Auditing

PCAOB Rule 3400T System of Quality Control for a CPA Firm 's Accounting and Auditing Practice; QC §20.01. Each registered public accounting firm is required to develop, implement and maintain a system of quality control for its accounting and auditing practice. A registered public accounting firm has a responsibility to ensure that its personnel comply with the professional standards applicable to its accounting and auditing practice. A system of quality control is broadly defined as a process…

KPMG’ explicit responsibilities for auditing MS&Co included: • KPMG’S audit Procedures relative to MS&Co’s assets at BAC were to obtain a confirmation from BAC of assets on held on MS&Co’s behalf • To search public records to ensure no adverse issues were noted for BAC relating to any regulatory actions. In September, 2014 MS&CO’s investors and creditors initiated a lawsuit against their auditors, KPMG, on the charge that they conducted a substandard audit, while also failing to follow GAAS.…

The purpose of generalized audit software programs is to perform a variety of auditing operations on the computer files used to store the information. The steps to be followed by the internal auditor to use generalized computer audit software include: • planning and designing the audit application. • ensuring that the output and…

A discussion to the question asked by Congressman Richard Shelby of the House of Representative about the independence of auditors establishing long-term personal and professional relationship with companies by auditing those companies. Respectively companies that retain the same auditors for long period of time may perhaps question their independence and objectivity. The failure of financial reporting at Enron, WorldCom, Lemon Bother and others, led to financial reporting reforms. Audit firm…

environmental matters and performance auditing. Since the OAG inspects all government financial statements it encourages accountants to behave ethically. While the OAG is typically seen as an…

and seven internal audit officer. Every audit manager was responsible of different section of audit. For example, one manager and two officers were auditing the bank’s branches in Kabul and other provinces of Afghanistan. The second manager along with two officers were responsible of finance department audit. While three other officers and I were auditing all other departments of the bank. Maqsood Khan was one of the officers who was working with me. He was graduated from Islamia University…

I believe that the auditors in this case, Ernst & Whinney, should have great blame in not having the sufficient information and knowledge to fall into the pressure of the bribes committed by Minkow and analyze the fraud that was occurring. The upper management in ZZZZ Best made the financial information seem perfectly fine, therefore the auditors were unable to identify any miscalculations that would then lead to fraud. Minkow and his company for years kept on staling the fact that his insurance…

Accountants who are biased may do unethical decisions while auditing a client. There are three aspects to influence the professional accountants’ judgement. Firstly, accountants may understand various information in different ways due to the ambiguity bias and therefore they form self-serving conclusions. Furthermore…

Since certified public accountants have a responsibility to users of financial statements, it is necessary for auditors to be independent both in appearance and fact. An auditor should be capable of upholding an impartial attitude throughout the auditing process and gain the faith and confidence of others on his or her independence. It is therefore, necessary for auditors…

Phar-Mor Inc. was one of the largest super discount drugstores in the early 1980’S.The Company was a complete success with over 300 discount super stores across the United States and employing thousands of workers. The company’s first signs of financial difficulty became obvious in 1988 as speculation increased about Phar-Mor’s decreasing profit margins. The fraud team consisted of several former auditors, including auditors who had worked for Coopers & Lybrand on prior Phar-Mor audits. The…