ages Jumnma2 lu seeking to comply with the Sarbanes-Oxley Act of 2002. the tools
ID: 2396985 • Letter: A
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ages Jumnma2 lu seeking to comply with the Sarbanes-Oxley Act of 2002. the tools available 6. Audit types. What type of audit is indicated in each of the following situations? a. Checking internal controls over the sales/collection process. b. Determining how an employee embezzled cash. c. Establishing whether an audit conformed to all provisions of Sarbanes-Oxley d. Evaluating the accounting policy choices management made for conformity with GAAP e. Expressing an opinion on the fairness of a company's financial statements. f. Inputting sample transactions and verifying the output from Peachtree. g. Observing internal controls over inventory to improve process effectiveness h. Performing a comprehensive analysis of an Italian firm's accounting information system. i. Using test data to determine how QuickBooks proesses transactions. j. Validating the assumptions made for a major capital investment. udit Clarity Project. Fill in the blanks below based on the ideas in the Audit Clarity Project. . A cp aach standard concludes with-_. Cangh naragraph.Explanation / Answer
A) the sales and collection process always starts when goods purchased by customers and ends when the particular business receives payments from customer.so it indicated the audit of Financial statements.the auditor selects the randim transaction and check the related purchase order, invoice and customer statements.
B)it is indicated in financial statement,because auditor will be having all the responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materia misstatement,whether caused by error or fraud.here auditor needs check particulat transaction and finalise whether if their is any error or fraud.
C)surbanes oxley will mean big changes for both auditors and the companies they audit.auditors will inspect previous financial statements to confirm their accuracy.the audit indicates for financial statement.many of the audit failure that lead to the enactment of the sarbanes oxley act can be viewed as the result of auditorsblosing sight of those obligations to the public and defining their role as selling services rather than controling the gate through which companies can access the securities markeys.
D)indicated in financial statement as per financial standards. It means company must follow when they compile their financial statements.GAAP is combination of authoritative standards which is set by policy boards and the commonly accepted ways of recording accounting informayion.GAAP helps to improve the quality ofcommunication of financial information.qualified audit report.
E)audit report wil become a appraisal for small busines's financial status.
F)when designing audit procedures the auditor shall determine appropriate means of selecting items for testing.this is useful if you company needs to trace a transaction or if youre asked to produce this ss a part of an audit.
G)if company records its invenyory as an assets,and it undergors an anual wudit,then the auditors will be conducting an audit of company's invrntory.auditors will examine the procedure for receiving shipments on time.auditors wants to know the procedures thst company use to count the inventory.they wil trace the valuation compiled from the physical inventory.they wil mention it in GENERSL ledger.
H)The auditors have respect both laws and corporate laws attend to the princiles of correct management and verify the acceptableness of administrative.financial auditors willasses the correctness of both bookkeeping entries and documents concerning the reporting of management operations.
I)each and every change made to a transaction in quickbook is logged automaticaly.and cannot be disabled.indicated in bank reconsiliation statement.
J)indicate in financial statement analysis. For The complete analysis of quality it is neccessary to evaluate the consistancy between income statement and balancesheet.
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