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The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board. Identify the duties of that board.
Do you believe that outside auditors (CPAs) who examine the financial statements of a company, while being paid by that company, can be truly independent?
Although the case involved fraud, the type of accounting used was also questioned because it allowed the company to recognize profit before the actual sale.
As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store.
Should the internal auditor be assigned to audit the same office in which he recently worked? What problems could arise in this situation?
What factors should Pierson consider, and what inquiries should Pierson make in deciding whether to rely on Goff's work?
He believes that external auditors are independent and can make sure that financial statements are correct.
What is the purpose of external auditors providing an opinion on a company's financial statements?
It was learned at the trial that the company overstated its inventory by moving inventory from store to store and counting the same inventory several times.
Jones told the students not to spend time reviewing the internal controls, but instead to concentrate on proving the mathematical accuracy of the ledgers.
What journal entries would the fraud perpetrators have entered into the financial records to overstate revenues?
A friend argues, however, that anyone presented with the right pressures can commit fraud and that opportunities must be eliminated through an effective .
Should external auditors do all audit procedures themselves, or should the relationship between the auditor and the client be more friendly?
How do you think the news of the bankruptcy was reflected in the auditor's report accompanying the financial statements dated April 30, 1990?
She thinks that increased government audit fees will attract more qualified auditors and will result in a dramatic rise in the reliability of the financial.
Some people think that auditors are responsible for ensuring the accuracy of financial statements. Are they correct?
Examine at least two (2) performance ratios that you would use in order to determine which analytical tests to perform.
Is the treasurer solely responsible for carrying out the investment committee's directives?
Prepare the audit program of substantive procedures to verify Sevcik's bank balances. Ignore any other cash accounts.
Describe three additional substantive auditing procedures Phung should consider in auditing Vernon's investments.
Create a summary audit plan, by account, for how Spencer can obtain assurance regarding the fair value of each of the inputs.
What information do you need to consider in order to determine how successful your business is or will be?
In addition to verifying the cash amount, how else could the information on the cash register tape be used to evaluate the store's operation?
How does the purchasing process affect prepaid insurance and property, plant, and equipment transactions?
Confirmation is a useful audit procedure for verifying information related to prepaid insurance.