External auditor

Nefret explained it was due to the return of overstocked goods from several Nefret stores. Later, the auditor noticed that a sentence as “Do not post until merchandise received” on the credit memos from Zaki had been obliterated by a felt-tip marker, which meant that Nefret could not reduce its payable until the returned goods were received by Zaki. The auditor thereafter called Omar Zaki, the treasurer of Zaki, Inc.and was informed that the $130,000 in goods had not been returned…

comply with the idea of independence to separate with the client as different parties in work, interest, and human resources. Enron worked with Arthur Andersen closely in many different types of accounting services including internal auditing, external auditing, and consulting. With all the time being spent in Enron, Arthur Andersen was not able to differentiate the purpose of their work. Enron…

decision had positive impact on the banks’ corporate governance in many terms. It helped improving the internal audit work especially in the Anti Money Laundering function. The new decision also made the audit committee able to evaluate the external auditors’ independence. However, these requirements are still lacking important protection codes (Salloum, 2014). According to Bakkour & Chehaita (2011), 14% of the companies operating in Lebanon have audit committees, with only 18% of these…

researchers to measure the audit quality, however, there is no agreement on the best measure of audit quality. Auditors gives assurance of their services as an economic goods Simunic (1980). Simunic argued that, audit quality is determined by the clienteles and auditor availability to give audit services which is determine by the incentives and competences of the client and the auditor. As discussed before in the agency relationship, audit quality demand by the clienteles arises due to conflict…

Evaluating the cross-cultural and cross-ethnicity factors that influence auditor’s professional decision-making 2. Establish the way in which the identified cross-cultural and cross-ethnicity factors influence the professional decision making of the auditor and ultimately the quality of audit 3. Offer recommendation to the scholars and auditing practitioners on making quality and ethical audit decision to preserve the quality of audit 1.3.3 Research Questions To achieve the set objectives,…

as measures. In practice, these measures and the related processes that yield these measures are usually reviewed by the internal auditors as part of performance audit (Al Athmay, 2008; A. Chambers, 2006; Raaum & Morgan, 2001). Since overall organizational performance is said to rely on the sense of belonging to the organization, the perception that internal auditors have given value add services would be perceived through the acceptance of other departments, as process owners, of their audit…

evaluating and assessing internal controls in each department because everyone is part of the company and they involved in internal control. Evaluating risks by internal auditors which mean they are identifying key activities, some relevant risk factors changing some trends, business/economic and how actually as internal auditors assess risks. Finally, analyzing operations, confirm the effectiveness, confirm information and compliance…

PCAOB Rules and Regulations After the establishment of the SOX, SOX then created the PCAOB to directly observe an auditors’ work (Elder, Zhang, Zhou, & Zhou, 2009, p. 544). The PCAOB implemented several auditing standards intended at guaranteeing adequate audits in affiliation to SOX 302 and SOX 404 (Mundy & Owen, 2013, p. 185). Mundy and Owen point out that the PCAOB auditing standards assist to recognize the procedures and measures, whether they are manual or automated, that should be…

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…

What is The Sarbanes-Oxley Act (SOX)? It may be one of the most pivotal financial acts to have come about in recent history. It is a law that was enacted in 2002 and signed by President George W. Bush (U.S Securities and Exchange Commission 2013). The Securities and Exchange Commission (SEC) enforce this law to regulate changes in financial practices and corporate governance. The main purpose of SOX is to protect shareholders and the public from accounting fraud and errors. Fundamentally,…