Audit Essays

Audit Proposal

There are many different types of audits including internal, external, and information technology. Companies should be familiar with the types of audits that may possibly be used on an Accounting Information System (AIS). Knowing the different types of audits and where they are used will help a company be ready for an audit and make the process much smoother. There are some circumstances where auditing through a computer is not always beneficial. Auditors want to make sure they are completing…

Read >>

Internship Report

I am Nigel Ng Ding Xun from Business Information Technology. During the ending of my second year in Ngee Ann Polytechnic, I had to go through what may be the toughest thing I faced during my time studying in Ngee Ann. Internship. I was placed in the company Lau Chin Huat & Co. Lau Chin Huat & Co. is a firm of certified public accountants. In the company, there are a total of three different departments. The IT department, the…

Read >>

Human Resource Control

I want to first start off by saying thank you for the opportunity to handle such an important and sensitive matter such as the internal control for the LJB Company. First and foremost I want you to be aware of the requirements of your company if you do decide to go public. The Sarbanes-Oxley Act of 2002 (SOX) which was passed by congress requires all publicly traded U.S corporations to maintain an adequate system of internal control. Corporate executives and…

Read >>

Koss Management Case

1. Why might Koss management have placed so much trust in Sachdeva, along with minimal supervision and monitoring? Koss management might have placed so much trust in Sachdeva because she was is such a high position. She worked in the company as Vice President, when you are that high on the totem pole, you are given trust that you know what you are doing and that you want what is best for the company. Companies don’t hand out positions to…

Read >>

Lakeside

Discussion Questions 1. The owners of Lakeside as well as the company’s bank may require that an independent CPA firm perform an annual audit because the CPA firm could have an independence issue. The CPA firm in that Lakeside wants to hire is also the auditors for Lakesides main financial bank. The bank is a “main” user of the report put out by Lakesides auditor and in this case would be that banks auditor too. The connection is too close…

Read >>

An Assesment of the Role of the Auditor in Fighting Corruption in an Organization

CHAPTER TWO LITERATURE REVIEW 2.1 Introduction Reliable accounting and financial reporting issued by auditors help organisations in allocating resources from the society in an efficient manner. Although the primary goal of an organisation is profit making and to allocate limited capital resources to the production of goods and services for which society’s demand is great, a highly complex phenomenon which is corruption poses a threat to those goals and services. However, most organisations spend huge sums of money adopting strategies…

Read >>

Payroll Accounting

I visited Cabela’s on friends and family night, so I observed their internal controls. I also asked my inside source of their internal controls that are not seen on the sales floor. My source provided me with Cabela’s Business Code and Ethics which clearly states: “All Outfitters are required to; appropriately manage and safeguard Cabela’s assets, ensure their efficient use, and ensure they are used for legitimate business purposes; maintain complete, accurate, and timely financial records related to their area…

Read >>

Auditing

Justin Kealey, CPA, is auditing Tustin Companies, Inc. Kealey has accumulated known and likely misstatements for the current year to evaluate whether there is a sufficiently low risk of material misstatement of the financial statements to issue an opinion. However, Kealey notes that there are several misstatements that have been carried over from prior years. A .Distinguish between the iron curtain and the rollover approaches to considering the misstatements from prior years. In consideration of an auditor’s approach for considering…

Read >>

If you Need Love, Get a Puppy

1. PCAOB describes professional skepticism as a general duty of care that needs to be applied by the auditor throughout the duration of the audit engagement. Professional skepticism involves the auditor having a clear and questioning mind regarding the assertions that are presented by management or other client personnel. The auditor is instructed to not take the words or data presented by management as sufficient and appropriate audit evidence but rather the auditor needs to thoroughly audit the evidence with…

Read >>

Enron Scandal

A brief on Enron’s history  Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth.  In the early 1990s, he helped to initiate the selling of electricity at market prices, The resulting markets made it possible for traders such as Enron to sell energy at higher prices, thereby significantly increasing its revenue.  As Enron became the largest seller of natural gas in North America by 1992, Enron pursued a diversification strategy owning…

Read >>

Recommendation Brief for an Internal Accountant

Currently, a client with an out-of-control system is grasping for a change in order to regain their internal controls. For any company, internal controls are highly important for success. Internal controls assist with minimizing mistakes and dishonesty; however will not completely eliminate them. The client has an out-of-control system in operation and will definitely benefit from having an internal accountant. Therefore, it is extremely recommended that a well-qualified internal accountant be hired by the company. An internal accountant will provide…

Read >>

Auditing and Assurance Notes

Week 1 Purpose of audit – enhance the degree of confidence of intended users in the financial report. Expression of an opinion by the auditor on whether – the FR is prepared, in all material respects, in accordance with applicable financial reporting framework. Opinion – whether the FR is presented fairly, in all material aspects, give a true and fair view in accordance with the framework. ASA require auditor to exercise professional judgment and maintain professional skepticism throughout the planning…

Read >>

Issues in Fit Food Inc

Significant part of the behavioural displacement can be related to results control system that is in place. FFI is evaluating the divisional personals’ performance based on their achievement of Annual Operating plans; some of those are like •Achieving 7% divisional growth rates •Bonuses based on achievement (upto 150%)of annual operating plans and no bonuses on failure •Stock options offered to corporate managers and divisional presidents •Sean’s (founder & chairperson) call for better financial performance during those peak recessionary period(2008-2009) These…

Read >>

Happiness Express, Inc

1. Identify the primary audit objectives that auditors hope to accomplish by (a) confirming a client’s year-end accounts receivable (b) performing year-end sales cut-off tests. The primary audit objectives that the auditors hope to accomplish by confirming a client’s year-end accounts receivable are existence, completeness, and valuation. By using confirmations, the auditors are hoping that the third party would confirm or deny the stated amount, or add additional comments with the confirmation. By examining the exceptions (which includes the non-repliers),…

Read >>

Hambalang Case

1. Create a short summary of the case and explain (a) who the suspects / Convicts are and (b) what criminal charges are brought against them Hambalang is the case regarding the construction of Centre for Education, Training and the National Sport School (P3SON: Pusat Pendidikan, Pelatihan dan Sekolah Olahraga Nasional) which is a multi-year project the Ministry of Youth and Sports. P3SON planned to be built on a land area of ​​312 thousand hectares in the village of Hambalang,…

Read >>