Abstract The paper outlines the objectives of auditing, the auditor's opinion within the standard and how the "AuditingStandard ASA 200" of Australia conforms with the "International Standard on Auditing". The paper lists the separate divisions of the "AuditingStandard ASA 200" and relates that the "AuditingStandard ASA 200" is for the most part, the same in the public and private sectors of Australia in terms of standards and requirements of auditing. The paper also identifies the internal controls that are expected by auditors to be present in the entities. The paper shows how the "AuditingStandard ASA 200" has undergone recent reform in 2006, and relates that this will very likely drive up the costs and expenses associated with auditing, however, it is not believed that these reforms will serve to boost the confidence of the public of financial reporting in Australia.
Outline:
Objective
Introduction
Terms and Definitions
Objectives of an Audit Auditing Opinions on Financial Reporting
Mapping of AuditingStandards in Australia
Mixed Economy
Standards Reform and Increasing of Audit Costs Explored
Summary and Conclusion
From the Paper "This case study conducts an examination of the Auditing Standard in Australia and specifically the 'Auditing Standard ASA 200' published in April 2006. The Auditing Standard ASA 200 is issued by the 'Auditing and Assurance Standards Board'. The purpose of the 'Auditing Standard' is to: (1) set out the objective of an audit of a financial report; (2) to require the auditor to comply with relevant ethical requirements relating to audit engagement; (3) to require the auditor to conduct an audit in accordance with Auditing Standards; (4) to require the auditor to comply with each of the Auditing Standards relevant to the audit in determining the audit procedures to be performed and to not represent compliance with Auditing Standards unless all of the Auditing Standards relevant to the audit have been complied with; (5) requires the auditor to, if possible, perform appropriate alternative audit procedures and to document certain matters where, in rare and exceptional circumstances, factors outside the auditor's control prevent the auditor from complying with an essential procedure contained within a relevant mandatory requirement."
Abstract This paper discusses generally accepted auditingstandards and explains that they are guidelines, which auditors must follow while conducting an audit of a company's or government entity's financial statements. Specifically, the paper defines general, fieldwork and reporting standards as established by the American Institute of Certified Public Accountants (AICPA). The paper then applies these standards to financial operational and compliance audits especially under the requirements of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board (PCAOB).
Table of Contents:
Nature and Functions of Auditing General Standards Fieldwork Standards Reporting Standards How These Standards Apply to Financial, Operational, and Compliance Audits Audit Effects and Requirements of Auditors by the Sarbanes-Oxley Act and PCAOB
From the Paper "Reporting Standards are concerned with whether the financial statements are presented in accordance with GAAP, consistency, informative disclosures, and an expression of opinion on the financial statements that have been audited. The audit report must state whether the financial statements have been prepared in conformity with GAAP and whether or not there is consistency from one year to the next."
Abstract In this article, the writer explains that the Certified Public Accountant (CPA) statutory title is conferred on accountants qualified by passing the Uniform Certified Public Accountant Examination. The writer points out that the Generally Accepted AuditingStandards (GAAS) are a set of ten auditingstandards developed in 1947 by the American Institute of Certified Public Accountants (AICPA), referring to general standards, standards of field work and standards of reporting. The writer discusses that the general auditingstandards state that the person or persons performing the audit must have adequate technical training and proficiency as an auditor. In addition, the writer notes that the auditor must keep at all times an independent mental attitude; and finally, professional care must be exercised when planning and performing the audit and when preparing the report.
From the Paper "Other requirements needed to be fulfilled for a license as a CPA are stated in Section 7404, Article 149, Title 8 of New York's Education Law: in the first place, an application must be filed with the department; then, after the candidate's education and experience have been found satisfactory, a written examination must be passed; also, the fees issue must not be forgotten, as a two hundred twenty dollars fee must be paid to the department for admission to a department conducted examination and a one hundred fifteen dollars fee for each reexamination for an initial license, and also a two hundred ten dollars fee for each triennial registration period."
Abstract This paper discusses the different methods of accounting that are being adopted to be used in both the public as well as private sectors. It particularly focuses on generally accepted auditingstandards -- GAAS and the generally accepted government auditingstandards -- GAGAS. The paper discusses each method and compares their use in private and public sectors.
From the Paper "Since the yellow book as well as the SAS No. 63 includes the function as well as reporting levels of the GAAS, the defining terms of reportable circumstances as well as material defects carry towards internal governmental regulation structural reports. The bearable limit in case of a situation of reporting is less compared to material form of weakness, even though a material form of weakness is a kind of situation of reporting. Nevertheless the dichotomy among a material form of weakness and other situations of reporting sometimes would be intricate to find out. Few illustrations of the internal regulation report areas as regards accounting in relation to revenue and receivables are (i) Criteria: The computer area of services operations symbolize a substantial part of the entity's net income. Correct data of revenue are important to make dependable statements of finance. (ii) Situation: Income from the new forms of computer services operations is taken by the accounting system of the computer services. The accounting system estimates the funds owed by the clients for usage of computer and assignments completed on task and contract orders, accounts receivable that are unbilled and income received. (Broadus, 8)"
Abstract The paper shows that the increased globalization of companies has led to a dilemma for investors because accounting standards in various capital markets are not always reliable. It shows too that in an effort to increase the reliability of financial information in capital markets the SEC seeks to maintain the high quality of financial reporting in the U.S., while working towards establishing a high quality financial reporting structure worldwide. This paper summarizes the issues presented in the SEC's concept release on International Accounting Standards. These issues include: the five elements of global financial reporting; exceptions to rules for foreign private issuers using accounting standards that differ from GAAP; and the three criteria for assessing the International Accounting Standards Committee.
From the Paper "Rigorously interpreted and applied: The development of high standards does not ensure that the standards will be upheld. In order for the standards to be practiced consistently accountants have to understand the responsibility they have in applying these standards consistently and in a manner that is needed to ensure high quality. This understanding only comes when regulators including auditors, rigorously interpret and apply these standards to accounting standards around the globe. The SEC contends that IASC standards are not used in many capital markets, which makes it impossible for them to be interpreted or applied. In addition countries that do utilize IASC standards have yet to incorporate the new changes created by the IASC."
An evaluation of a Joint Legislative Audit and Review Commission (JLARC) audit of Virginia's social services system and of standards of quality for the school division.
Abstract This paper discusses and examines an audit of Virginia's social services system by the Joint Legislative Audit and Review Commission (JLARC). It then evaluates th JLARC audit on the standards of quality for the school division. The paper discusses how and why the audits were performed and examines the results that were obtained. It also looks at the strengths and weaknesses of the studies.
Table of Contents:
Operation and Performance of Virginia's Social Services System
http://jlarc.state.va.us/Reports/Rpt323.pdf
Which agency is being audited?
Who performed the audit?
Analysis of the JLARC Audit Research Questions and Methodology
Conclusion
Special Report: State Spending on Standards of Quality (SOQ) Costs, FY 2007
http://jlarc.state.va.us/Meetings/December07/soq07.pdf
What is the agency being audited?
Who performed the audit?
Analysis of the JLARC Audit Research Questions and Methodology
Conclusion
From the Paper "This report is an excellent example of a standardized government report. It clearly explains the methodology and intent of the project. However, it is lacking in the ability to meet changing, or unknown, needs of various school systems. The methodology is simplistic, considering the complexity of the issue of improving student outcomes. Perhaps in the future, the report needs to consider the performance of students on standardized tests, which is currently ignored using the current research method. They may need to adjust funding amounts based on academic performance, rather than number of students alone."
Abstract This paper presents a standard strategic audit of the media company Viacom Inc. It provides background information and Viacom's history of acquisitions. The paper looks at the external environmental factors and applies Porter's five-force model and presents a SWOT analysis of the company.
Abstract This paper answers in detail several questions relating to the financial audit committee as well as to a fictional audit of a given company. The paper examines several accounting and reporting practices on the part of the fictional company in relation to their income statements and balance sheets. The conclusion is that the company is considerably lax in its reporting standards.
Abstract This paper summarizes the ASB exposure draft on Consideration of Fraud in a Financial Statement Audit. This draft, which supercedes SAS 82, introduces new concepts and requirements to assist the auditor in detecting fraud. It discusses the definition of fraud, identifying risk of fraud, and general assessment of fraud risk. The summary outlines the appropriate response to each fraud risk identified through the analytical process, including evaluation of implications.
From the Paper "As the need for new standards and ways to look for this fraud got stronger, the AICPA auditing standards board (ASB) responded by issuing an exposure draft on Consideration of Fraud in a Financial Statement Audit. This exposure draft would supersede SAS 82, which is the current standard for detecting fraud in an audit. The exposure draft was not meant to change any of the auditor's responsibilities in a financial statement audit but rather introduces new concepts and requirements to assist the auditor in detecting fraud. Some of the major areas that the exposure draft discusses are the description and characteristics of fraud, discussion of fraud and professional skepticism, a wider range of inquiries, identifying and assessing risks that can result in fraud, evaluating programs and controls and responding to the results of the assessment. "
Abstract This paper explains that, after it was discovered that several major corporations in the U.S. had committed accounting fraud, it became the responsibility of auditors to discover evidence of accounting fraud in businesses. The paper discusses the impact of Sarbanes Oxley as well as SAS 99 on auditors and on the companies they audit.
From the Paper "Many decisions in accounting and auditing involve judgment calls. Nevertheless, there are rules that cannot and should not be broken. Over the last several years a number of major publicly traded corporations in the United States have committed accounting fraud and as a result have filed for bankruptcy protection. John Weinberg, in "Economic Quarterly", comments that these bankruptcies have resulted in the loss of hundreds of billions of dollars in stock value, wiping out the life savings of numerous investors and putting tens of thousands of..."
Abstract This paper is the examination of findings of the Security and Exchange Commission's (SEC), Blue Ribbon Committee (BRC) that was formed in September of 1998 to address concerns about various accounting practices. The committee's report, detailing their ten recommendations and the results they hoped to achieve, are examined in detail. The report was issued in February 1999, an since then several rules, regulations and standards have been enacted in the spirit of the committee's recommendations.
From the Paper "The Blue Ribbon Committee's report entitled Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees was issued in February 1999 and consisted of two sections (Grant Thorton). First, ten recommendations for actions to be taken by regulatory or standard setting bodies, such as the AICPA, SEC, NYSE, and NASD were presented (Grant Thorton). Second, five guiding principles for best practices that may be used by companies as building blocks in developing audit committee processes and practices were discussed (Grant Thorton). "
Abstract This paper discusses the approach one would take to prepare, compose and present a full marketing audit. For each given section of the marketing audit the following aspects are covered: types of data and information, analysis, start and finish dates and a list of challenges that might affect the execution of the audit. The result of this paper is to facilitate a full marketing audit.
From the Paper "The executive summary should encompass the broad conclusions of the research, or in this case, the marketing audit, as well as the recommendations resulting from the final analysis. The interested executive who wishes to more fully understand how the conclusions were reached and to further justify the rationale behind the recommendations may take the time to review the research material contained within the entire report. The executive summary should be a synopsis of the conclusions and recommendations and not a point by point analysis (Tips, 2005, p.23). Creating an engaging and informative executive summary ensures that top management considers the marketing audit a quality product supported by solid research."
Abstract This paper deals with the analysis of the auditing procedures. It looks at the issue of auditing of the audit company during the first stages and then follows the process through out the completion of the audit.
Abstract In this article the writer notes that over the past two decades, a number of changes took place that greatly altered the business world. The writer points out that some of these changes were external, such as ever-increasing globalization, growing competition and fast-paced technological innovations. However, some of the changes were internal. The writer relates that at the beginning of the millennium, for example, huge cases of company fraud rocked the structures of many organizations and that, as a result, the entire auditing field was put on trial. The writer maintains that Enron and similar financial disasters made many companies think and then think again about how to enhance their own internal audit functions. In order to find out more about auditing in present times, the writer interviewed, Robert Norwick, the internal auditor of a local mid-sized family-owned business.
Outline:
Background
Internal Audit Position
Need for Internal Auditors
Future Growth
Average Current Compensation of Internal Auditors
Certification
Organizations/Resources
From the Paper "Norwick works for a farsighted company that recognizes the value of prevention. They also realized that if they ever wanted to go public or acquired a public company, they would be accountable by legislation. Instead of using external auditors, they decided to expand their internal department. It hired him a couple of years ago after an extensive search to find the right individual for the new internal audit position. They put together a cross-functional search committee, including the human resources director and CFO, to get varied input. They also looked at additional skills beyond the traditional ones normally required for internal auditors. For example, they wanted someone who was just as comfortable in front of the desk talking with people as well as behind the desk crunching numbers."
Briefly looks at the differences between auditing for a non profit organization and auditing for a business and then focusses on the auditing process for a non profit organization.
2,025 words (approx. 8.1 pages), 4 sources, 2006, $ 80.95
Abstract The accounting function is central to the conduct of business for profit-making organizations and non-profit organizations alike, though clearly with a different focus for each. In both cases, the purpose of accounting is to compare the money coming in and the money going out and to do so following clear accounting rules set down by the profession and by legislators. This paper discusses auditing and the non profit organization.
