Auditing

Importance of Auditing For Preventing Fraudulent Activities By: Accounting 302 Dr. Ohene Spring 2015 Introduction In the accounting profession, whether its managerial or financial accounting, the systematic examination of the accounting records (books, documents, vouchers, etc) is defined as auditing. The Federal Securities and Exchange Commission, or the SEC, requires companies that are publicly held to have their financial statements examined by an auditor(s). In auditing, the primary

Auditing Research Paper January 9, 2012 Auditing in general is an organized process of accurately finding and assessing statements regarding financial records to determine the degree of accuracy between those statements and established criteria and communicate the results to interested users and or the public. Even though auditing and accounting have similarities, they can be distinguished. An accountant handles the daily financial operations for a business, while an auditor reviews the information

statements. Although internal and external auditors play different roles with an organization, they must follow auditing standards and procedures to detect fraud. In 1941, The Institute of Internal Auditors (IIA) was founded to provide guidance to internal auditors (Whittington & Pany, 2014). “With over 170,000” international members, “the IIA has paralleled the recognition of internal auditing as an essential control function in all types of” businesses (Whittington & Pany, 2014, p. 778). In the United

First of all, having a clear communicate with the predecessor auditor to discuss the details. Since this will involve the client confidential matter, obtaining a permission should take place first. By doing this, auditor can able to identify the auditing issues to have a better picture of the company working system. Secondly, acquire and review all client financial information is a next step auditor should take. Auditor should know where the company is standing in order to analyze any potential risk

This paper examines one of the rule of Generally Accepted Auditing Standards (GAAS), independence and discuss the shortcomings in the GAAS. Independence can be effect by many different reasons. Auditors might face challenges in applying concepts and interpretations under circumstances where in conflict with the auditor’s relationship with the audit client. To improve audit quality and protect investors’ interest, PCAOB reviews the work of public accounting firms that do audits of more than 100 public

the world through his reputation for honesty and integrity. “Think straight, talk straight” was his motto and he insisted that his clients adopt that same attitude when preparing and issuing their periodic financial statements. Arthur Andersen’s auditing philosophy was not rule-based, that is, he did not stress the importance of clients complying with specific accounting rules because in the early days of the U.S. accounting profession there were few formal

Over the years the accounting profession has been subject to various forms of oversight with varying degrees of success. Nevertheless, it used to be self-regulating. But a series of financial scandals involving once prominent companies such as Enron, WorldCom and Parmalat lead the authorities to consider whether the accounting profession's self-regulatory oversight system was appropriate to meet the necessary objectives. These corporate failures had shown that the self-regulatory system did not produce

The Auditing Process When auditing an internal information system, an auditing team should traverse four phases of activity in a non-bias manner to ensure a complete and concise analysis of all associated soft assets to ascertain if a move to a Cloud service would be a benefit to the organization. In phase one, audit planning, the audit team obtains a charter. The charter is a formal document, which will lay the foundations of the audit team’s business requirements, while defining their scope of

Chapter 7 Case – 7-54 "Going Concern" Please respond to the following: From the e-Activity, analyze the auditor’s responsibility to determine if a company can continue as a going concern. From your analysis, propose at least two (2) key factors that the auditor should consider when determining an entity’s ability to continue as a going concern. Provide a rationale to support your proposal. SAS 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (AICPA, Professional

ESSENTIALS OF INTERNAL AUDITING: - There are some essentials for an effective internal auditing: 1- Independence: - The internal auditor should have the independence in terms of organizational status and personal objectivity which permits the proper performance of his duties. 2- Staffing and Training:-The internal audit team should be appropriately managed in terms