External auditor

code of ethics that needed to be created and followed, created the Public Company Accounting Oversight Board (PCAOB) to inspect auditors, encouraged transparency with rewards, and aided the U.S. Securities and Exchange Commission (SEC) in ensuring that rules are followed or, if they are misused, the management will be held accountable and participation of external auditors and audit commitees will be allowed (Maleske, 2012). After this, business in the United States had a more established and…

risk. (1) Internal audit should first list all the key success factors which make objectives come true and risk factors which may prevent from success. Then, internal audit should list identified key success factors and risk factors (internal and external) which may prevent from success one by one, and analyze and judge to which extent risk factors affect objective realization from perspective of enterprise objective and organizational objective. Including: ① Listing enterprise strategy,…

the entire population of records. The premise of this methodology is based on the concept of “audit by exception” where deviations (e.g. control variances) are flagged as alerts and forwarded to the responsible parties (e.g. management, internal auditors, business owners) for investigation. Continuous auditing has evolved from an academic theory to a process applied in practice (Vasarhelyi et al., 2012). With the advent of technology, continuous auditing has gained popularity, a survey conducted…

(2010) defines corporate governance as ‘the system by which companies are directed and controlled’. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the…

because Arthur Andersen was Enron's auditor and did not disclose Enron's much false accounting information. Since then, the legislation of SOX was established to strengthen corporate responsibility and deter false information such as overstating revenues and understating expenses.…

CEO and co-founder of HealthSouth along with several close associates were at the heart of the crime . The accounting scandal was “overlooked” by Ernst and Young, the trusted auditors of the company, who were “unable” to catch the seven year fraud since 1984 . The currently public company was founded in 1984 and was established as a private company under the name “AmCare” . Within two years it changed its name to “HealthSouth”…

[7] Assume that a close family member came to you with information about a potential fraud at his or her employer. Prepare a summary of the advice you would offer as he or she considers taking the information forward. Before advising information about a potential fraud, it is important for the individual to have an understanding of the facts giving rise to concern. Because understanding of the facts, it helps to avoid prematurely filing a complaint that may be based of perception or emotion.…

A Synopsis of the Case Facts Tony Menendez was an auditor with Ernst & Young before he began working for Halliburton as their Director of Technical Accounting Research and Training in March 2005. He was told by his new boss, Mark McCollum, the Chief Accounting Officer, that he was needed to be the “Smokey the Bear” in the accounting team (Eisinger, 2015). They had just gotten over a two-year accounting probe from the SEC shortly before Menendez was hired and he was supposed to do an assessment…

Maqsood Khan was the internal audit officer in Bank-e-Mille on 2012. I was the internal audit manager at the same bank, and his was working under my supervision. Bank-e-Mille internal audit department had one chief internal auditor, three audit managers, 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…

reports and assurance by assurors and clients. Once this improvement has been achieved, there would require the existence of external shareholder demand in order to maintain the durability of pragmatic legitimacy. To further ensure long durability of sustainability assurance, assuror need to seek to develop moral legitimacy for practices which focused on the non-client external world. However, the outside world does not know enough about what assurance is and assurors have not told the outside…