Auditing

Introduction: Forensic audit includes lots of activities and it is not part of regulatory guidance. Forensic auditing are the wide range of activities for investigation purpose, which are performed by accountant in practice. The work of the forensic auditor is to investigate the financial affairs of the organization and most importantly includes investigation of any fraudulent activity. Internal auditor can use a third party forensic auditor for this purpose and than report the findings to the…

Newham is in the cosmetic manufacturing business with competitors being Revlon and Avon products. This is a highly competitive industry with many different players in the industry, both large and small companies. The industry is regulated in the United States by the Food and Drug Administration (FDA), however in the past the FDA has had limited power to regulate cosmetics. “Concerned about generation old regulations that have left it with little power to ensure the safety of thousands of…

understand and provide the right, end-user solutions. About Nationwide Title Clearing Nationwide Title Clearing Inc is a Palm Harbor, Florida based bond and mortgaging company. The company specializes in providing research, document processing and auditing service to US based residential mortgage servicers, investors and mortgage lenders. According to Manta.com, the privately held firm was established and incorporated in Florida 1992. The company has a strong workforce of over 150…

Section 404 is linked to section 302 since required an annual management assessment of Internal Control and an external audit that needs to provide an opinion on its reliability. The section requires a report that acknowledge the responsibility of management for creating and maintaining internal controls in order to manage the risk that can potentially cause inaccurate, fraudulent or incomplete data to be disclosed to stakeholders. The report should also contain the effectiveness of the internal…

inspect damaged house. External confirmation is required (ASA 505). In addition, why he was successful based on the two reasons. First, in terms of avoiding detection from auditors, he turned their attention to his legitimate carpet business. Second, auditing firms were competitive so as to not lacking of carefulness where the phony was from. Overall, Minkow case caused by the auditor’s neglects, in terms of stopping fraud happens again, auditors need to concentrate on details and real…

Introduction Thank you for your consideration on potentially interested in having audit for your company, Scottish Treats Ltd and reaching out to our firm. The queries you laid out in your letter are a great sources of information in order to determine that the company needed in having an audit. In the next part of the letter, I will be explaining the answers to your queries and clearly clarify whether the company need in having an audit. The information for the company hoping to go for listing…

During the time period of 1990 to 2000 financial statement fraud was pretty common. Various firms were engaged in financial fraud without thinking that the investors, and other stakeholders rely on those financial statements and the opinion of the auditor on those financial statements. The Sarbanes-Oxley Act was created because of the multiple accounting scandals of WorldCom & Enron in July 30, 2002. Because of that the investors lose billions of dollars, this negatively impacted financial stock…

satisfy the auditing of IT controls over financial reporting. The objective of auditor in an audit of IT controls over financial reporting is to express an opinion on the effectiveness of the company’s internal controls over financial reporting. As a company’s internal control cannot be considered effective if there are any material weaknesses, the audit must be planned in a way to obtain appropriate evidence that is sufficient enough to obtain reasonable assurance. (Source: Auditing standard…

and enforces compliance with the exact dictates of the Sarbanes-Oxley act. Title II institutes auditor independence in order to limit conflicts of interest. It also delivers new auditor approval obligations, reporting requirements, and restricts auditing companies from supplying non-audit services for the same clients. In Title III corporate responsibility is established; this means senior executives take individual responsibility for the accuracy and completeness of corporate financial…

Principles (GAAP) (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2015). This opinion is the conclusion reached by the auditors after tests of controls and substantive procedures that have been performed during the audit engagement. Paragraph 10 of Auditing Standard 3101 “Reports on Audited Financial Statements” states the type of opinion the auditors may express in various circumstances (PCAOB, 2016):…