Auditing

Assignment # 5 1. Visit the IMA website www.imanet.org . List, describe, and evaluate the requirements to become a Certified Management Accountant. What topics are covered on the exam for certification? Would you be interested in a career as a management accountant? In order to become Certified Management Accountant, the candidate need to be active member in the Institute of Management Accountants & Pay for the entrance fee. Candidate must complete the CMA certification within three years from…

♣ to the audit committee, as in the GM case. NYSE requirements require the audit committee to discuss policies with respect to risk assessment and risk management. However, the NYSE commentary clarifies that the “audit committee is not required to be the sole body responsible for risks assessment and management” [See Part I, Exhibit C Rule 303A.07(b)(iii)(D)]. If the board allocates risk responsibilities to the audit committee, these responsibilities should be thoughtfully addressed in the…

Madoff Securities Madoff securities, is a company created by Bernard l. Madoff Investment Securities LLC was founded in the year 1960 by Bernard Lawrence Madoff, who happened to be also be senior executive of the company. Bernard Lawrence started the company using accumulated funds of $ 5,000 from his business that involved the installation of sprinkler systems for wealthy New Yorkers. In his five years as executive, the company accumulated a fortune estimated at more than one billion dollars.…

1. A) First and foremost, Sue is correct in determining that Simon is attempting to perform employment discrimination. The Equal Employment Opportunity Commission has made it clear that sex and age are not to be the basis for termination; Simon has made it clear that he has no problems with Betty’s performance – only the fact that Betty is not young and pretty. However, Sue must keep in mind her priorities – she is a CPA first, not an EEO official. In this case study, the company is nearing the…

1. Identify accounting rules of revenue recognition and describe the inadequacies in accounting context of using bill-and-hold to recognize revenue at Halliburton. According to the accounting principle revenue recognition, it is the function when revenue is reported and recognized when a function has occurred. Under GAAP, revenue recognition should recognize a measurable amount of revenue once a certain transaction has been fully made. That would be the case, when certain types of goods or…

public to question the role of the auditors in corporate governance. The numerous cases of corporate scandal have created crisis of confidence in the accountancy profession. Though not every case of corporate scandal and failure can be attributed to auditing failure or auditor’s negligence, some high profile cases as Enron, WorldCom, Parmalat, AIG, Xerox, Adelphia, Lehman Brother etc. were substantially linked to audit failure (Coyle,…

provide a form for providing details of the occurrence(s). Alternately, customers will be provided with the phone number of Company X’s Human Resources Department in the event that they prefer to report violations verbally. b. Auditing Employee Misconduct i. Internal Ethics Auditing 1. Theft and Loss: Each year representatives from Human Resources, Property Management, and Security Departments will collaboratively review capital equipment losses and look for year-to-year and…

Following the preliminary engagement activities, the audit team should go about setting an audit strategy and have an audit plan developed. The strategy will go over aspects of how the audit procedure and discuss the scope, timing, and direction of the audit itself. This well help determine resources that the audit team will need in order to carry out the audit including experience of auditors, and the industry specific skills that may be necessary. Amount of resources should also be taken into…

industry, the mean likelihood of them receiving a going-concern audit opinion is 18%. However, when audited by a firm that does specialize in their industry, the mean average increases to 28.4% . This shows that firms are much more conservative when auditing clients for which they are an industry specialist. Knowing that conservatism is an important aspect of the quality of accounting information, companies should be encouraged to select auditors that are specialists in their industry. However,…

JPMorgan Chase & Co is a worldwide enterprise in banking and financial services, headquartered in New York City. They operate in more than 100 countries and employ about 235,000 people. They specialize in market, treasury and investor services, as well as investment, management, and private banking. The corporation takes the time to focus on employee benefits, offering insurance for vision, dental and healthcare and providing savings and employee stock purchase plan. In 2015, JPMorgan Chase…