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.
The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. 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).
Given PCAOB oversight of accounting firms and the AICPA Code of Conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity. The PCAOB Audit standard set the guidelines for revising audit working papers which is deemed necessary at times. However, the reason for the changes must be stated, when the change occurred and who
PCAOB, The Future of 404 Scott Carlson Mark Geiger Evallory Spratlin Kimberly Williams Liberty University Abstract Since the Sarbanes-Oxley Act of 2002 was implemented, small businesses have objected to what they describe as severe financial impacts, which are a byproduct of Rule 404 of the act. This paper will explore the allegations of small businesses, Congress’ response and what this dialogue means for the future of the Sarbanes-Oxley. The implications of this research are important because they have bearing on future regulation in the financial industry. The Sarbanes-Oxley Act of 2002 is a comprehensive bill that has proven to be a work in progress since its passage. The necessity of the bill can hardly be disputed
GASB and FASB Differences Accountants and individuals, who work in accounting fields, need to know the differences between GASB and FASB. Knowing the differences allows individuals to know what objectives apply in their organization. One difference between GASB and FASB according to Jacobsen and Wachterhauser (2011) “is the general audience
There are three specific types of audits that my firm has to offer. The first is an operational audit; an example of this would be in evaluating the payroll processing completed through computer programs. The benefit of performing this type of operational audit is to establish if it is effective and efficient in operational controls. Another audit that can be performed by the firm is an compliance audit. This determines whether requirements for specific agreements are maintained to be in compliance with specific needs.
(41) In the financial services sector, the use of the “three lines of defense” includes the business unit (BU), a risk management program, and ______________. (42) Which security policy framework focuses on concepts, practices, and processes for managing and delivering IT services? (43) ___________ refers to the degree of risk an organization is willing to accept. (44) To which sector does the Gramm-Leach-Bliley Act apply
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. According to our text, the Principles of the AICPA Code are responsibilities; the public interest; integrity; objectivity and independence;
Discussion Questions Discuss the reasons why the portfolio approach is an effective tool in managing risk. How does insurance manage risk? Explain your answer. ACC 544 Week 3 Individual Assignment Checklist for Evaluating Internal Controls Prepare a comprehensive checklist for evaluating internal controls. Apply the checklist to outline phases of the control evaluation.
c) *Communicate with the predecessor auditor after receiving permission from the client, as AU 315 requires. Topics discussed should include management integrity and any disagreements about accounting or auditing issues. d) *Determine the independence of your firm with respect to the client. e) Inquire of third parties about the client (banks, attorneys, credit agencies, etc.). f) *Take various steps to obtain an