Companies and their independent accountants or auditors should report the effectiveness of the companies internal controls based on these six principles. Publicly traded companies or those planning to go public are required to maintain internal controls and ensure compliance of government regulations. Company Evaluation As it relates to internal controls, the LJB Company is meeting and or adhering to some of the regulation requirements of the Sarbanes-Oxley Act within the daily operations of the business. I have provided a list below of the current processes being used within LJB Company that are being done exceptionally well. Establishing Responsibility: It is important to designate only one individual to handle specific tasks.
Audit work paper manipulation by Deloitte Touche Ross in the North Face Inc.case. Course Title: Advanced Auditing Date: November 15th 2012 Author Note Abstract This paper explores the instance of audit work paper manipulation by Richard Fiedelman of Deloitte Touche Ross (DTR), a leading Public Accounting firm who failed to exercise due professional care in the carrying out of his duties in the course of the audit of their client North Face Inc. It evaluates the severity of the Securities and Exchange (SEC’s) sanctions imposed on Richard Fiedelman for the violation of Generally Accepted Accounting Practices (GAAP) and Generally Accepted Auditing Standards (GAAS). It also covers the practice of ‘materiality’ used by public accounting firms and how this should be addressed with audit clients. The paper discusses the options of responses to being asked to modify client work papers by the engagement partner.
" Contents page • 1. Introduction P.6 Analysis ofthe Accounting System & Recommendations P.9 Cost Benefit Analysis P.12 7. ... P.5 6. .. Executive Summary 5. Name: West Thames College (AH 0279) AAT Word count: PA 4. , Methodology 3.
Hammersmith Tools Limited The underlying accounting policies have been applied in the preparation of the financial statements of Hammersmith Tools Ltd. Statement of Accounting Policies For the Year ending 31 December 2011 1. Purpose The purpose of the following statement of Accounting policies is to act as a guide to non-accounting employees on basic accounting procedures that are employed in the company while determining the overall profits of the company. 2. Basis of Preparation The financial statements are prepared in accordance with the applicable law and under the convention of Historical cost.
Accounting Principles Board (APB) Opinions 5. Accounting Research Bulletins (ARB) 6. Accounting Interpretations (AIN) 7. American Institute of Certified Public Accountants (AICPA) a. Statements of Position (SOP) b.
Members of the Committee are directors who meet eligibility rules of the “Company’s Corporate Governance Guidelines, rules of the Securities and Exchange Commission (SEC), and the standards of the New York Stock Exchange” (Charter of the audit committee of the board of directors, 2011). Members must also meet the financial knowledge requirements and are not compensated other than Directors’ fees and benefits (Charter of the audit committee of the board of directors, 2011). The Committee reviews the Company’s financial reporting including quarterly and annual statements, the compliance of Generally Accepted Accounting Principles (GAAP), and reviewing transactions performed outside of normal procedures. Additionally the committee is responsible for meeting with the Company’s internal auditors, independent auditors, and management to ensure financial compliance and ethical behavior. The Committee must examine the internal controls to ensure controls are in place to limit risk and has the authority to dismiss or appoint the Vice President of Management Audit in the event the Committee deems necessary (Charter of the audit committee of the board of
FASB Codification System The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) recognizes the Financial Accounting Standards Board (FASB) as an authoritative organization since 1973 (Facts about FASB, n.d.). The FASB is an organization designed to establish standards for financial accounting that oversee the preparation of all financial reports by any nongovernmental entity. The FASB has designed the Accounting Standards Codification to assist with the assembling a localized location to search authoritative resources regarding accounting standards. FASB Codification System and Its Purpose The FASB Codification system is defined by the FASB as, “a database and research system developed by the Financial Accounting Standards Board (FASB) that pulls together many of the authoritative resources about accounting standards into a single, searchable system” (Financial Accounting Standards Board, n.d.). The purpose of the FASB Codification is to allow accounting and reporting professionals access to an online database that makes finding and navigating through authoritative accounting standards simpler and easier.
Field work phase We used following techniques in our field work: -Interview with Bert Roberts who was the chairman of the board and John Sidgmore, vice chairman of the board (see exhibit A) -Interview with Max Bobbit, the chairman of the Audit Committee -Review of minutes of Board meetings -Evaluation of the functions of the Board based on the review of the organizational chart -Review of company’s procedures manual on compliance -Accounting department organization structure and related functional job descriptions including responsibility and authority relationships Review Work Steps | Budgeted Hours | Personnel Assigned | 1. Goals and Objectives a. Review plans and goals for the year b. Review internal materials related to employee growth | 6 | Shernelle | 2. Organization Chart and Procedures Manual c. Obtain a copy of organization chart and analyze
AICPA Code of Professional Conduct Roberta Barker ETH/376 May 5, 2014 Samuel Hinton AICPA Code of Professional Conduct In this paper I will discuss the purpose of the AICPA Code of Professional Conduct and why it is considered the foundation of ethical reasoning in accounting. In addition I will indicate which three purposes/principles of the AICPA code I consider to be the most important and why I consider them as such. Their purpose The AICPA is a voluntary association made up of CPAs and its membership totals over 350,000 members worldwide. Its purpose is to promote in its members and the accounting profession in general a code of professional conduct to follow through principles pertaining to their ethical obligations of their profession (Mintz & Morris 2011). Foundation of ethical reasoning in accounting The AICPA is considered the foundation of ethical reasoning in accounting because its principles are a guide to members for how they are expected to perform their professional responsibilities.
AICPA Code of Conduct ETH/376 October 29, 2012 AICPA Code of Conduct In 1887, creation of AICPA Code of Professional Conduct was to represent accountants around the world. “The purpose of the AICPA code of Professional Conduct is for the accounting profession to uphold values and standards of behavior in the community; its membership totals more than 350,000 professionals around the world” (Mintz& Morris, 2011.). AICPA is the foundation of ethical reasoning in accounting because it acts as guidelines for CPAs to follow that covers anything from independence to diligence. There are six principles that the AICPA must hold up to, but cannot legally be bound to; “(1) Responsibilities, (2) The Public Interest, (3) Integrity, (4) Objectivity and Independence, (5) Due Care, and (6) Scope and Nature of Services” (Mintz & Morris, 2011.). These principles are strictly set in place to “represent the expectations for CPAs on the part of the public in performance of professional services” (Mintz & Morris, 2011.).