mellitus especially when blood sugar is poorly controlled. The retina is the part of the eye that transforms light into signals transmitted to the brain through the optic nerve (NHS UK 2013). The brain interprets the electrical signals into images corresponding to what was seen. While sufficient blood supply is needed for the retina to function optimally, chronic hyperglycaemia causes ischemia and bleeding in the retinal microvasculature leading to the formation of new capillaries meant to sustain blood circulation in the retina (Vithian & Hurel 2010). However, the new capillaries are fragile and ...

- Methods used by Enron to manipulate accounting figures The fall of Enron was one of the highly publicised corporate failures. The directors of the company manipulated the financial statements of the company to mislead users of accounting information. The methods used by the firm included mark-to-market and off-balance sheet financing as well as interference with auditor independence.

Mark-to-market accounting

Enron changed its revenue recognition policy from the traditional revenue recognition principle to mark-to-market accounting. As an energy company, Enron’s incomes were derived from mainly the sale of natural gas. As a practice, Enron entered into several long-term contracts with ...

Disclosure related to accounting policies

The company under Note 2 of the financial statement has disclosed extensive information about the accounting policies being followed by it. Following the IFRS standards for the purpose of financial reporting, each accounting policy followed and implemented in the financial reporting process has been discussed, thus providing evidence for sufficiency of the disclosure of the accounting policies.

Relevance of Segmental Information

With companies going multinational there are different segments operating under the organizational framework. Hence, in order to ensure transparency related to the financial disclosures and to adhere to the regulations of the accounting standards, the companies do report segmental information so as ...

Where Auditors Fear to Tread Article Review

In the article Where Auditors Fear to Tread, Paul M. Clikeman brings to light the issue of earnings management. Clikeman argues that earnings management should be classified in the same category as fraud because both earnings management and fraud have one thing in common: misrepresenting the organization’s financial performance. Clikeman goes further to allege that the flexibility within GAAP (General Accepted Accounting Principles) allows this subtle form of fraud to take place. He further asserts that this unethical practice is either ignored or even encouraged. The article also gives some of the reasons as to why managers may ...

Introduction

Corporate governance has sprung out as a concept in response to the increasingly critical corporate scandals that were taking position in the late 1900s. The concept has remained strongly concerned with the areas of corporate risk. Nonetheless, the notion surrounding Corporate Governance is becoming more widely applicable and useful, for both the small and big organizations. The concept is also an increasingly substantial facet of a job and organizational management that transcends to global government and trade laws; as easily as to the international corporations, organizations and markets. The term corporate governance is a conglomeration of two words; corporate ...

Professional Skepticism means an approach towards accounting which includes a questioning mind and being in a position which questions a possibility of fraud, errors or misstatement and is a critical evaluation of audit evidence. It is essential for a quality audit. Professional skepticism is a skill which is very similar to professional judgment and helps in providing an opinion for an audit engagement. Professional skepticism helps in asking questions which make sure that any information provided is true. It is an approach which is similar to a judgment and auditors with professional skepticism tend to make good decisions as ...

Audit is an independent inspection of the accounts of an organization. Accounts include all the financial statements maintained by the organization. An audit will give an independent and professional view if the accounts are maintained properly or not. The people qualified to conduct an audit are known as auditors who are generally chartered accountants qualified to review the financial statements. Auditors are required to follow the standards and regulations set by the Board. They prepare an audit report which includes all the necessary details about the organization and presents it to the manager of the company. An auditor who ...

In the contemporary business environment, the management of information and data forms a critical component of the business entity. One major role played by the management systems is the ability to provide information that can be used to develop trends. Upon these trends lie the capability of the business entity to come up or predict the market abilities and the opportunities. At a time when competition is at peak high in the market and the market share is under threat of diminishing every day, there is a need for the business entity to have a clue as to what ...

Business

External companies conducting sustainability audits for corporations Kothari Auditors based in Dubai, UAE. External companies that are conducting sustainability audits for corporations offer accounting and audit services including audits required by corporations for taxation purposes (Porter, et.al., 2014). In case of Kothari Auditors, a well known external audit firm in Dubai, UAE, work for individuals as well as corporate firms. The audit methodology is extremely useful for the purpose of ensuring that the elements of a larger industrial organization can be used to conduct an audit and understand the operations of the organization completely. The audit firm helps firms ...

- The auditors have limited scope on this section of the audit and therefore would give a qualified opinion on this section of the audit. Since it says that this matter does not over shadow the fairness of the financial statement, the audit opinion could be written as shown below. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as evidence regarding the foreign affiliate investments and earnings, the balance sheet together with the notes thereon properly drawn up so as ...

Recommendations

Actively engaging in and even being an accessory of an auditing process that involves falsification or voluntary omission of required elements to be audited is not only unethical but also illegal. Most companies falsify their auditing reports so that they can pay smaller amounts in taxes and other expenses. In Sue’s case, she is well aware that what her company is doing with its auditing reports is illegal because it is practically waiving the employee taxes that it should pay to the government by means of voluntary non-declaration or misclassification of assets and resources. Both the senior auditor ( ...

- The accounting policies of a reporting entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles and that, accordingly, have been adopted for preparing the financial statements (FASB, 1972). International Accounting Standards (IAS) 8 governs the disclosure of accounting policies. The standard provide guidance for IFRS compliance applying to any event , transaction or conditions on developing accounting policies for other ...

Bradley County- Comprehensive Annual Financial Report

Answer 1) Answer 2) The financial statements of the company are audited by Mr. Justin Wilson, Comptroller of Treasury, Department of Audit, Tennessee. The auditor in their report have provided an unqualified opinion to financial statements of the county stating that the financial statements of the company provide fair opinion relating to financial position of the Government activities of Bradley County.

Answer 3)

The transmittal letter by the mayor of the county briefly discusses the financial performance of the county and various other financial aspects. The authority begins his letter addressing that the financial statements of the county have been prepared ...

Introduction

Every Professional accountant has the responsibility of taking into account the interests of the public while also maintaining the reputation of the accounting profession. It is important that self-interest does not prevail over one’s duties as a professional accountant. Acting in the public encompasses having regard to the genuine interests of the clients, government, financial intermediaries, staffs, investors, as well as the business and financial community and all others who rely highly on the impartiality, fairness and truthfulness of the accounting profession for supporting their propriety and methodical functioning of commerce. The purpose of this essay is to ...

Careers in Accounting

The common career path for accountants is in the field of financial reporting/management or auditing. As financial managers, their roles are considered crucial in any type or size of company. They are responsible for maintaining financial records and preparing reports for internal and external use, in accordance to accepted Accounting standards. They ensure that these reports are delivered accurately, in a timely manner and suited for the use of various stakeholders, such as management /owners, regulators and investors. These records serve as basis for gauging and recommending measures for operational efficiency, adherence to conditions by creditors or for determining ...

Members of the government have an advantage because of the lot of money they receive as payment and allowances. While members of congress get the extra ordinary amount of money to plan on the budget of the citizens and enable them to rule the government without any impediments. The politicians usually host fundraiser and invite lobbyists to contribute to their campaigns .It is clear that the politicians depends on those special fundraisers to raise the money to win reelection. Therefore, it is clear that the government applies forces for the Politian to create laws that are favorable to those ...

Regi’s Stock Sale Dilemma

Regi Philman is in a dilemma whether he should use the specific identification method or the FIFO method (first in first out) to calculate his tax returns. On the audit of Regi’s 2010 return, the IRS has taken the conclusion under Reg. Section 1.1012-1(c) (3) that he should report the sale using FIFO method of his stake in Rippa shares, resulting in a gain of $140,000. Research Section 1.1012-1(c)(3)(II)(b) of the IRS regulations states: “ Where part of the stock represented by a one certificate is sold directly by the taxpayer to the ...

Fraud is an intentional action to do something that is illegal or unethical. It is done to cause damage to the receiving party. Many a times fraud is also done to gain something which could be money or inside information or knowledge. Fraud is a criminal offence. It cannot be justified. Many companies have gone through the fraud and there have been cases where the fraudster has been punished. Revenue fraud is a type of fraud which affects the revenues of a company. It is done to manipulate the accounts and earn profits. Simply overstating or manipulating the revenues ...

Integrity & ethical values- Strong

The integrity and ethical values of the firm are really strong. The owners are willing to expand and are not willing to do any wrong, that is one reason they want an audit conducted so that the financial statements provide accurate information. The owners have good ethics and integrity. The way the business has been going on in the past shows that there is integrity and ethics in the firm as a whole.

Commitment to competence- Moderate

The commitment to competence is moderate because it is seen that the firm has no well defined long term plans and nor does it take into ...

Introduction

Manipulation of financial data has become one of the biggest problems, and that require measures in the world of corporate finance. Companies have been known to mislead or deceive users of published financial data especially investors as they prepare and disseminate materially misstated financial statements. This action involves intent and deception by a team of clever and knowledgeable perpetrators such as top executives and auditors through the use of well-planned schemes. This manipulation involves schemes such as misrepresentation of events, intentional omissions, wrongly execution of accounting standards and policies, and alteration of supporting documents. (Rezaee, 2003). Manipulation of financial ...

Introduction

Auditing is an independent and systematic examination of statements, records, data,performances and financial state of a business for a spsecific purpose. In all types of auditing, auditors recognizes and perceives all the proposals forwarded to them for review,collecting evidence and evaluation and while using this basis they formulates the final judgment that is disseminated through the audit report. Audits offers third person assurance to many stakeholders directing on wether the subject under discussion was from misstatement or not. All categories of subjects may be audited including internal controls, project regulation,water management,quality regulation, and power conservation.

The main audit risks and the associated responses

...

Introduction

An audit plan is a crucial element of the auditing process as it establishes the suitable procedures for specific items. (Mills, 2008) In that respect, it is a key risk management tool and its application in this case is crucial in managing the risks involved in auditing for the three items of work in progress, trade receivables and payables. (AICPA, 2002) In that view, the following is an explanation of why the three items are crucial for evaluation owing to the control and audit issues facing Falmer metals.

Justification for the items identification as areas key to audit risk

The business situation provides environment for audit risk. First, the lack ...

Desperate Air

Unequivocally, the case ‘Desperate Air Corporation’ (DAC) is a typical case of ethical lapse and flawed ethical judgment because Mr. Nash overlooked any health risks to be faced by future users of underdeveloped ocean property. The first core issue is about the reliability of full environment audit of ocean front property conducted by DAC. The second major concern is about the validation of presence of hazardous waste material as claimed by the female employee of DAC. Taking into consideration the aforementioned issues from an ethical and legal perspective, Mr. Nash should have initiated a comprehensive re-audit of ocean property ...

What is the definition of hybrid system? Could you give an example of one?

Hybrid systems - Mathematical models of control systems in which the continuous dynamics generated at each time one of the a priori given set of continuous systems, punctuated with discrete operations, the serving team or a momentary switch from one system to another, or on the instant to set the current restructuring coordinates on the different coordinates, or on both simultaneously. Hybrid system dynamics is an alternating combination of continuous dynamics with discrete. Continuous and discrete components of the system may include some parameters influencing the behavior of the system. This systems are used to keep track of logic-dynamic ...

You Are an Entrepreneur

You Are an Entrepreneur The formation of a new business is the easiest task in any business. However, to expand that business and making it profitable is the main concern for the business owners with limited resources. In the current financial circumstances all over the world, it is becoming difficult for the small or medium size business to raise finance via share issue or debt. The main reason behind this difficulty is that the investors are losing the faith in the sustainability and the going concern issues of smaller and new businesses. Therefore, in these circumstances, it is very ...

Accounting

Accounting Description: There are risks of unauthorized access to either physical inventory sites or the online inventory system. Specifically, for on-site inventory access, only authorized employees can enter the warehouse with their access cards. For online inventory access, only and employees can login and special passwords should be required. The level of confirmation required should vary according to the importance of the inventory data. This will help different people access different inventory data instead of giving everybody access to data inventory. Test Procedures: First, the auditors can ask for a list of the employees who has the access right ...

Independence is the cornerstone of the accounting profession. Without it, any opinion rendered cannot be relied upon by outside parties. An auditor must not only be independent in fact but also in appearance. According to Hill and Booker (2007), both are studied to understand what independence is required in the profession but research evidence related to independence in fact requires far more effort as it involves information that is not always publicly available (as cited in Daniels and Booker, 2011, pp. 79). In previous years, it has been a common practice that auditing firms also provide tax and consulting ...

Introduction

With the emergence of a global competition, every business faces a challenge to capture more market share by improving the bottom line of its financial statements and reinvesting much of the earnings to expand operations. For this organizations implement tight internal controls so that none of the business transaction goes unchecked. In this regard, an auditor’s role is critical to track any possibility of fraudulent activity within the business finance. With such a concept in mind, this paper has been written to identify the roles and responsibilities which an internal auditor assumes within an organization. The major focus ...

Critically assess the current legal position of auditors in the UK and Ireland. Analyse the impact the current situation has on the competitiveness of the audit market and discuss some of the methods available to auditors to reduce their exposure to expensive litigation.

Introduction

Auditors are liable for both criminal and civil offenses. Criminal offenses arise when the auditors violate a government-imposed law. It will be a dispute between the State and the auditor. On the other hand, civil offences dispute are always between the individuals and /or organizations. The last two decades have seen the large 4 auditing companies ...

The article says that in the earlier decades, companies used to have corporate ethics programs to convince that they were socially responsible and it also helped guide human behavior. But in 2014, the companies are willing to do the right thing and follow legal requirements. The study was carried out to determine the findings and observations regarding compliance of ethics and auditing requirements. Ethics training is available in 98% of organizations in the US, there is also seen an increase in hotlines to complain about ethical questions. There have been additions in the ethics program. One is the ethics ...

Audit means the checking of accounting. It refers to analyzing of the financial statement of count that reveals the net income to the shareholders. The financial statements show the respective revenues and the current operations to the shareholders. Audit is actually the watch dog concerned with the checking of accounts and the presentation of business divisions to verify that the aunt are prepared as according to international accounting standards. As well, the information given in the financial statements is as per the operations of the organization. The purpose of audit is to check the accounts and the records that ...

Global Crossing Limited is an example to all regarding the failure of a proper audit of financial statements. It was a telecommunication company which had gone through the scandal in 2001. The scandal was caused due to reporting of the financial statements against the audit purpose. The management is highly responsible for the preparation and presentation of the financial statement, the auditors and the management did not exercise professional care and did not investigate about many issues which were wrongly reported in the financial statements. This led to the downfall of a highly ambitious company. The company went through ...

1 Introduction This research paper discusses the history of financial auditing. Studies indicate that financial auditing has been evolving through many stages. In the 18th century, the practice of financial auditing was a traditional conformance to the role of auditing. It is clear that the auditing paradigm has been changing and will continue shifting into the future. Financial auditing originated from checking procedures in ancient civilizations such as Greece, Egypt and China. The industrial revolution period established the role of financial auditing. The Institute of Certified Public Accountants in America and The SEC (Securities Exchange Commission) play a critical ...

- I disagree with the conclusion. If the lawyer is silent on certain matters of audit conclusion, the auditor should not assume the matter as complete. Instead the auditor should conduct an inquiry and get more details regarding the matter. Maintaining silence on an issue does not mean that the response is complete. - In the given case, the conclusion is correct. If the lawyer does not provide the probable outcome of the given case, the auditor can specify it in the notes to financial statements and assume that the scope is restricted. Even after the request of the auditor, ...

INTERNATIONAL STANDARDS OF AUDITING

Introduction An Audit report is a formal disclaimer or opinion given by either an internal auditor or an outside auditor (Collings, 2011). The audit report, after completion, is handed over to the consumer, the company or organization in which the evaluation was done, so as to show assurance of service. The report can then be applied in decision making by the user or can be put to other uses. The audit report is a very paramount instrument when it comes to reporting financial information to businesses or organizations. The International Standards of Auditing (ISA) are the professional standards and ...

International Auditing Standards

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In the United States, the International Auditing and Assurance Standards Board (IAASB) works as an independent body, setting standards for auditing under the International Federation of Accountants (IFAC). The IAASB establishes the best quality auditing, quality control, assurance, and related services in order to ensure uniformity of practice by professionals all across the world. Until 2002, the IAASB was formerly known as the International Auditing Practices Committee or IAPC. With such high standards in place for auditing and assurance, public confidence is therefore improved. ...

executive Summary The following report is about sustainability issues related to Smithfield/Wetherill Business Park and provides recommendations about fixing these issues for our client, Fairfield City Council (FCC). The Smithfield-Wetherill business park has a manufacturing and wholesale/retail unit and accounts to be the largest industrial estate in the southern hemisphere. The report defines what sustainability is in terms of economic, political, environmental and social goals and what impact do they have on each other. This report does not instruct the client what to do, but rather makes suggestions based on observations and discussions with the managers and business owners. ...

Arguments for expanding the information that is included in the auditor’s report.

The current auditor’s report model provides information as to when audits on financial statements were conducted, the audit’s nature, and auditor’s opinions regarding the financial leverage of a business. This is in conformity with the existing financial reporting standards of accounting. However, the framework has been criticized on laxity or insufficient financial information that business stakeholders may require in making informed investment decisions. Under this framework investors lack details and access to the sources of such information as auditors provide details of what they deem useful to them in disseminating financial information. The implication is that ...

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Enron was believed to be one of the leading, innovative corporations of the world. The company that received the “America’s Most Innovative Company” award for six years in a row by Fortune magazine saw a sudden fall in 2001 and shocked the entire industry. The fall of the giant corporation did not only affect the industry but also shattered the dreams of the employees and stockholders of the company who had been bedazzled by the great profits. The factors behind the fall of this huge corporations were never identified before ...

The article talks about the use of computers in auditing and fraud detection. It introduces a new term “Inductive Logic Programming” that is under development these days in order to detect fraud even before they occur. It relies on mathematics algorithms and programming to detect suspicious patterns and report the fraudulent activity before it occurs. For example, during bad weather, very few people leave their homes, and if during such time a card from that area is used, it will report it as a suspicious transaction. This is not new, currently many banks throughout the world use “Neutral Networks” ...

Accounting Standard followed by the company

i) General Mills Inc:

Referring to Note 1 of the financial statement, we notice that General Mills Inc follows Generally Accepted Accounting Principle(GAAP).

ii) Meiji Holdings: Referring to the Note 1 of the consolidated financial statements, we find that Meiji Holdings are following Generally Accepted Accounting Principle(GAAP) in Japan. In addition, the company specifically declares that the consolidated financial statements of the company are not prepared in accordance with GAAP standards prevalent in countries or jurisdictions other than Japan.

Accounting Standard followed by the auditors

i)General Mills Inc: Referring to the report of external auditors, we find that the consolidated financial statements of the company have been audited by KPMG LLP using standards of Public Company Accounting Oversight Board(United States). The ...