MindTap Accounting, 1 term (6 months) Printed Access Card for Johnstone/Gramling/Rittenberg's Auditing: A Risk Based-Approach, 11th
11th Edition
ISBN: 9781337619509
Author: JOHNSTONE, Karla M; Gramling, Audrey A.; Rittenberg, Larry E.
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 39RQSC
a.
To determine
Concept Introduction: The framework for ethical decision making has been developed by using the utilitarian theory and rights theory. It helps an auditor to overcome the ethical dilemma in an effective manner.
The ethical decision using the framework for ethical decision making.
b.
To determine
Concept Introduction: The framework for ethical decision making has been developed by using the utilitarian theory and rights theory. It helps an auditor to overcome the ethical dilemma in an effective manner.
The right course of action to be taken.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A staff auditor had just begun work and was assigned to a client that her supervisor, a senior auditor, had worked for many years. Her supervisor assigned her to this client and sent an email welcoming her to the client and providing details and files regarding the client. Among the information included in the email was the client's general ledger, her expected work hours during the busy season, and her assigned audit sections. The supervisors of the new staff auditor requested a meeting to get her acquainted with the position and answer any questions she may have.
What questions should the staff auditor ask her supervisor, a senior auditor who has worked for her assigned client for many years?
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 20X7. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations.
(i)Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company he has realized a small profit for the company through foreign-exchange transactions in yen.
(ii)Sampson has planned to close an inefficient factory in country New South Wales before the end of 20X7. It is expected that the redeployment and disposal of the factory’s assets will not be completed until the end of the following year. However, the financial controller is confident that he will be able to determine reasonably accurate closure provisions.
(iii)To help achieve the budgeted sales for the…
You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high.The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full.Required: (a)Explain the reasons why internal auditors should or should not report their findings on internal control to the…
Chapter 1 Solutions
MindTap Accounting, 1 term (6 months) Printed Access Card for Johnstone/Gramling/Rittenberg's Auditing: A Risk Based-Approach, 11th
Ch. 1 - Prob. 1CYBKCh. 1 - Prob. 2CYBKCh. 1 - Prob. 3CYBKCh. 1 - Prob. 4CYBKCh. 1 - Prob. 5CYBKCh. 1 - Prob. 6CYBKCh. 1 - Prob. 7CYBKCh. 1 - Prob. 8CYBKCh. 1 - Prob. 9CYBKCh. 1 - Prob. 10CYBK
Ch. 1 - Prob. 11CYBKCh. 1 - Prob. 12CYBKCh. 1 - Utilitarian theory holds that what is ethical is...Ch. 1 - Prob. 14CYBKCh. 1 - Which of the following statements related to...Ch. 1 - Utilitarianism does not require which of the...Ch. 1 - Prob. 17CYBKCh. 1 - Prob. 18CYBKCh. 1 - Prob. 19CYBKCh. 1 - Which of the following factors is not an example...Ch. 1 - Prob. 1RQSCCh. 1 - Prob. 2RQSCCh. 1 - Prob. 3RQSCCh. 1 - Prob. 4RQSCCh. 1 - Prob. 5RQSCCh. 1 - Prob. 6RQSCCh. 1 - Prob. 7RQSCCh. 1 - Prob. 8RQSCCh. 1 - Prob. 9RQSCCh. 1 - Prob. 10RQSCCh. 1 - Prob. 11RQSCCh. 1 - Prob. 12RQSCCh. 1 - Prob. 13RQSCCh. 1 - Prob. 14RQSCCh. 1 - Prob. 15RQSCCh. 1 - Prob. 16RQSCCh. 1 - Prob. 17RQSCCh. 1 - Prob. 18RQSCCh. 1 - Prob. 19RQSCCh. 1 - Prob. 20RQSCCh. 1 - Prob. 21RQSCCh. 1 - Prob. 22RQSCCh. 1 - Prob. 23RQSCCh. 1 - Prob. 24RQSCCh. 1 - Prob. 25RQSCCh. 1 - Prob. 26RQSCCh. 1 - Prob. 27RQSCCh. 1 - Prob. 28RQSCCh. 1 - Prob. 29RQSCCh. 1 - Prob. 30RQSCCh. 1 - Prob. 31RQSCCh. 1 - Refer to the Why It Matters feature “What Is...Ch. 1 - Prob. 33RQSCCh. 1 - Prob. 34RQSCCh. 1 - Prob. 35RQSCCh. 1 - Prob. 36RQSCCh. 1 - Prob. 37RQSCCh. 1 - As the auditor for XYZ Company, you discover that...Ch. 1 - Prob. 39RQSCCh. 1 - Prob. 40RQSCCh. 1 - Prob. 41RQSCCh. 1 - Prob. 42RQSCCh. 1 - Prob. 43FFCh. 1 - Prob. 44FFCh. 1 - Prob. 45FFCh. 1 - Prob. 46FF
Knowledge Booster
Similar questions
- You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 20X7. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company he has realised a small profit for the company through foreign-exchange transactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the end of 20X7. It is expected that the redeployment and disposal of the factory’s assets will not be completed until the end of the following year. However, the financial controller is confident that he will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the…arrow_forwardYou are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full.Required:(a) Explain the reasons why internal auditors should or should not report their findings on internal control to…arrow_forwardYou are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full. Required: Discuss the merits and shortcomings of Crofty forming an audit committeearrow_forward
- You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director. The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full. Required: (a) Explain the reasons why internal auditors should or should not report their findings on internal control to…arrow_forwardYou have been employed Arens & Elder CPA for many years. As a training officer for the firm, part of your responsibility include training new staff before they are sent out on an initial audit job. Three new members of staff are expected to work on the audit of Flemings Limited. Your training of these new staff members will focus on management assertions and audit procedures. The following are various management assertions (1 through 10), made by Flemings, that are related to their sales and accounts receivable. i. All sales transactions have been recorded. ii. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described. iii. Accounts receivable are recorded at the correct amounts. iv. Sales transactions have been recorded in the proper period. v. Sales transactions have been recorded in the appropriate accounts. vi. All required disclosures about sales and receivables have been made. vii. All…arrow_forwardYou are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 2019. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company, he has realized a small profit for the company through foreign-exchange transactions in dollars. explain how the components of audit risk (inherent, control or detection risk) are affected.arrow_forward
- Phillip Dale is a recent employee of RMGT Audit Firm. A new client Juicy Juice Limited has approached RMGT for the audit of its annual reports and Phillip was asked to start the preparation of the audit plan. Phillip knows only too well the importance of audit planning. It involves many considerations that help to develop more efficient engagements and provides auditors with important risk management techniques. Juicy Juice Limited operates in many overseas countries. The company employs over 2000 employees and is known for providing many great benefits for its employees. One of Juicy Juice’s biggest assets is its inventory as the company offers a large variety of products throughout the many overseas countries in which it operates. The company also regularly purchase shareholdings in other companies. The previous auditors of Juicy Juice have stated that the previous year’s audit had revealed extensive material misstatements. Questions A. Discuss FOUR (4) of the…arrow_forwardNancy Watkins has been working for five (5) months as a staff member for Acme, CPAs. She iscurrently working on the audit of Tampa Manufacturing Company. She is on a four-person auditteam that is supervised by senior auditor James King.At the end of the first day of audit work, James tells the audit team that they will all have to workextra hours each day. These extra hours are to be on the audit team members’ own time to makesure that the audit comes in on budget. The team was asked to come in early, take short lunchesand stay late each day.Nancy remembered reviewing the company’s policies during her orientation. There is a policyagainst working hours and not charging them on the time report. It is considered a violation ofAcme’s employment policy. In addition, she knows that seniors are paid bonuses instead ofovertime.When discussing this issue with the other auditors on the team, Nancy finds out that James doesthis all the time. (Apparently, several other audit seniors follow the…arrow_forwardStar audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. Identify which of the following is related to their audit process. Identifying the risk Conduct interviews Create audit procedure and plan Discussing corrective action planarrow_forward
- You are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confident thathe will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…arrow_forwardYou are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confident thathe will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…arrow_forwardYou are the audit senior responsible for the audit of Sampson Limited. You are currently planning theaudit for the year ended 31 December 20X7. During your initial planning meeting held with thefinancial controller, he told you of the following changes in the company’s operations.(i) Due to the financial controller’s workload, the company has employed a treasurer. The financialcontroller is excited about the appointment because in the two months that the treasurer hasbeen with the company he has realised a small profit for the company through foreign-exchangetransactions in yen.(ii) Sampson has planned to close an inefficient factory in country New South Wales before the endof 20X7. It is expected that the redeployment and disposal of the factory’s assets will not becompleted until the end of the following year. However, the financial controller is confidentthat he will be able to determine reasonably accurate closure provisions.(iii) To help achieve the budgeted sales for the year,…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub