CHECK THESE SAMPLES OF Accounting ...Auditing assignment
...Running Head: AUDITING & ACCOUNTING ETHICS Auditing & Accounting Ethics of the of the Auditing & Accounting Ethics
Question 1:
"Independence is potentially affected by self-interest, self-review, advocacy, familiarity and intimidation threats".
SOURCE: Hayes, Dassen R., et al, (2005) Principles of Auditing - an Introduction to International Standards on Auditing, 2nd Edition, Pearson Education Limited, Harlow, p.87
Required:
Evaluate the difficulties of retaining auditor independence and adopting an ethical approach to auditing in view of the comments in the extract...
23 Pages(5750 words)Essay
...Auditing and Accounting Ethics
Question 1:
It is often argued that the “economic incentives associated with different levels of auditor independence threats and litigation risk influence auditors’ evaluation of information and their subsequent reporting choices”. (Blay)
The most important quality an auditor posses is the independent and unbiased approach. In many cases self-interest has been considered as the main hindrance in the independent and fair approach of auditor. Many regulations have been introduced in order to ensure the independence of auditors. The Sarbanes-Oxley Act of 2002 is considered as an important addition to the regulations ensuring auditor’s independence. The act suggests...
13 Pages(3250 words)Essay
...Topic: Auditing & Accounting Ethics Style: Harvard Pages: 12 ANSWER The value of auditing depends heavily on the public's perception of the independence of auditors. It is not surprising that independence is the first subject addressed in the rules of conduct. Whether independence is impaired depends on the nature of the threat, the specific safeguards applied to reduce or eliminate the threat.
Hayes, R., et al (2005) argued that a self-interest threat occurs when a member firm or member of the assurance team could benefit from a financial interest or other self-interest conflict with an assurance to client. Examples of circumstances that may create this threat include but are not...
12 Pages(3000 words)Essay
...should ask for the information that could verify that the transactions in the accounts actually occurred, no transaction has been concealed or kept secret and finally whether these transactions have been recorded in correct currency amounts.
Audit Evidence
The auditor should ask the management for the evidences regarding the information put forth by the company's information system. This will depend on the different audit procedures used by the auditor. If the auditor considers comparing budget data with the actual figures, then he should access the necessary information to ensure the correctness of budget data.
Acknowledgement of Internal Control Efficiency
It is important for the...
4 Pages(1000 words)Assignment
...their independence to be affected by self -interests. External auditors must have the minimum requirement of passing the chartered accountants examination. Auditing theory and practice states that auditors must not sign as external auditors if their self interests affects the independence of auditors. The external auditors must be both independent in fact and in appearance. The auditing rule states that the auditor must not have any material self interest in the clients. An auditor has self interest if the auditor, the auditors spouse and children owns a share of stock or two in the audit client(Pollitt et al. 1999, 30). The Companies Act of 1948 is the legal framework...
12 Pages(3000 words)Essay
...Topic: Auditing & Accounting Ethics Style: Harvard Pages: 11 An attempt has been made in this paper to comprehend different aspects of auditing specially emphasize on threats of independence, auditors liability, ethical dilemma and relationship between internal and external auditor with social responsibility. Question 1,3,4 and 2b have been attempted. In question 1 the different threats of independence as it is one of the most crucial characteristics of auditor. In question 2b, the ethical dilemma of the employee of a firm has been analysed with different point of view. In question 3 the liability of an auditor and the methods of limiting the liability have been discussed. In addition, in question 4 the responsibility in relation... to...
10 Pages(2500 words)Essay
...audits? Problems that smaller businesses face in rationalizing their accounting systems might not be there with larger companies. In a way Big 4 and other larger audit firms are loosing opportunities of presenting professional excellence that are provided by smaller audits or professional assignments It is a two way traffic. If smaller firms do not have experience of larger audits, then Big 4 and other larger accounting firms also do not have experience of difficulties faced by smaller auditors on their way to emerging as larger companies. It must not be forgotten that difficult scenarios are exceedingly available with...
6 Pages(1500 words)Essay
...Auditing and Accounting Ethics Question Introduction The matters of purpose of audit and independence of auditors have been discussed in an depth study contained here in this write up. The purposes of auditing of financial statement has been discussed for both GAAP and non- GAAP financial statements. Theory of auditors’ independence is discussed from the point of view of its practical approaches.
a) Purpose of an auditAuditing is of different but here we are concerned with financial statement auditing. Basically the propose of financial audit is to extend a creditability to financial statements...
12 Pages(3000 words)Essay
...Auditing assignment Table of Contents Table of Contents 2 Factors that triggered an issuance of going-concern opinion per ASA 570 3 Application of factors to Forest Enterprises Australia Limited 4
Mitigating factors proposed by management 4
Factors that triggered an issuance of going-concern opinion per ASA 570
The four factors relating to the issuance of going concern opinion (ASA570) include-
Financial
Arrears in dividends or their discontinuance.
Negative “operating cash flows” reported in the prospective or historical financial reports.
Adverse financial ratios.
Indication of financial assistance withdrawal by creditors and debtors.
Operating
Loss of important management personnel without...
2 Pages(500 words)Essay
...Question CAS 89) The auditor shall perform alternative audit procedures to obtain sufficient appropriate audit evidence regarding the existence and condition of inventory
Inspection of documentation of the subsequent sale of specific inventory
Recalculation o the schedule of goods purchased and the and sold to confirm with the value of stock at hand
Inquiring directly from the suppliers on the nature, quantity and value of goods sold
Performing ratio analysis to determine the consistency or inconsistency in the inventory; such as inventory days
Question 2
The auditor will have to test the inventory based on samples and is required to determine the design, size and selection of samples from the population...
2 Pages(500 words)Assignment
