The Auditor Jack Butler, a major character in the book “The Auditor” explains about his successful story as an auditor who had a strong determination to become a huge gulf player in his early age. However, he was injured in an automobile accident early in his senior years of high school and had surgery on his left leg. Jack’s father, Art Butler wanted his son to follow his path and wanted him to become a successful lawyer like himself. However, Jack decided to change in career to Accounting.
Responsibility for Errors, Fraud, and Illegal Acts The financial statements are the responsibility of management, while the auditor’s responsibility is to express an opinion on the financial state- ments. Many readers of financial statements believe that auditors have a responsibility to detect all errors, fraud, and illegal acts. Section 5135 of the CICA Handbook, “Auditor’s responsibility to detect and communicate misstatements” and section 5136, “Misstatements–Illegal acts,” discuss the auditor’s
Where Were The Auditors? Barry Minkow was a true “whiz kid.” He started ZZZZ Best Company, a highflying carpet cleaning company specializing in insurance restoration contracts, at the age of 16. In 1982, when Minkow started the business, it was run out of his garage, but a mere 5 years later he had taken the company public and it had sales of $50 million and earnings of more than $5 million. The market value of Minkow’s stock in ZZZZ Best exceeded $100 million. As it turned out, Minkow’s genius
http://www.gowerpublishing.com/isbn/9781409434702 Auditor Independence Auditing, Corporate Governance and Market Confidence IsMAIl Adelopo © Copyrighted Material The logical point from which to start the discussion on Corporate Governance is to present an understanding of the antecedents of the corporation. This can be traced as far back as the Middle Ages (between the fifth and fifteenth centuries), the period of the Renaissance (between the late fifteenth century and early eighteenth
The Auditor Writing Assignment 5-5: The keys to conducting an effective interview is getting your interviewee to warm up to you. As Loebbecke mentioned on page 33 of the text, people were more willing to answer his questions more honestly and completely when he was pleasant, unassuming, and unintimidating. Also, showing a genuine interest in what the people are doing can also help in getting useful responses. 6-5: Time budgets have both positive and negative aspects. They are very helpful
Exams are not useful Students take many oral and written exams since their first day to school. Most of people trust that it is a necessary way to have a good fundamental education. However, in my opinion, exams are unnecessary for three reasons: in specific situation and attitude of teacher. In specific situation means students have got sick, run into an accident or they have not enough tuition on the day he takes exams; as a results they can not attend exams. Despite
TYPES OF AUDITORS There are three types of auditors: internal, governmental, and external (i.e., independent auditors or certified public accountants). Internal auditors are employees of the organization whose activities are being examined and evaluated during an independent audit. The primary purposes of internal auditing are to review and assess a company's policies, procedures, and records and to review and assess a company's performance given its plans, policies, and procedures. Therefore,
of what auditors are really looking for and if an employee wanted to commit fraud they could gain insight and learn how to hide their activities better. (b). The hiring of former external auditors could cause there current independent auditors judgment to be impaired especially if they knew the former external auditor. If the external auditors had worked with the new internal auditors before it could cause them to question the books less because they personally know the internal auditor. (c).
Contents 1.0 Introduction 2.0 Types of Audit 2.1 Financial Statement Audit 2.2 Internal Audit 3.0 Types of Auditor 3.1 Independent Auditor 3.2 Internal Auditor 3.3 Government Auditor 4.0 Legal Requirements of an Audit 5.0 Benefits of an Audit 5.1 Conflict of interest 5.2 Consequence 5.3 Complexity 5.4 Remoteness 5.5 Lower Cost of Capital 5.6 Deterrent to Inefficiency and Fraud 5.7 Control, Risk Assessment and Operational Improvements 6.0 Responsibility for Detecting
Ethics and the Auditor Ethics may be defined as “that branch of philosophy which is the systematic study of reflective choice, of the standards of right and wrong by which it is to be guided, and of the goods toward which it may ultimately be directed” (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2013, p. 589). From this definition we can take away three key elements involving ethics which include questions requiring reflective choice (decision problems), ethics involves guides of right and