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Audit committee, in the real corporate world, has been existed for long time and the perception of its roles and responsibilities are evolved time-by-time. This post...
Internal audit workpapers can be seen as a “link” between actual internal audit procedures and the reports issued as results of an internal audit process, created...
Internal audit role, performed by internal auditors, requires core competencies. This post lists seven internal audit core competencies internal auditors should have—beyond internal audit standards—for planning...
Internal control over financial reporting is essential information an auditor supposed to be able to draw during an audit session. Why? A client’s internal control state...
Basically, analytical procedures consist of evaluations of financial information made by an auditor of plausible and expected relationships among both financial and non-financial data. The analyses...
The Internal Revenue Service (IRS) awarded 4,257 individuals who claimed more than $151 million in undeserved tax deductions for 2009 stimulus package program designed to boost...
The SAS does not require the independent auditor to use the work of internal auditors. However, SAS 55 (Section 319), Consideration of Internal Control in a...
To form the basis of an opinion on the fairness of the financial statements, the third generally accepted fieldwork standard requires the gathering of sufficient competent...
The auditor is not required to test controls to determine their operating effectiveness. However, the increased depth of the auditor’s understanding of internal control may encourage...
More and more GAAP pronouncements require the use of fair value measurements when presenting and disclosing certain assets, liabilities, and components of equity in the financial...
In every audit, the auditor is obligated to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material...
Accounting firms don’t live on audits alone. Virtually all accounting firms perform some sort of consulting or advisory services (such as tax-related work) in addition to...
The internal audit department’s efficiency [in general] can be difficult to measure; What kind of measurements a controller or CFO possibly performed? What to measure? How...
Management is responsible for designing and implementing controls to prevent, deter and detect fraud. AU 110.03 (Responsibilities and Functions of the Internal Auditor) states Management is...
Public accounting generally entails a fairly rigid, hierarchical career path, as follows: Audit Staff Auditor (year 1-3). Staff auditors perform the meat of an audit,...
Problem: 8. Which of the following would an auditor most likely use in determining the auditor’s preliminary judgment about materiality? a. The anticipated sample size of...
AUDIT RISK Problem: 1. As the acceptable level of detection risk decreases, an auditor may a. Reduce substantive testing by relying on the assessments of inherent...