Siqi Zhao Date: 1/14/2015 To: A424 Case 1.2 Subject: Case Questions 1. Since E&Y performs its auditing duties merely as an external auditor for Lehman‚ the scope of auditing work should be based on the audit needs from Lehman. On the other hand‚ it is very important for external auditors to keep the independent and objective standpoint in order to ensure their auditing opinions are effective. E&Y did not have a responsibility to be involved in the development process of new accounting
Premium Audit Auditing External auditor
parties are most responsible for the “crisis of confidence” on the part of the public in the accounting profession as following. • The parties who create these auditing standard rules‚ such as SEC‚ Auditing Standard Board. They should publish the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. • The auditors of the Andersen firm. They didn’t do their responsibility and didn’t follow professional standard rule
Premium Auditing Audit Internal control
Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence‚ audit planning‚ audit stages‚ internal controls‚ confirmations‚ sample size‚ obtaining evidence‚ inventory‚ warehousing cycles‚ Professional Rules of Conduct‚ and auditor’s legal liability. Each of these auditing concepts are explained and then applied to the scenario between Smackey Dog Foods‚ Inc. and Keller CPAs. Questions and
Premium Auditing Audit Internal control
7. A perceived lack of integrity caused irreparable damage to both Andersen and Enron. How can you apply the principles learned in this case personally? Generate an example of how involvement in unethical or illegal activities‚ or even the appearance of such involvement‚ might adversely affect your career. What are the possible consequences when others question your integrity? What can you do to preserve your reputation throughout your career? A perceived‚ or even likely more detrimental to one’s
Premium Audit Auditing
raised questions regarding the effectiveness and credibility of an Audit. The collapse Enron in November 2001‚ followed by the demise of Anderson was evidence of systematic risk in the US. The Ensuring crisis of confidence in financial reporting and auditing spread to other countries. The Accountancy Foundation Review Board which was at the time responsible for the independent oversight of the UK accountancy professional bodies took the leading role in the auditor independence review in the UK. In
Premium Auditing Audit Big Four auditors
Name: Course: Tutor: Date: Audit Planning Introduction Auditing is a vital activity‚ in every business activity. The International Auditing and Assurance Standards Board (IAASB) is the overall organization that sets international standards for assurance‚ auditing and other related fields‚ globally. The organization ensures that there is the harmonization of all international and national auditing and assurance standards to enhance uniformity‚ in accounting‚ globally (Spencer
Premium Auditing Audit Internal control
A. It is extremely important to ensure that the auditing profession meets its responsibilities to its clients. While working for a company to audit their financial information‚ they are also at the same time working for the public and regulators who rely on externals auditors to prove credibility to the financial information that companies release (Cooper‚ Coram‚ Richardson‚ & Leung‚ 2009). To assist in quality assurance‚ the profession‚ and government have developed multilevel framework which is
Premium Audit Financial audit Management
the SOX Act is intended to improve the transparency of the financial reporting. Financial reports are to be certified by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) creating increased responsibility and independence with auditing by independent audit firms. In discussing the SOX Act‚ we will focus on how this act affects the CEOs; CFOs; outside independent audit firms; the advantages and a disadvantage of this act; and changes that still need to be incorporated. The CEO’s
Premium Corporate governance Enron Internal control
Running Header: PCAOB REPORTING REQUIREMENTS A Practical Guide to the New PCAOB Reporting Requirements Valerie D. Roseberry Strayer University Professor‚ Dr. Ahmad Abudiab ACC 571 – Forensic Accounting Sunday‚ February 03‚ 2013 A Practical Guide to the New PCAOB Reporting Requirements The Public Company Accounting Oversight Board (PCAOB) is a nonprofit corporation that was established by Congress and placed under the jurisdiction of the Securities Exchange Commission. The Sarbanes-Oxley
Premium Auditing Audit
Livent‚ Inc. is a company that is very involved in the entertainment business‚ mainly in live theatrical productions. When dealing with a company in the entertainment industry‚ there are many risks that can be involved in auditing situations. A big risk that can be common is working with the higher officers of the company who are not strongly educated in the financial field. They are only familiar with the entertainment part of it and do not pay attention to a lot of the finances. It is common for
Premium Audit Auditing External auditor