auditors liability
Not what you're looking for?
Based on my textbook, I can not find concrete information to support questions. For me cash cycle would be most important. Auditors should not be liable, comparing the outputs against documents and inputs can identify frauds, and testing the internal controls provides opportunities to establish the validity of the processes/procedures.
What can you share? Thanks,
(1) Which cycle do you consider to be the most important to test? Why?
(2) If some frauds are deemed common, should auditors be held liable if they do not find a common fraud? Why or why not?
(3) What is the best way to identify high fraud risk areas? Why?
(4) Which are more important, tests of controls or substantive tests? Why?
Purchase this Solution
Solution Summary
Auditor's liability is discussed very comprehensively in this explanation.
Solution Preview
Your viewpoints (background info) on general questions.
Based on my textbook, I can not find concrete information to support questions. For me cash cycle would be most important. Auditors should not be liable, comparing the outputs against documents and inputs can identify frauds, and testing the internal controls provides opportunities to establish the validity of the processes/procedures.
What can you share? Thanks,
(1) Which cycle do you consider to be the most important to test? Why?
I consider the cash conversion cycle to be the most important to test. This is because most frauds take place in the cash conversion cycle. Inevitably, the cash cycle if affected if there are large unpaid expenses, also if there are any bogus revenues these will affect the cash cycle and if there are buying liabilities there will be some reflection in the cash cycle. In ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
- "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
- "Thank you kindly sir. "
- "Excellent and well explained. --Thank you kindly. "
- "Awesome notes. I appreciate you."
- "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations