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External Auditing

Avis Love, Staff Accountant Case

It should be a essay containing these questions about Avis Love, Staff Accountant . Please include work-cited. 1. Would it have been appropriate for Avis to substitute another store for Store 51 after she discovered the cutoff errors in that stores accounting records? Defend your answer. 2. Identify the parties potentially

precision interval, conclusion

Fishkin, CPA, is attempting to determine whether the average height of a player on a basketball team is greater than 80 inches. Based on his sample of basketball players, he determined an estimate of 76 inches with an associated precision of 10 inches. The confidence in this estimate is 90% A. What on the precision interval a

Green Corporation; Sue Ewe personal injury lawsuit

You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. The lawsuit was initiated by Sue Ewe in September, 2010. Management and the company's outside legal counsel estimated

Pontificate and Associates (PA) Auditing: Cite Problems

Pontificate and Associates (PA) are a regional audit firm operating in South East Ontario. Their chief partner, Louis Pontificate, received his CA in the early 1960's. Since starting his own audit firm in 1965, he has seen it grow to a firm with 25 associate partners. At the age of 71, he still works hard although he is well eno

Case 3.5 (Knapp) Goodner Brothers - Internal controls case

Goodner Brothers 1. List what you believe should have been the three to five key internal controls objectives of Goodner's Huntington sales office. 2. List the key control weaknesses that were evident in the Huntington unit's operation. 3. Develop one or more control policies or procedures to alleviate the control weakn

Darby Department Store - Auditing Report

At the completion of the Darby Department Store audit the president asks about the meaning of the phrase "in conformity with generally accepted accounting principles," which appears in your audit report on the management's financial statements. He observes that the meaning of the phrase must include more than what he thinks as "

Auditing

25) Information risk refers to the risk that A. the client may not be able to remain in business. B. errors and frauds are not detected by the auditor's procedures. C. the client's financial statements may be materially false and misleading. D. the auditor may express an unqualified opinion on financial sta

Auditing Principles Questions

22) Which control question relates to the existence and occurrence objective in purchasing and accounts payable? A. Does the chart of accounts and accounting manual provide instructions for classifying debit entries? B. Are the purchase order forms prenumbered and is the numerical sequence checked for missing documents

Auditing

1) Rule 102, Integrity and Objectivity, applies to A. all professional services. B. all accounting and audit services. C. all attestation services. D. only audit services. 2) The fundamental issues in independence require that the auditor avoid A. financial connections with the firm and acting a

Describe 2-3 areas of auditing risk in a retail business one might feel do not have sufficient controls. Explain what risks the organization faces by allowing these items to continue in their current form. 2. Using the 2-3 risk areas identified in question #1, explain the control procedures you would recommend establishing to mitigate the risk. Go on to explain the audit process you would use to audit each of your proposed solutions.

1. Describe 2-3 areas of auditing risk in a retail business one might feel do not have sufficient controls. Explain what risks the organization faces by allowing these items to continue in their current form. 2. Using the 2-3 risk areas identified in question #1, explain the control procedures you would recommend establishin

1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why 2. Define inherent risk and explain how this applies to transaction cycles. Give an example of how flowcharting or control matrices could help identify and mitigate inherent risks

1. Explain why sampling is important in the auditing process. Give an example of an instance where sampling would be appropriate and an example of where it would not, explain why 2. Define inherent risk and explain how this applies to transaction cycles. Give an example of how flowcharting or control matrices could help ident

Procedures, tools, and techniques

What sampling tools and techniques will be used for the examination? What analytical and inferential tools will be used to evaluate accounting evidence?

There have been a lot of talk in these posts about internal

There have been a lot of talk in these posts about internal and external users, but what about the auditors? Can anyone tell us which one of these types of analysis would be beneficial to them? Could they use both? What about when auditing for materiality and fluctuations over time?

Core Concepts of Information Technology Auditing

Of the 10 steps to using CAATs outlined in Ch. 8 of Core Concepts of Information Technology Auditing, which is the most important and why? If you had to add an additional step what would it be and why?

Auditing: PCAOB Audit Trail, Software & General Controls for IT

Is it probable that the use of information technology (IT) will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total in the financial statements? Explain. How do the American Institute of Certified Public Accountants (AICPA) and the Public Company Acco

Auditor Judgment or Instinct

I would say the use of auditor judgment or instinct is not only acceptable, but also required. The text explains this best: "GAAS and the SASs should be looked on by practitioners as minimum standards of performance rather than as maximum standards or ideals. Any professional auditor who seeks means of reducing the scope of the

Effectiveness of Internal Controls on Reliability

"The reperformance technique should be used in order to ensure the audit evidence supports the conclusions as reperformance is independent execution of procedures or controls that the auditor can verify the evidence originally generated by the client's system." Our text tells us that "both physical examination and reperformance

Timing of collecting evidence would be important

"four decisions" that auditor's must make in determining the amount and type of evidence to collect. In my opinion, the first three are probably the ones auditors focus on the most. However, I think the fourth point regarding the timing is just as critical (if not more important) in most circumstances. Timing can be influence

Auditing: Defining the Population when Sampling

What is the importance of defining the population when performing audit procedures? How would defining the population affect the sample size? How would incorrectly defining the population affect the sampling unit? Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these r

Auditing software generalization

What is generalized audit software? What are the tasks for which auditors would use it? What are the advantages and disadvantages of using generalized audit software?

Auditing- SEC, risk, fraud, sampling, SOX

16. Differences exist between the Securities Act of 1933 and 1934. More cases have been brought against auditors under the 1934 Act because it applies to annual filings and: 17. The type of risk that is independent of the audit of the financial statements and therefore cannot be changed is: 18. Occasionally, employees

Auditing Responsibility for Illegal Act

Describe the auditor's responsibility for discovering illegal acts. What barriers do you see in terms of your ability to accurately uncover fraud? What are the sources of the barriers? If possible, would you eliminate the barriers? If so, why?