External auditor

AICPA The role of the external auditor is to identify items that might be causing DOW’s transfer of financial assets account to somehow make their financial statements materially misstated by designing and executing auditing tests. As I stated before DOW trades accounts receivable with many third party clients and conduits, in effect making the transfer of financial assets section of their company to be very complicated and susceptible to fraud. When an auditor is approached to complete an…

Grant Thornton's decision to completely rely on Jack Greenberg, Inc’s delivery receipts to perform the company audit is the controversial issue in the case given. It had justified that the independent auditor relied on the delivery receipts as the audit evidence based on the ‘segregation of duties’ system. The case here explained that JGI’s internal control procedures for inventory had been executed by different person as the purchasing, receiving and approving functions are performed by the…

that that the categories of objectives should be one that follows (a) strategic objectives: which are goals aligning with the company’s mission/vision (b) Operational objective which imbeds performance and productivity (c) effective internal and external reporting, financial and non-financial (d) compliance with applicable laws and regulation. The COSO framework does not only reflect the assessment of hard controls such as authorization, supervisory and segregation of duties, but also soft…

External confirmations are audit evidence gathered directly from a third party. The confirmation can be written or electronic, however if the confirmation is electronic the confirmation must be followed up with a phone call. There are two types of external confirmations: positive and negative. A positive confirmation warrants a response from the third party. There are different types of positive confirmations including: blank confirmations and invoice confirmations. A negative confirmation only…

discovered by the auditor, whom E.S.M. bribed to cover it up. When all was said and done, E.S.M. had defrauded its customers of over $300 million. Eventually the principals were convicted and sent to prison, as was the auditor. This…

that the National Aeronautics and Space Administration encountered leading up to the failed 2009 audit which was conducted by independent auditors, Ernest & Young. The auditors encountered two major discrepancies in NASA’s financial data when evaluating and calculating the value of their largest assets based on estimates. Essentially, there are numerous external and internal factors that affect the accuracy of the U.S. Space Agency’s financial data. Ernest & Young pointed out to major weakness…

different type of audits that public school districts undertake and describe each. (a) External Audits in general reviews the resources and operations of the school district. This type of audit is to ensure that there is compliance with the policies and provides a credible evaluation of the resources and operations. It is conducted by external certified auditors. There are 3 subcategories of audits that falls under external audits. The first being a financial compliance audit. A Comprehensive…

correctness and dependability of the company’s financial statements (p.181). Given the aforementioned explanation about an external auditor, it is apparent that Mattson Financial Services’ auditor did not properly cross checking the records to be in a position to form professional opinions. As the fact that no tests are executed, in place a few computations are done, then the external auditor offers a determination. The problem here is that the Mattson Financial Services may not know whether or…

internal control requirements of the Sarbanes – Oxley act have laid the responsibility of internal audits, effectiveness and efficiency of internal auditing controls squarely on the shoulders of senior management, audit committees they employ and external auditors. The compliance responsibility includes certification and consent forms to be filed by all involved parties. The Sarbanes – Oxley internal control requirements have been “widely considered to be the most difficult, time-consuming, and…

ensure reliability of the finances, these statements are prepared under the supervision of Ronel van Dijk, CA(SA) (Chief Financial Officer) and an internal audit will take place3. These internal auditors are appointed by the Audit Committee who are also responsible for ensuring that the internal auditors function independently and have the necessary authority and resources to discharge their duties3. For Wild Eagle Spur, the internal audit is conducted by someone from Spur’s head office in Cape…