This website uses cookies to ensure you have the best experience. Learn more

Audit Report And Control Evaluation

404 words - 2 pages

The Audit Report and Internal Control Evaluation
University of Phoenix
Michelle Melville
Auditing/ACC 546
April 21, 2014
Professor Hillary Edmondson

Auditor’s Responsibility for Detecting and Reporting Fraud
It is the responsibility of the audit engaged in the audit process to detect material misstatement in management’s assertions. These material misstatements must also be properly reported. Arens et. al (2012) defined fraud as “…any intentional deceit meant to deprive another person or party of their property or rights” p 433. Fraud as it relates to financial reporting is the intentional misstatements of the company’s financial statements and the misappropriations ...view middle of the document...

In using professional skepticism the auditor must never assume the honesty or dishonesty with management reporting. The conditions for rationalization may cause even the most honest person to make allowances for committing fraud (Arens et. al, 2012). Once the auditor discovers fraud has occurred, it is their responsibility to critically evaluate the evidence to determine whether the fraud really exists. As such, the auditor will further probe the specific issue, gather any additional evidence, and finally consult with the other members of the audit team.
Auditing standards requires the auditor to document all aspects of the fraud assessment. The includes the discussion with other members on the audit team, the procedures the auditor carried out to gather information, the possible risks the auditor identified, the results of the procedures the auditor performed, and any other conditions relative to the risks identified during the evidence gathering. All communication between the auditor and any other party must also be documented in the report (Arens et. al, 2012). The auditor then evaluates the factors that can reduce this fraud risks and presents everything in the report to management.
References:

Arens, A.A., Beasley, M.S., Elder, R.J., (2012), Auditing and Assurance Services, Fourteenth

Edition

Apollo Shoes, Inc - McGraw-Hill/Irwin, 2007, The McGraw-Hill Companies, Inc., Retrieved

from University of Phoenix Website

Other assignments on Audit Report And Control Evaluation

Should Audit Firms Be Required To Rotate On Public Companies

1560 words - 7 pages division of accounting most affected by this scandal was the role and function of the external auditors. Auditors by trade serve in the public and stockholders interest. Furthermore, the independence of auditors is essential in performing their duties properly. As a result, which practices are needed to achieve total independence? Moreover, how do we weigh the cost of financial misstatements with the cost of redundancy due to rotation of audit firms

Audit Essay

2737 words - 11 pages agents, and internal auditors. Answer: The roles of all four types of auditors are similar in that they involve the accumulation and evaluation of evidence about information to ascertain and report on the degree of correspondence between the information and established criteria. The differences in their roles center around the information audited and the criteria used to evaluate that information. Independent auditors primarily audit companies

Assurance Service

2680 words - 11 pages engagement activities * Plan the audit * Consider and audit internal control * Audit business processes and related accounts * Complete the audit * Evaluate results and issue audit report 1-10 The auditor’s understanding of the entity and its environment includes knowledge about: (1) the client’s industry, regulatory, and other external factors, (2) the

Comprehensive Strategic Management Overview

373 words - 2 pages Overview of Strategic Management A Comprehensive Strategic-Management Model Strategy Evaluation Strategy Evaluation Strategy Implementation Strategy Implementation Strategy Formulation Strategy Formulation Measure and Evaluate Performance Measure and Evaluate Performance Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Generate

Auditing

494 words - 2 pages , systems and processes within companies used to guide and control them c. An intentional act through the use of deception to obtain an unjust or illegal advantage d. The processes used by a client when finalising the accounts for an accounting period 6. Which of the following statements is correct about audit risk? a. It is impossible to completely eliminate audit risk. b. Audit risk is the risk that an auditor

Case Study For Dell Inc In Appendix A

266 words - 2 pages significant accounting policies used to prepare financial statements. c. What type of audit opinion is reported in its annual report and whose opinion is it? An integrated audit as been completed, of Dell Inc.’s January 28, 2005 consolidated financial statements and of its internal control over financial reporting as of January 28, 2005 and audits of its January 30, 2004 and January 31, 2003 consolidated financial statements in accordance with

Using The Work Of Others

6572 words - 27 pages may eliminate or reduce such threats, and may be created by external structures (for example, the auditor’s expert’s profession, legislation or regulation), or by the auditor’s expert’s work environment (for example, quality control policies and procedures). There may also be safeguards specific to the audit engagement. A19. The evaluation of the significance of threats to objectivity and of whether there is a need for safeguards may depend upon

Auditors And Regulatory Oversight----- Diamond Foods, Inc. Accounting Scandal

912 words - 4 pages statements. “In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Diamond Foods, Inc. and subsidiaries as of July 31, 2012 and 2011 …” However, due to the discovery of the accounting scandal, the firm subsequently restated its opinion in its 2013 audit report: “Also in our opinion, the Company did not maintain, in all material respects, effective internal control over

Nabh Cqi

3295 words - 14 pages assessment will include: • Physical assessment • Psychosocial assessment • Spiritual assessment • Emotional assessment.  The nurse will assess: • Allergic reactions • Patient safety • Skin assessment. NEW Mechanism for Evaluation -What to monitor? Nursing assessment. -Where to monitor? Patient admission form and nursing notes. -How to monitor? Personal observation, Discussion with staff. Flowchart Audit

Auditing

2531 words - 11 pages management, control and governance process. In today’s world auditors are practicing fraudulent activities such as auditors are compromising important information for their personal and self interest to receive incentives from the directors to provide false report. They are not providing true and fair reports of their audit firms for whom they are employed in. For example in the Enron case, the company collapsed due to alignment of the directors

Acc 555 Week 2 Hw

1887 words - 8 pages in his new role and because the audit firm modified audit procedures to reduce the risk that Joe has knowledge of the audit plan, independence would not be impaired. e. Violation of Rule 101 – Interpretations and rulings under Rule 101 note that independence is impaired if billed or unbilled fees remain unpaid for professional services provided more than one year before the date of the auditor’s report. Because the report date for the

Similar Documents

Bkaa 3023 Essay

1222 words - 5 pages OBJECTIVES This course intends the student: 1. To comprehend applicable regulations, legal responsibilities and ethical standards and current issues facing the audit profession. 2. To appreciate the concepts of internal control system and the use of computer assisted audit techniques in auditing a computerised environment. 3. To understand and apply audit risk, materiality, and statistical and non statistical audit sampling

Audit Essay

768 words - 4 pages audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.[1] Internal auditing is a catalyst for improving an organization's effectiveness and efficiency by

Acc 545 Essay

1408 words - 6 pages WEEK 4 –INDIVIDUAL ASSIGNMENT 5.3 What are the primary and secondary reasons for conducting an evaluation of an audit client’s internal control? A. The auditor has two primary reasons for conducting an evaluation of a company’s internal control. 1) First, Sarbanes-Oxley (SOX) requires an audit of management’s assessment of internal controls for publicly traded companies. This type of audit is an integrated part of the financial

Format For Internal/External Audit Report

278 words - 2 pages FORMAT FOR INTERNAL/EXTERNAL AUDIT REPORT I. Title Page An Internal and External Audit Report Of Selected Companies for Business Research Submitted by: (List names in alphabetical order) II. Internal and External Audit Report of Company 1 1. Brief description of the Company - History - Ownership/Key resource person - Products/Services 2. Presentation of Internal Audit Report in