Nobody downloaded yet

Auditing - Essay Example

Comments (0) Cite this document
Summary
Going concern is a concept “where the entity is assumed to continue in existence for the foreseeable future, the extent of which varies from entity to entity…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Auditing
Read TextPreview

Extract of sample
"Auditing"

Download file to see previous pages In fact seasonal interruption are routine and regular and even after such interruptions business continue in normal course and thus entities pursuing seasonal business may be called going concern despite periodic seasonal interruption
In this write up the issues relating auditors’ responsibility to assess the substantial doubt arising out of normal auditing procedures is considered in order to produce independent and effective reporting to the stakeholders.
The assumption under the concept of going concern is continuity in normal course and such “continuity of entity operations is usually assumed in financial accounting in the absence to contrary” (Michael J Ramos, page 285)ii Auditors assess the going concern concept whenever substantial doubt is created while following regular and normal audit procedures.”If there are no doubt neither directors nor auditor need refer specifically to going concern in the financial statements or audit report. However, the Combines Code states that directors should report that the business is a going concern with supporting assumptions and qualifications as necessary. “(Lain Gray and Stuart Manson, page 674)iii
Going concern concept assumes an atmosphere of normalcy. Under the going concern concept “the enterprise will continue in operational existence for a foreseeable future.” (Nexia International, page 137)ivWhenever auditors have substantial doubts about the going concern concept it underlies that financial statements have not been prepared under normal circumstances. This is because “the going concern concept is unlikely to be compatible with the intention or necessity to enter into a scheme of rearrangement with the company’s creditors, or make an application for an administrative order, or place the company in administrative receivership or liquidation.”(Saleem Sheikh and William Rees, page 349)v In other words results or status shown by ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Auditing Essay Example | Topics and Well Written Essays - 1500 words - 1”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1562862-auditing
(Auditing Essay Example | Topics and Well Written Essays - 1500 Words - 1)
https://studentshare.org/miscellaneous/1562862-auditing.
“Auditing Essay Example | Topics and Well Written Essays - 1500 Words - 1”, n.d. https://studentshare.org/miscellaneous/1562862-auditing.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Auditing
...?AUDITING Table of Contents Introduction 3 Globalisation 3 Effects of Globalisation on Accounting and Auditing 4 Auditors and Auditees 5 Driving Factors 6 Changes in Audit Process 7 Conclusion 8 References 9 Bibliography 12 Introduction The term “globalisation” has become the most discussed buzzword among the academicians, politicians and economists in recent times. Various driving factors and inherent benefits for different companies are proving to be incentives for the organisations towards enhanced financial globalisation. The growing interdependence of developed economies on developing and emerging economies is contributing towards increased globalisation (Hamilton & Quinlan, 2008,...
7 Pages(1750 words)Essay
Auditing
...?Auditing 300 i. Confidentiality, professional competency, due care, professional behaviour and integrity are some of the fundamental audit principles (Wild, Shaw and Chiappetta 2011, 811). These are standards that an audit member must adhere to in order to uphold integrity in the profession. In the above problem, Bob has breached the confidentiality principle; this is an ethical principle and legal obligation of discretion which require non disclosure of information except to the client and audit committee about the findings or any material uncovered during the course of audit. This is unless permission is granted by the client for such discloser (Boritz 2004, 29). However, the above principle can be violated in the following... ...
3 Pages(750 words)Essay
Auditing
...Management Letter When an auditor addresses a letter to a client, it is called a management letter. The content of this letter is the conclusions drawn by the certified public accountant concerning the accounting procedures and policies of a company, its internal policies, as well as the internal controls. The current system is evaluated, and its flaws are identified. Suggestions for improvements are then outlined. Issues identified by the management letter do not need disclosure in the Financial Annual Report. Nevertheless, the letter reflects the recommendations and concerns of the auditor that he might have come across during the audit process. A report by an auditor is a complete review by a third party of the...
3 Pages(750 words)Essay
Auditing
...Auditing Stagecoach Company is among the leading transport companies in the United Kingdom. The company is a quoted company and that means that it has to publish its financial reports on an annual basis. The reports are usually published so that the stakeholders of the company can use them. The stakeholders include the shareholders, government, and the employees of the company. In the preparation of the audited report, the auditor has to be aware of the risk areas that can be changed to make the financial statements of the company look more appealing to the stakeholders of the company (Emerson, 212).The risk areas include the following, 1. Overstating of revenues and the understating of expenses Revenues...
7 Pages(1750 words)Case Study
Auditing
...Auditing Answer i) Confidentiality is one of the professional standards which should be maintained by the professional accountant or audit assistant of a firm. An audit assistant should respect the confidentiality of information acquire as a result of business and professional relationships and should not disclose information to parties other than those involved in the contract unless there is a professional or legal duty or right to disclose. However, acquiring of confidential information as a result of the business and professional relationship should not be put to use for third parties advantage or that of auditors. The alternative adopted by the audit assistant is...
4 Pages(1000 words)Essay
Auditing
...Table of Contents Audit Risks 2 Group Accounts 2 Foreign Currency 3 Intangible Assets 3 Provisions 4 Taxation 4 Intangible Assets: Increased Risks and Audit Procedures 5 Valuation 5 Impairment 6 References 8 Audit Risks The audit of the company Mobile Streams Plc. is followed by risks as the nature of the business tends to increase the risks. With the increased risk as per the operations of the company there are risks involved for the auditors where the auditors shall not be able to discover the material misstatements in the financial statements whether intentional or non-intentional (Philip & Michael, 2007). The risks involved in the audit of this company is analyzed and elaborated. The analysis of the management assertions... to what the...
8 Pages(2000 words)Essay
Auditing
...Auditing Part A 054 words Part B: 778 words March 27, Introduction The audit process entails determining whether the Havelock Europa Plc financial reports are true or correct (Havelock Europa, 2013). Untrue and incorrect financial reports include erroneous financial statement amounts (Arens, 2011). Errors are unintentionally misstatements are due to human errors. On the other hand, fraudulent financial statements include figures that were intentionally inserted by one or more company employees, possibly conniving with the external auditors. The research delves on the five areas of heightened audit risk. Auditing must prioritize auditing financial...
8 Pages(2000 words)Assignment
Auditing
...Corse 21 February “The Smartest Guys in the Room” Documentary the important individuals, their job and their responsibilities? A) Kenneth Lay - Lay is described as the founder of Enron and Arthur Anderson accountancy and audit firm. B) Jeffrey Skilling - Jeffrey was the manager in charge of human resource. As the manager in charge of human resource, his role involved creation of staff executives. However, he utilized poor financial reporting, special purpose entities, and accounting loopholes to hide dollars that amounted to billions, which originated from failed projects and deals. C) Andrew Fastow - He was the chief financial officer who with other executives misled the top management as the audit...
3 Pages(750 words)Coursework
Auditing
...Auditing Task Introduction The preparation of financial ments is in compliance with the requirements of company law. Different bodies provide the guidelines for preparing the financial statements. The reason for the framework for the preparation of financial statements is the difference in laws prevailing in different countries. In a bid to ensure conformity and uniformity, bodies such as the International Financial and Reporting Standards prepared rules and regulations that should be followed when preparing the financial statements (Foster & Greenawalt 1995, pp. 1-5). Precisely, the primary purpose of the accounting framework is to ensure that the users of financial information are provided with user-friendly...
6 Pages(1500 words)Assignment
Auditing
...Auditing Place Audit Committee Address: Sub: Deficiencies’ in the Internal Control System relating to Inventory The stock take for Farhan Muscat SAOG Company is made for the purpose of counting and calculating its all items in stock and recording the outcomes. Such audit activity will ensure the accuracy of the stock records; the value of stock will be verified and shown in the balance sheet through physical confirmation. The analysis of stock value will detect wastage at the early stage and will promote reducing and eliminating of goods. It will also help to reveal any weakness within an organizational system for control of stock. The number of deficiencies discovered by taking will...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Auditing for FREE!
Contact Us