Essays on Auditing

Foreseen third parties (or Restatement Standard) . This approach is followed by the majority of states b. Expands the scope of who can potentially sue auditors to include third parties whose reliance on the financial statements can be reasonably foreseen c. Reasons given for allowing third parties without priority to sue: i. Increased liability of…

Volcom is a manufacturer of Boardsport related clothing and accessories. Based in Velcro Valley – south of Los Angeles – the company’s core values speak volumes about their marketing and sales goals and objectives. The Volcom philosophy, stated as, “youth against establishment”, implies that their aim is, at the very least, different from normal capitalist…

To provide students with an opportunity to learn (by doing) how auditors identify various client and audit risks. The case also provides students with insight into how a risk analysis ties into the strategic audit planning process. To provide students with hands-on experience responding to client concerns and issues. Often auditing students do not realize…

Its experience in Beer manufacturing company audits is quite limited, but has some experience with drinks manufacturers which can be relevant. Apart from evaluating experience, there is a need to check all the factors, which are in essence the objectives of Auditing. The core objective of an Audit is to provide an independent opinion the…

According to Gillespie, Lewis and Hamilton (2004:221) an audit is: “a scrutiny of the accounts by a qualified auditor who carries out checks on the figures so as to establish whether the accounts show a true and fair view of the results and the financial position of the entity. ” According to Wikipedia (2011a), auditor…

?AUDIT PLANNING Audit planning procedures are the first and perhaps the most important step in carrying out a successful audit. Without adequate planning, the likelihood of missing a significant risk area or encountering engagement-related problems increases considerably. As baseball great and noted philosopher, Yogi Berra puts it, “If you don’t plan on where you are…

Introduction Fraud is an intentional mis-representation of the accounting information by one or more parties in a bid to defraud the company. If immaterial it should be mentioned in the report to shareholders, if material, the auditor should qualify his report. However it should be noted that it is not the duty of the auditor…

The noise simply refers to the undesirable exposure to uncoordinated, unrefined sound of frequency higher than what the human ear is capable of adapting, to make out sensible interpretation through the relay to the brain through the auditory pathway. The effects of noise can be described as chronic or acute. The chronic effects develop over…

Describe the auditor’s responsibility for considering a client’s internal controls Describe the auditor’s responsibility to detect material misstatements due to fraud Identify red flags present during the audits of CUC International, Inc.’s financial statements, which suggest weaknesses in the company’s control environment (CUC was the predecessor company to Cendant Corporation) Identify red flags present during…

            Due to the passage of the Sarbanes-Oxley Act of 2002, there were certain limitations that emerge in conducting the auditing process of an auditor to its clients. Like, the auditor can no longer provide their clients with legal and expert services unrelated to the auditing of the auditor as well as the management functions…