Internal audit

the Role of the Auditor General in Canada. The Auditor General of Canada is Michael Ferguson and serves Parliament. The Auditor General and the Office of the Auditor General (OAG) perform legislative audits, which include: financial audits, performance audits and special examinations. The OAG audits the federal government, crown corporations and territorial governments. Within the OAG is the Commissioner of Environmental and Sustainable Development. The Commissioner is Julie Gelfand and she is…

confirmation was used where they relied on the vendors’ sales people. The audit team investigating the company did not rely on the accounting department of the American Food Suppliers’. However, employees of American Food Suppliers had colluded with some of it, suppliers. On further investigation, the auditors discovered…

as auditing standard setters and regulators of the audits of corporations by public accounting firms. Section 102 mandates that the accounting firms auditing public companies register with the PCAOB. Section103 require audit firms to describe the scope of testing of issuers’ internal control structure. The authors further enlighten in Section 104 that the PCAOB will conduct inspections— either annually or every three years (for firms that audit fewer than 100 issuers) of registered public…

how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC does have substantial influence on the audit of the company, by the auditing firm Keller CPAs. The influence can be observed in the audit standards that have to be followed in establishing the independence of auditors involved in the audit of the Company. Independence is one of the six ethical principles of the AICPA Code of Professional Conduct. Audit team members are required to be…

sections that influence internal control the most which are Sections 302 and 404. Section 302, corporate responsibility for financial reports, is more of a realistic application of the internal controls. For this section, management of a company must establish and maintain internal controls, design internal controls to guarantee that material information which relates to the issue and its subsidiaries is communicated to the officers with the entities; evaluate the internal controls’ efficiency…

The Sarbanes-Oxley Act has a goal “To protect investors by improving the accuracy and reliability of corporate disclosures…” and was passed with the intent of ending self-regulation and increasing independence of public accounting firms, increasing internal controls, and management accountability and enhancing transparency in financial reporting and information.…

top management. Having obtained the full information regarding the agreement, Hellen advices William Kaye to make appropriate adjustments to the entry. This to me shows a high level of professionalism in audit risk management and further portrays Touche Ross as a competent and non compromised audit firm. KMG Main Hurdman (KMG) addresses the accounting treatment regarding payment by United Airlines and they too refused the explanation given to them by Rognlien and Lawrence. The explanation was…

Tyco) in the early 2000’s. These scandals forced capital providers and the general public to question the judgement of public accounting firms as well as at the overall reliability of the financial reporting and audit process. The requirements included in SOX were designed to improve audit quality, increase the reliability of financial reporting, bolster corporate governance, and re-establish public and investor confidence in the financial reporting process. Some of the most impactful aspects of…

registration, inspection, enforcement and setting standards. The PCAOB has the authority to register accounting firms which conduct audit reports for issuers, brokers, and dealers. Even accounting firms not located in the United States but still provide audit services for any U.S-based issuer, broker, or dealer are also subject to rules set by the PCAOB. In turn, quality control, audit, and ethical practices are imposed among the registered…

and issue their audit reports. It is created to investigate and question accounting practices and make sure they are following laws and regulations. Anyone who goes against those laws and regulations will get find and disciplinary actions would be taken against that…