Auditing Essays Examples

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Audit Quality and Agency Cost

Words: 4858 Length: 15 Pages Document Type: Essay Paper #: 22210448

Audit Quality and Agency Cost

Since the advent of industrialization, there has been the presence of a bond between the people who invest and the people who manage those investments, forming a vital relationship amongst the two groups. Although with the rise of such relationships, the soaring issues of trust and confidence have been a hindrance in economic growth. Viewing the high percentage of the capital of investors or shareholders in companies being utilized to cover the costs of bearing these barriers, it is clear that the audits are being considered a necessity in the business model for the shareholders so that they are assured that their investments are secure and are ensured that they are being properly rewarded in return.

The fundamental purpose of audits has been to reinforce trust and promote confidence in the financial information that the management publishes for the shareholders. Bearing this in mind, it is vitally important that the audit services one receives are of adequate quality so that its purpose is fully served and the users of the financial information feel safe with their investments.

Being a qualitative measure, it is necessary to understand the ways to assess and maintain a high standard…… [Read More]

Bibliography:
Anderson. (February,2002). Worldcom Audit Committee Report for Year Ended December 31, 2001.

Audit Sampling. (n.d.). Retrieved from accaglobal: 5. http://www2.accaglobal.com/pubs/students/publications/student_accountant/archive/SA_Aug11_auditsampling_F8.pdf
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Audit Plan Outline Over the

Words: 913 Length: 3 Pages Document Type: Essay Paper #: 92695474

The most notable include:

The inability to account for risks from customers with poor credit.

The way sales are recorded with the income booked once the transaction is closed (versus when the income is received).

Preparing for sudden shifts in the economy or from competitors.

Substantive Tests

The substantive test is when we are determining if the current strategy will be effective in addressing the risks facing the firm. This is accomplished through examining the accounts receivables.

The substantive tests for KCN revealed that there are a number of risks to the balance sheet to include:

High inventories.

The use of allowances for bad debts.

The combination of these factors can cause the firm to face more risks. The best way that this can be addressed is through the test of balances. This is when the transaction must be posted in the ledger and balance sheet simultaneously. (Srivastava, 2008, pp. 577 -- 618)

The Final Reporting Steps

The final reporting is when there will be a report released to upper management, the board of directors, the accounting firm and regulators. Inside is where there will be a discussion of the numbers and what they mean.

In the case of KCN,…… [Read More]

Resources:
Kumar, R. (2005). Auditing Principles and Practice. New Delhi, Prentice Hall.

Palmon, D. (2011). The Accounting Standards. Group Decision and Negotiation, 20 (2), 165 -- 183.
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Audits in the Field of Nursing Both

Words: 663 Length: 2 Pages Document Type: Essay Paper #: 15456071

Audits

In the field of nursing, both qualitative and quantitative data are useful and needed. The qualitative approach comes much from the patient and/or stakeholders. How does the patient "feel," what are some not quantittiative things one notices. Often, though, in charting a patient, a medical professional is able to quantify some of the qualitative data (e.g. complexion pale or wan; skin temperature, palor, attention span, etc.). The quantitative data are data that can be easily measured and work in tandem to provide a way to make a cogent diagnosis for the patient. Qualitative data is also part of the nurse's ability to make judgments about the quality and morality of situations, indeed, taking the principles of nursing ethics (beneficence, autonomy, etc.), many of those decision types are qualitative based. Some of this is, of course, related to secondary data sets from other research studies outside the purvue of patient-care, and aligns with a nurse's ability to improve their technique and understand research from other areas.Medical records verify notes over time, recording observations, the administration of drugs and therapies, orders from the doctor, test results, x-rays, reports, etc. The maintenance of complete and accurate medical records on an ongoing basis…… [Read More]

Sources:
The How's and Why's of Chart Audits. (2005). Duke University Medical Center. Retrieved from: http://patientsafetyed.duhs.duke.edu/module_b/chart_audit.html

Medical Chart Audits. (2011). AAPC Physician Services. Retrieved from:

http://www.aapcps.com/services/audit-services.aspx?gclid=CKWTkpL3p6sCFRRSgwodkF4E4w
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Havelock Europa Audit Risk

Words: 1648 Length: 5 Pages Document Type: Essay Paper #: 94650859

Auditing Risk

Areas of Heightened Audit Risk

Audit risk = Inherent risk x Control risk x Detection risk. Audit risk can be referred to as the probability that an audit team will give an outright and absolute judgment when the financial statements of an institution are in actual fact materially misstated. To start with, inherent risk is the possibility that material frauds and errors will get into the accounting system employed to cultivate and improve the financial statements. On the other hand, control risk is the possibility that the internal control system of a client or company is not able to prevent or detect material misstatements (Griffiths, 2005). Lastly, detection risk is the probability that an auditor's audit procedures will not able to detect material misstatements. Taking into consideration the financial statements and the management commentary in the annual report of Havelock Europa there are a number of areas of heightened audit risk concerning the audit of the company.

1. Revenue

One major area of risk in the financial statements of Havelock Europa is improper revenue recognition. In particular, one of the main audit risks concerning revenues is the fraud or material misstatements which arise from revenue recognition and also…… [Read More]

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Fraud Audit and Investigation Define

Words: 681 Length: 2 Pages Document Type: Essay Paper #: 22048440

During this process you would want to collect any kind of financial information that will be relevant for the completing the audit. Once this takes place, you would want to establish a follow up interview with key personnel in the company. The idea is compare and analyze what you are being told by executives with actual documentation. Where, you would look for inconsistencies when comparing what the person is saying with: various financial numbers and then using common sense. At which point, you would ask them a series of questions and pay attention to changes in their body language and the way they are talking (to determine any kind of inconsistencies through non-verbal cues). (Siegle, 2008) (Beasley, 2008)

Discuss how the Audit Evidence will be evaluated and Conclusion Drawn

The audit evidence will be analyzed based upon comparing the actual numbers, with the various responses from executives at the company. In this case, we are looking for any kind of inconsistencies between: the actual numbers and what executives are saying. Those areas that come into question will be subject to further investigation and analysis. The idea is make certain that all of the various pieces of financial information are as…… [Read More]

Sources:
Beasley, M. (2008). GAAS Guide 2009. Chicago, IL: CCH.

Siegle, J. (2008). The Vest Pocket CPA. Hoboken, NJ: Wiley.
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Planning the Audit of the

Words: 729 Length: 3 Pages Document Type: Essay Paper #: 26947363

(the Company) to the Loan Agreement with Western Financial Services (the Lender). For the purpose of providing you with this letter, other than as set out herein, we have carried out the audit and review of the Company's financial information

Report

Based solely on the procedures set out in the engagement letter dated October 9, 20X5 (see Attachment 1) we confirm that the Company is in compliance with all of its restrictive debt covenants with the Lender.

Our report as set out herein is confidential to the addressees of this letter and should not be made available to any other party without our written consent.

Yours faithfully

Charles Adam

Partner cc Chairman of the Board of Directors, Keystone Computers & Networks, Inc.

Memo

To FILES

From Warren Love

Karren West

Date November 14, 20X5

Subject Keystone Computers & Networks, Inc.

Revenue recognition - Accounting for the sale of extended warranty contracts

ISSUE:

When to recognize revenue from sale of extended warranty contracts?

At what amount should revenue from sale of extended warranty contracts be recognized?

RESOLUTION:

FASB and IASB had a joint revenue recognition project wherein they developed a conceptual model for the 'asset and liability approach' to defining and…… [Read More]

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PCAOB Staff Audit Practice Alert

Words: 544 Length: 2 Pages Document Type: Essay Paper #: 65265676

Once this has happened, the auditor is in a position to assess the risk of material misstatement in the financial statements. The auditor should consider, for example, management's selection and application of accounting principles in assessing the risk of fraud. Some red flags identified in the alert are when the transaction is overly complex; whether or not management has discussed the accounting of such transactions; if management is placing undue emphasis on accounting treatment of a transaction; if transactions involve third parties, including special purpose entities; and if the transactions do not have sufficient substance.

The alert prescribes a course of action for situations when an auditor believes that there is a significant risk of material misstatement. The auditor must identify his or her findings in an engagement completion document; document actions taken to address significant unusual transactions and must state the basis for the conclusions reached.

In the Lehman Brothers situation, the auditors had reason to believe that the $50 billion in Repo 105 transactions that were off-balance sheet constituted a significant unusual transaction. Yet the auditors at Ernst & Young signed off on the statements. This PCOAB alert highlights the course of action that the auditors should have…… [Read More]

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Framework for Awarding Audit Contracts by US Government Departments Agencies

Words: 15848 Length: 58 Pages Document Type: Essay Paper #: 43068824

awarding audit contracts by U.S. government departments and agencies

Audit Management

Red

Rationale for and Objectives of the project

main and secondary

Desktop or literature search

Rationale for Search Methodology

LITERATURE/DESKTOP RESEARCH

Authoritative sources

Desktop Findings

Justification for audits

Evolving role of auditors

Types of audit contracts

Understanding the Audit Process

Best practices and benchmarking

Terminology

Case Studies

Audit management is a fundamental element in government accountability, control and performance management. Certainly there is justification within the Federal government to conduct audits of contracts for the procurement of goods and services.

It is imperative that Federal programs and agencies obtain reasonable assurance that the vendors they are dealing with are providing fair and adequate services based on contract specifications and government regulations. Federal agencies need to insure that their basic financial statements are free of material misrepresentation, that their performance is in compliance with certain expressed provisions of laws, regulations, contracts and grants and that non-compliance would have a direct and detrimental effect on the determination of financial statement amounts.

Whether a company is a manufacturer or a service provider, to be successful in working with government agencies, its management should be concerned to ensure that:

products move smoothly and…… [Read More]

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Duration Supply Chain Audit Methodology

Words: 3106 Length: 11 Pages Document Type: Essay Paper #: 77842343

As noted at the conclusion, these metrics and measures would be qualitatively analyzed by the consultant and quantitative values assigned for each of the questions which would correspond to the five general dimensions under consideration in the short-duration supply chain audit; high attribute examples would be assigned a "1," in this analysis, and a low-attribute example would receive a "7."

Table 1

Short-Duration Supply Chain Audit Questions and Corresponding Performance Indicators

Question

High Attribute Example = 1

Low Attribute Example = 7

Does formal product/service profiling and rationalization occur routinely to minimize the risk of obsolete inventory and other costs? What is the reservation capacity?

There are extensive programs in place to minimize the risk of obsolete inventory and other costs.

There are no programs in place to minimize the risk of obsolete inventory and other costs.

How well integrated are the company customer facing processes to the enterprise information systems?

Real-time integration is achieved, not only within the organization, but also across our value chain partners

There is little integration

Does the system interface with other company functions and suppliers?

Yes.

No.

Are logistics parameters (leadtimes, inventory carrying costs, etc.) taken into account when leads are negotiated with clients…… [Read More]

Sources:
Auditing the procurement and supply chain processes. (2009, June 5). International

Organization for Standardization (ISO) 9001 Auditing Practices Group and International
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Functions and Mandates of Regulatory Bodies in Accounting and Audit Practices

Words: 915 Length: 3 Pages Document Type: Essay Paper #: 95617761

Regulatory and Compliance

Auditors, consultants and security professional owe to their clients stakeholders a duty of care in the performance of their duties. The duty of care requires these professionals to observe prudence in all circumstances regarding their actions and evaluations (Boynton & Johnson, 2006).

Contribution of the PCAOB towards Independence of Auditors of Public Companies

It is sometimes ignored the contributions made by PCAOB towards improving corporate governance in public companies by generating better focus upon accounting and audit practices. A series of failures in the various functions of a public corporation to protect the investing interest of public corporations contributed the creation and enactment of Sarbanes-Oxley Act (SOX). Despite there being criticisms against the effects of PCAOB the board has contributed towards a higher degree of professionalism on public corporation auditors. An Important contribution of the board towards this independence is through the assertion that the audit companies should be subject to the securities law and concerned matters. Thus, the audit company is not likely to conspire with the corporation's directors to misrepresent facts in accounting and auditing reports. This requirement protects the investors' interest by ensuring resultant audit reports are accurate, informative and independent. Should the auditing…… [Read More]

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Marketing Audit on a Local

Words: 4570 Length: 16 Pages Document Type: Essay Paper #: 6877173

S. Navy has an excellent product mix as they are working to attract, recruit and retain key members of each position segment they have. The recruitment of the most highly skilled areas including nurses and physicians is the most pressing and requires the greatest level of consultation and one-on-one recruiting effort. The recruitment of Naval physicians is a critical need; it's clear from its position on the website and often there are face-to-face discussions and recruitment efforts on the part of the U.S. Navy to gain physicians directly into their branch of the service.

SECTION 3

How is the product (good and/or service) of the organization you are auditing, currently distributed?

The U.S. Navy distributes it current set of recruitment offices throughout 26 American cities, which are accessible from the following Website: http://www.cnrc.navy.mil/.The focus of each of the 26 city sites is on tailoring the recruitment process to regionalized needs by each market on the one hand and each position opening on the other. The U.S. Navy's approach to appealing to recent high school and college graduates through the sponsoring of NASCAR events and a car are cases in point. Overall the messaging looks to provide a sense of being…… [Read More]

Resources:
Friedman (2005) - Thomas R. Friedman, author. The World is Flat. Farrar, Straus, and Giroux. New York, NY. Published 2005

Guided Selling (2001) - Defining your direction in guided selling AMR Research Report. November 1, 2001. Retrieved from the Internet on June 3rd, 2007 at http://www.lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf
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Marketing Audit a Market Research Plan Is

Words: 2256 Length: 7 Pages Document Type: Essay Paper #: 69551210

Marketing Audit

A market research plan is the systematic study that deals with the gathering and analysis of the concerned data to assess the role of a certain company in the market and persuade the customers to by their products. Marketing research assist the companies to design better strategies for future with respect to customer behavior (Pickett, 2010).

Marketing audit: It is a systematic and comprehensive evaluation of a company's activities and the results achieved due to its capabilities .In order to carry out marketing research one must understand the role of marketing audit in research.

PURPOSE OF THE AUDIT (Wal-Mart)

Marketing audit is necessary because the Wal-Mart has to compare its performance with the constantly changing market environment. There are certain micro and macro environmental factors that affect the business and marketing operations of the retail business of Wal-Mart largely. A detailed description of them is as under:

Microenvironment: Micro environmental factors are the internal factors of the company that have a direct impact on the Wal-Mart's business operation. The company has control over these factors and by controlling these factors; the company can improve its performance (McDonald & Leppard, 1994)

1. Customers:

Customers are the beneficiary of the…… [Read More]

References:
Cangemi, M.P., & Singleton, T.W. (2003). Managing the Audit Function. New York: John Wiley and Sons Ltd.

D'Souza, S. (2009). The Brain Audit. Chicago: Psychotactics.
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External Corporate Communications Audit Demonstrate How You

Words: 2039 Length: 5 Pages Document Type: Essay Paper #: 77982947

External Corporate Communications Audit

Demonstrate how you would conduct an external corporate communications audit

An external corporate communications audit is a critical undertaking that must be carried out in every organization. Auditing processes are common when it comes to the realization of the basic avenues of growth and development in organizations. In order to realize the best fruits of service from the department of communication, the channels of communication should have to be renewable or accessible for audit. The first section will be used for major auditing activities. The second avenue of the auditing process will involve the personnel that have been put in place as a measure of oversight between the channels of communication, communication processes, and the major pillars of communication within a corporation. Furthermore, it is important to realize the importance of having a sound truth and recognition avenue where the auditing processes are to be executed within a regional standardized avenue. In such situations, the auditing process will begin from the examination of the available avenues of growth and development of communication (Institutes for Organization Management, 1965).

Auditing should begin with the examination of the necessary tools of trade within the communication channels. The channels of…… [Read More]

Sources:
Institutes for Organization Management. (1965). Studies in organization management:

Association. 1st-[3d] year. Washington: Chamber of Commerce of the United States,