The audit report must show report that management has established and maintained internal controls for financial reporting. Certification of each annual report must be verified by the executive offers of the company, the report must show that they maintained established internal controls. The offices of the company must include in their reports evaluation of the internal controls effectiveness. Included in the reports, there must be reports of fraud that may have an effect that have any effect on the internal controls. The Sarbanes-Oxley Act contains 11 titles that describing rules and requirements for financial reporting in the United States (Wang,
Understand the internal control over that cycle or account 2. Assess the planned control risk for that cycle 3. Decided the extent of testing controls that are based on the planned reliance on the internal controls over financial reporting for the client 4. Design “tests of controls and substantive tests of transactions” (Arens, Elder, & Beasley, 2012) for an account to meet transactions-related audit objectives. “The design of tests of controls and substantive tests of transactions” (Arens, Elder, & Beasley, 2012) involve determining the specific audit procedures to be performed, the sample size, items to be selected and included in the sample, and timing of the tests.
The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks,
The audit for the financial statements will include evidence supporting amounts and disclosures in statements, examining, accounting principles used assessment, estimates made by management, evaluating all of the financial statements overall. The internal control over financial reporting audit will be acquiring an understanding of internal control over financial reporting, evaluating and testing the design and operation of the effectiveness of internal control and conducting procedures as necessary. The internal control over financial reporting within a company is meant to provide a reasonable assurance as to the reliability of financial reporting and for the preparation of the financial statements for external purposes in accordance to the generally accepted accounting principles
Apollo, Inc. management of their financial records and accounting system and the auditor will accumulate evidence based on the information gather on the company’s financial records and accounting systems. Apollo Shoes, Inc.’s management is responsible for these financial records and other related information available for audit and for identifying and ensuring that the company complies with the laws and regulations that apply to its activities. Lastly, management is responsible for adjusting the financial statements to correct material misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole (North Carolina State Board of CPA Examiners, 2009). Our responsibility is to express an opinion on these financial statements and an opinion on the effectiveness of the company’s internal control
Chapter 2, pp. 41-44: Problems 2-7, 2-10, 2-16, 2-20 2-7 (Objectives 2-2, 2-4, 2-5) Who is responsible for establishing auditing standards for audits of public companies? Who is responsible for establishing auditing standards for private companies? Explain. The PCAOB which was established by the Sarbanes-Oxley Act is responsible for providing oversight for auditors of public companies, establishes auditing and quality control standards for public company audits, and performs inspections of quality controls at audit firms performing those audits.
Accountants have ethical responsibilities to many different parties, both internal and external to the company. The AICPA is used as a foundation because it covers professional conduct, integrity and general standards accounting principles. The code provides an ethical outline that all CPA members must adhere to. Accounting rules, regulations, and codes exist to ensure that the information presented is accurate and faithful to the financial circumstances. The AICPA is recognized as an authoritative source used to clarify accounting principles by offering guidance on official standards, new developments, and specific advice for accountants.
Following is an overview of the Plan with regard to compliance by each of the Facilities with regard to the universal and individual reporting obligations they face with respect to tax policies, employment laws, environmental and manufacturing regulations, international trade restrictions, tariffs, transportation, and the political stability of international governments and trade opportunities. I. Enterprise Liabilities The responsibility for the reporting requirements has been divided amongst the individual managers and directors in such a manner as to provide a system of checks and balances to minimize the opportunities for error by the Company and to limit its legal liabilities. A sample of the division of those responsibilities is as follows: 1) The Chief Financial Officer, with the assistance of the Comptrollers or Senior Financial Officers and Accounting Department Managers of each of the facilities owned or operated by the Company, shall bear responsibility for making all payments and ensuring that the Company complies with all applicable federal, state, municipal and international laws, statutes, regulations or otherrequirements in connection
Ethicality of Accounting Activities Learning Team E - Ashley Horne, Brochelle Shirley, Erika Schmidt, and Mareta Guerrero ETH/376 September 30, 2013 Tammie Holland Ethicality of Accounting Activities To evaluate the ethicality of accounting activities, Learning Team E will review the Cynthia Cooper and WorldCom case using the following criteria. This review will identify the key accounting activity involved in this case and evaluate the accounting activity in terms of the AICPA Code of Professional Conduct. Additionally, determine how the accounting activity was or was not equitable to internal and external stakeholders and which aspects were ethical or unethical. Finally, through the identification of key team members in this case, this review will explain his or her ethical or unethical actions and how those actions influenced the events that occurred. Key Accounting Activity Involved The key accounting activity involved in the case of Cynthia Cooper and WorldCom was capital expenditures, which is defined as “…the funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment” (Capital Expenditure - Capex, 2013, para.
2.2 Describe the causes of and common types of fraud and the impact of this on the organisation. 2.3 Explain the methods that can be used to detect fraud within an accounting system. 2.4 Explain the types of controls that can be put in place to ensure compliance with statutory or organisational requirements. 2.5 Explain how an internal control system can support the accounting function. 3.