The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles. In essence, materiality should function as a cut-off threshold to determine the nature of the audit testing. Auditors should not reveal its materiality level to clients because clients might take advantage of it to deceive the auditors and make its financial statement better. When the Deloitte auditors are suspicious of certain accounts, they not only can’t reveal it but also make more substantive investigation into these accounts. Question 4: Existence: the
In addition, much of the new assignments are given to untrained professionals with strict completion deadlines. Because of such dilemmas the auditing firm has been faced with the ethical dilemma of whether to assist with the accounting issues at MHA and NYH. As a professional in accounting I have agreed to terms of independence. By confirming to such terms, I must not issue any non-audit services. As the auditor of both MHA and NYH, according to Sarbanes-Oxley Section 201, I am prohibited most non-audit services to public audit clients.
Audit Report and Program Design ACC/546 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Apollo Shoes, Inc. We have audited the accompanying balance sheets of Apollo Shoes, INC. as of December 31, 2014 and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the two years in the period ended December 31, 2014. We have also audited management’s assessment, included in the accompanying Management’s Report on Internal Control over Financial Reporting, that Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued
1 requires that "in all matters relating to the assignment, independence in mental attitude is to be maintained by the auditor...he must be without bias with respect to the client. "26 Because a principal purpose of auditor independence is to provide assurance to investors, the accounting profession has long required independence not only in fact but also in appearance. SAS No. 1 states, "Public confidence would be impaired by evidence that independence was actually lacking, and it might also be impaired by the existence of circumstances which reasonable people might believe likely to influence independence. "27 Accordingly, "Independent auditors should not only be independent in fact; they should avoid situations that may lead outsiders to doubt their independence.
Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm. The authors of the report must certify that the report does not contain any false information, misleading statements or significant omissions, and that the financial statements and information included in the report accurately represent the financial condition of the company. Under Section 401 of the act, this representation must account for both balance and off-balance sheet debts, obligations and transactions in order to facilitate maximum transparency for shareholders (Nikolas, Daniel. Nd Effects of the Sarbanes-Oxley Act). The act serves as a guideline and governs what an accountant should and should not do when reporting financial flows.
Octopus bank seems to have acted in good faith using “reasonable” procedure in not noticing the alteration. Yet under the “Properly Payable Rule. The bank must pay out the customer's money only if it exactly follows the customer's orders. §4-401(a). A customer is not liable for the amount of the overdraft if the customer did not sign or benefitted from the proceeds of the action.
If this is the case, then it is to be disclosed on the financials as required by FASB ASC 850 -10-50; Related party Disclosures – Overall - Disclosure, Statement of Financial Accounting Standards No. 57, 1982. If this is not a related-party transaction, it is not necessary to
The code contains sections addressing professionalism, personal integrity, privacy, laws and policy, communication, system integrity, education, responsibility to computing community, social responsibility, and ethical responsibility. In exploring this ethics code I will attempt to give “real-world” examples of how these codes can be used where appropriate. Professionalism, as the code spells out, is best described as treating everyone fairly and not allowing ones personal beliefs to intrude on business decisions. This means that, as a system administrator, one should not treat people unfairly because of their personal beliefs. An extreme example of unprofessional behavior would be a system administrator refusing to give increased network storage space because the user is a new young employee, and the administrator does not believe that the new employee is entitled to more space for no reason other than their age.
- Compliance Department (1,2) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The Third Line of Defense helps the Bank to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. How & Who: Develop policies for periodic internal audits (5) covering: Adequacy of bank’s policies, procedures and controls identifying key risks, addressing the identified risks and complying with laws, regulations and
I don’t think this was ethical. I don’t think information discussed in a board should be discussed or brought to the media unless they are doing something illegal. Without honesty and trust these board members will also have these issues. I think policies and consequences should handle situations like this. Someone should not be able to show dishonesty, lack of respect or unethical decisions and still be a part of that