BSBA MA Level 3 - Case Analyses. Present your answers (briefly) on the following cases as comment under this post.
Chapter 1 page 34 Case No. 1
Chapter 2 page 56 Case No. 3
Chapter 3 page 86 Case No. 5
Thank you.. God bless.
Chapter 1 page 34 Case No. 1
Chapter 2 page 56 Case No. 3
Chapter 3 page 86 Case No. 5
Thank you.. God bless.
Denmark Buenaventura, BSBA MA3-A
ReplyDeleteCase #1
a) The CPAs should provide an information regarding the internal control of the company, CPAs should gather and evaluate the activities of the internal control of the companies before the CPAs conduct an assurance engagement they must know about the environment of the business.
Denmark Buenaventura BSBA MA-3A
ReplyDeleteb) The broad activities that would be involved is performing an examination internal control is the internal audit because internal audit involves management auditing that is related to the effectiveness of the management, operational audit it involves the capacity and efficiency of the operation and financial auditing is the examination of financial performance of the company. This process is the examination of the effectiveness of internal control.
Denmark Buenaventura, BSBA MA-3A
ReplyDeleteCase #3
a) The objectives of an independent audit is to enable to auditor to express an opinion whether the financial statement are prepared in all material respect in accordance with an identified financial reporting or acceptable financial reporting standards.
b) Five objectives ways of independent auditor:
- Responsibility for the financial statement is to form and express an opinion on this financial statement based on the audit assurance provided by the audit is designed to provide only reasonable assurance that the financial statement taken as a whole are free from material misstatement needed for a independent financial statement audit in last theoretical framework of auditing.
Den Mark Buenaventura Bsba Ma3-a case no.5 a.) The auditor should conduct the audit without bias impartial attitude must be maintained by the auditor when evaluating evidence and formulating his conclusion. b.) The no.5 situation because the complex transaction can affect the objectivity of the financial statement and accounting department is also responsible for recording the complex transaction it is so materially impaired because every mistake that the entries recorded it will affect the company financial perfomance.
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ReplyDeleteAira Liza A. Tacugue BSBA MA 3A
ReplyDeleteCase 3
a.))an audit of financial statements is to be enable the auditor to express an opinion whether the financial statements are prepaid,in all materials respects in accordance w/ an identified financial reporting standards.An independent auditor is needed to assist them in verifying of the financial information.
b.)Internal Audit may benifit to:
1. nternal audit effectiveness reviews are firmly on the management and audit committee agenda.
2. Good governance and international standards require a rigorous review.
3. brings a different and valuable insight – a strategic perspective as well as a process review.
4. helps take a more strategic view – will look at the audit processes and structures but focus on how far internal audit is achieving what’s needed by the business and the Board.
5. will give a view on how well it is equipped to respond to the future demands on the business.
Aira Liza A. Tacugue BSBA MA 3A
ReplyDeleteCase 1
a.)internal control can only provide reasonable assurance that the entity's objectives will be achieved .This is because there are inherent limitations that may affect the internal control's effectiveness.the entity's internal control system directly affects of the financial statements.The stronger the internal control is the more assurance it provides about reliability of the accounting data &financial statements.
b.) the broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are:
1. A Focus on the Family Unit
2. A Focus on Work Experience
3. A Focus on Service Integration
4. A Focus on Individual Strengths
5. A Focus on Tiered Case Planning
Aira Liza A. Tacugue BSBA MA 3A
ReplyDeleteCase 5
a.)Freedom from subjective valuation and bias in making an accounting decision. Objectivity applies to a measurement having supporting evidence. Verifiability exists in that two accountants working independently of each other will come up with similar answers.An example of objectivity is recognizing revenue at time of sale because it emanates from an independent external transaction. so with relation to Internal auditing; is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
b.)It has been materially impaired because the internal auditors has been working too many areas in which they have failed to report it to audit committee of the board of directors and they have ask the accounting department to do the complex transactions in which the accounting department are not capable of doing so.
Aira Liza A. Tacugue BSBA MA 3A
ReplyDeleteCase 5
c.)
1, the reporting relationship result in the problem of objectivity because the internal Audit should always remain independent and objective to all audit and nonaudit activities. they should rely to them selves and not submit some reports to other brunch. they can only submit it to the vice president.
2. my answers in part B may have changed for any of the fivesituations if the manager of internal audit reported to the audit committee of the board of directors because the audit committee may have review and seen their error and that they may find a solution to help the manager of internal audit to make their work proper and reliable. they may also find how to make things clear for the internal audit.
Aira Liza A. Tacugue BSBA MA 3A
ReplyDeleteCase 5
d.) Memo to the President
From : the Manager
To avoid misstatements of the information it should be reported to the Vice President or to the Audit Committee to make their work proper & reliable & also to found out on how to make things clear for the Internal Audit.
CHAPTER 1 CASE 1
ReplyDeleteA.)providing assurance about internal control of a certain company would help the practitioner to avoid information risk and so that they could have a fairly presented financial statement. Effective internal control would also help to avoid financial statement free from misstatement. If such company have effective internal control management the practitioner could give a reliable information that can be communicated to interested users.
b.) To examine the effectiveness of internal control, it could performed by a practitioner in the way of checking if the management perform it's responsibilities and obligation and how they perform or operate it's operation. Board of directors hires a CPA to audit, review and evaluate the financial statement and other operation of the company to know how the company going and its operation according to General Standards implemented.
CHAPTER 2 CASE 3
a.) The objective of an independent audit is to avoid reporting bias information to make reasonable decisions out of the audit report perform by an independent auditor. The other one is to enable the auditor express an opinion wether the financial statement are prepared in accordance with the general standards and financial reporting framework.
b.) Independent audit may be beneficial to Lyn Cruz so that she could make a good decisions if her hardware needs to be improved or not. It is always for her to know if her financial statement is effective and reliable. It may be beneficial for her to have a fairly presented financial statement. Having audited by an independent auditor helps establish the credibility of her financial statements.
CHAPTER 3 CASE 5
a.) Objectivity in relation to audit is the goals or the things that they should be done to have an effective internal control. According to the selection, lack objectivity and the objectivity they are referring to are those acts or standards they should implemented to meet a high internal control management. These are the things they should consider most to improve the operation of the management.
b.) The objectivity of lee company's internal audit department has not been materially impaired. Each situation are considered advantage to the management if performed efficiently. The one thing that is probably ineffective is the last situation because the employees are not adequately trained to handle the transactions therefore the entries or transactions that are being recorded are unreliable and errors might occur that could highly affect the information stated in the financial statement.
c.) 1)No, because the objectivity of internal control is the responsibility of the management to work on it. Managers only audit the company's financial statement.
Chapter 1 Case 1
ReplyDeleteA. Providing assurance about internal control provides assurance about the reliability of other information provided by the company these serves that their client trusted so much if and only if they have effective internal control. Having effective control of the company the management control their personnel very well. It signify that many investor trusted the company and rely on your information because they have an effective control.
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ReplyDeleteCASE 1
ReplyDeleteA.To provide such assurance,it it begun to provide services not just on accounting information but on many other types of information that people need in order to make decisions.The auditor's findings should be based on the policies and policies and procedures management uses to achieve it's objective.
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ReplyDeleteMarifi Reyes BSBA MAIII-B
ReplyDeleteCase No. 1
A.) CPAs are getting significant requests to provide assurance effectiveness of internal control because it involves measuring the time it takes to find failures and the time taken to correct the damage. Internal control is implemented to prevent fraud and comply with laws and regulations, and then it is used systematically to improve businesses, particularly in regard to effectiveness and efficiency. In the part of CPAs if the internal control of the company is strongly and well performed by the employee and management, the audit procedures will decrease. To be more effective the people may understand how risky if the internal control is not strictly followed and monitoring of the time it takes to find and resolve incidents. The two factors together enable cost effective change to be made to the internal control in the light of the actual risks facing the organization.
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ReplyDeleteCarla Salomes MA3-B
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ReplyDeletekasulod na ko hehehe
ReplyDeleteCase 1: a) Providing assurance about internal control provides assurance about the reliability of other information provided by the company. It states that the assurance is very important in conducting a report. The report must be reliable and relevant in order to have a sufficient report. Assurance also helps in expressing a conclusion as a practitioner.It also helps evaluates or measure a subject matter.
ReplyDeleteCase 3:
a)The objectives of an independent audit is to enable the auditor to express an opinion whether the financial statement are prepared in all materials respects , in accordance with an identified financial reporting framework. The phrase used to express the auditors opinion is present fairly . In all material respect. A similar objective applies to the audit of financial or other information prepared in accordance with appropriate criteria.
hope ma save na....:)
ReplyDeletehehehe...
ReplyDeleteCase no.1
ReplyDeleteInternal control is affected by those charged with governance, management, and other personnel. internal control is accomplished by people at every level of organization, including the management those charged with governance and entity's staff personnel. it is the responsibility of the management to established a control environment and maintain policies and procedures to assist in achieving the entity's objectives. those charged with governance, on the other hand ensure the integrity of accounting and financial reporting system through oversight of management. Staff personnel should also perform their respective functions in order to accomplish the objectives of the entity.
:)
ReplyDeleteChapter 2 Case 3
ReplyDeleteA. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework.
B. Independent audit is beneficial to Lynn Cruz for the following reasons:
o To detect possible recording error;
o To provide reliance by intended users of financial statements;
o To help detect risks and provide recommendations to management to reduce the risks;
o To help improve the internal control of the business; and
o For reportorial compliance.
Case 3
ReplyDeleteB. Five ways in which an independent audit may be beneficial
*competence
*expertise
*responsible to her work
*qualified skills and knowledge regarding to auditing
*most importantly is being an independent
Chapter 1 Case 1
ReplyDeleteA.Assurance about effective internal control provides assurance about the reliability of other information provided by the Company. Though most companies have its own internal auditor(s), some would request an independent CPAs or firm to provide reasonable assurance on the operating effectiveness of internal control in compliance with applicable laws and regulation. It follows that sound and effective internal control provides lesser probability of risks.
B.Examination of the effectiveness of internal control involves broad engagement activities. These include, but not limited to the following:
o Conducting an interview on the detailed flow of activities with the assigned personnel;
o Distribution of set of questionnaires to personnel;
o Observation of actual procedures performed;
o Performing walk
through procedures; and
o Test examination into the system.
Chapter 1 Case# 1
ReplyDeleteA.It refers to the Auditor satisfaction to the reliability of an assertion being made by one party for use by another party; the Auditor assesses the evidence collected as a result of procedures conducted and expresses a conclusion. The degree of satisfaction achieved and therefore, the level of assurance which may be provided is determined by the procedures performed and their results.
B.To examine the effectiveness of internal control is intended to enhance the credibility of information about a subject matter by evaluating whether the subject matter conforms in all material respects with suitable criteria, thereby improving the likelihood that the information will meet the needs of intended users.
Kristine Mae L. Garrucho BSBA MA 3A
ReplyDeleteCase # 1
a. To provide such assurance , the auditor assesses the evidence collected as a result of procedures conducted and expresses a conclusion. The degree of satisfaction achieved by the procedures performed and their results.
b. As a comprising the control environment and control procedures. It includes all the policies and procedures adopted by the management of an entity to assist in their objective in achieving, as far as practicable.
Case # 3
ReplyDeletea. A key section of the Code deals with independence in an audit context. Thus, a CPA’s objectivity must be beyond question if he is to report as audit. That objectivity can only be assured if the CPA is seen to be independent the auditor to express an opinion whether the financial statements are prepared, in all material respects in accordance with an identified financial reporting framework.
b. The five ways in which an independent audit may be beneficial to Lyn Cruz this are the following: In independent audit makes the financial statements not credible and reliable. Management is the beneficiary of contraction suggestion is improving business operations. Commission and fraud by management and employee is minimized. Audited financial statements provide a more credible basis for the preparation of tax returns. Better and sound management decisions may be made in financial records and reports are accurately maintained and provided.
Case # 5
ReplyDeletea. An appraisal activity established by management for the review of accounting and internal control system as a service to the entity. It review, monitors and makes recommendations for the improvement of systems.
b. Each situation are considered advantage to the management if performed efficiently. The financial statement and accounting department is also responsible for recording the complex transaction.
Chapter 3 Case 5
ReplyDeleteC. The reporting relationship of Internal Audit Manager to the Corporate Controller impairs objectivity of internal audit department. Internal Audit Manager should report directly to the audit committee of the Board of Directors.
Even though if Audit Manager reports directly to audit committee, it does not necessarily change my answer to the above situations.
D.Memo to the President
We reviewed the organizational structure of the Company and found out that Internal Audit Department has a reporting relationship with the Accounting Department. In order to avoid the risk of compromising the objectivity of your Internal Audit Department, we suggest that reporting be directed to the Vice President/Audit Committee.
For your information and immediate action.
November 17, 2011 10:22 PM
,.,.
ReplyDeleteChapter 3 Case 5
ReplyDeleteA.Objectivity is a principle not to compromise professional judgment because of bias, conflict of interest or the undue influence of others. Internal auditor should not impair its independence with other personnel in the organization.
Chapter 3 Case 5
ReplyDeleteB.The objectivity of Le Company’s internal audit department maybe impaired depending on the following situations:
o Involvement of internal auditor in preparation of policy of internal control does not necessarily impair its objectivity. Internal auditor will be helpful in order to convey actual experience in the conduct of audit, thus useful in developing a written policy.
o Preparation of bank statements by an internal auditor signifies incompatibility if duties. This should be done by an accounting staff to be reviewed by the Corporate Controller.
o Objectivity is at risk if an internal auditor is involved in budget preparation. Budget be prepared by the Corporate Controller and approved by the Board/Executive Committee. However, internal auditor may assist in performing variance analysis every month so that any misstatements will be detected.
o Involvement of internal auditor in the design, installation and initial operation of new computer system is very useful, hence does not impair its objectivity.
o Handling of accounting entries be initiated by the accounting personnel. The function of internal auditor should only check the correctness of entries.
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ReplyDeleteChapter 2 Case # 3
ReplyDeleteA. The objective on an Independent Audit is to enable the auditor to express an opinion whether the Financial Statement are prepared in all material respects, in accordance with an applicable financial reporting framework and audit of Financial Statement is an assurance agreement. Independent Audit is to provide for verification of records, processes or functions in a sufficiently independent manner from the institution or subject being audited in order to add its value and improve its operations.
Chapter 2 Case # 3
ReplyDeleteB. The five ways that independent audit may be beneficial:
1. Auditors who perform Financial Statement audits are independent of management and financial statement users.
2. Auditors base their opinions on a sample of the financial data rather than on every item that makes up the Financial Statement.
3. Auditors obtain reasonable assurance about whether the Financial Statement is free of material misstatement. Auditors are never absolutely certain that Financial Statement is accurate.
4. Auditors express an opinion on the Financial Statement as a whole and not on the individual items with in Financial Statement.
5. Auditors issue their report to a variety of Financial Statement users.
,.,.,.
ReplyDeleteChapter 3
ReplyDeleteCase 5
D. Memo to the President
From: the Manager
To avoid misstatements of the information on the FS it should be reported to the Vice President or to the Audit Committee to make their work proper and also to found out on how to make things clear for the Internal Audit.
:D
ReplyDeleteMacy Buyco MA 3B
ReplyDeleteCase 1
1.Providing assurance about internal control provides assurance and relevant information to the company. Thus, this significant as to oppose auditing expertise and avoid information risk may occur in the company.
2.Assurance engagement performed by a professional accountant is intended to enhance credibility of information in according with identified Financial Reporting Frameworks. Assertion about the effectiveness of internal control for evaluating and practitioner gather sufficient appropriate evidence to avoid reasonable assurance for expressing conclusion in the reports.
Macy Buyco MA 3B
ReplyDeleteCase 3
1.Objective of an audit of financial statement is to enable the auditor to express an opinion whether the financial statement are fairly presented in all material aspect.
2.Five ways in which an independent audit may be beneficial to Lyn Cruz
-It’s to enhance the credibility of the financial statement of the company by providing high but not absolute level of assurance.
-Potential bias & motives of information provider.
-Responsibility for financial statement to express fairy presented reports.
-its help improve internal control of the company and give voluminous data .
-it’s improved managerial performance and avoid audit risk.
Case 5
ReplyDeleteA.Objective of internal auditing is to assist all member of management in the effective discharge of their responsibilities, by furnishing them with analysis, appraisals, recommendation and pertinent comments concerning the activities rendered.
B.The objectivity of Lee company in internal audit should not develop and install procedure in any other activity which he would normally review could reasonable be constructed to compromise his independence and must be recommended by board of directors and implemented by management. Internal control only defers in correction of reports.
D.Memo to the President
We gather all information and found out that there is misstatement in the auditing report and the accounting department .We suggest to avoid action on this matter should directly reported to vice presented/audit committee .
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ReplyDeletechapter 1 case 1
a} providing assurance about internal control also signifies assurance of the reliability of the information provided by the company, for when we say internal control we refer to the procedures and policies implemented by the management inside an organization. internal control is mostly considered as the foundation and secret to the success of every organization if the management will formulate an internal control and implemented it strictly for an effective output everything will then follows.
b} the broad engagement activities that would be involved in performing an examination of the effectiveness of internal control is that auditors and CPA's should have a consistent policies and procedures . there obligation must be perform well. the auditor must be independent and competent in checking all the records. they should observed properly if management following the correct standard of policies and procedures.
RECHIE B. PABELONA
ReplyDeleteCHAPTER 1: Case #1
A. Internal control activities are designed to provide reasonable assurance that particular objectives are achieved, or related progress understood. The specific target used to determine whether a control is operating effectively is called the control objective. Control objectives fall under several detailed categories; in financial auditing, they relate to particular financial statement assertions, but broader frameworks are helpful to also capture operational and compliance aspects.
B. If the internal control system is implemented only to prevent fraud and comply with laws and regulations, then an important opportunity is missed. The same internal controls can also be used to systematically improve businesses, particularly in regard to effectiveness and efficiency.
CHAPTER 2: Case #3
A. An external auditor is an audit professional who performs an audit in accordance with specific laws or rules on the financial statements of a company, government entity, other legal entity or organization, and who is independent of the entity being audited. Users of these entities' financial information, such as investors, government agencies, and the general public, rely on the external auditor to present an unbiased and independent audit report. The manner of appointment, the qualifications and the format of reporting by an external auditor is defined by statute which varies according to jurisdiction of different countries. External auditors must be a member of one of the recognized professional accountancy bodies.
B. 1. To assure the accuracy of the FS
2. To provide reasonable assurance as the fairness of the FS
3. To comply with the governmental requirements
4. To take the responsibility for the FS
5. To enhance the quality of Financial Reporting
CHAPTER 3: Case #5
A. Objective of internal auditing is to assist all member of management in the effective discharge of their responsibilities, by furnishing them with analysis, appraisals, and recommendation and Pertinent comments concerning the activities rendered.
B. The objectivity of Lee company in internal audit should not develop and install procedure in any other activity which he would normally review could reasonable be constructed to compromise his independence and must be recommended by board of directors and implemented by management. Internal control only defers in correction of reports.
C. (1) No, as long as the auditor is doing his or her duties in accordance with the criteria.
(2) No, because that is one of the duty of the manager to submit report to the Scommittee of the Board of Directors.
D. Memo to the President
We gather all information and found out that there is misstatement in the auditing report and the accounting department .We suggest to avoid action on this matter should directly reported to vice presented/audit committee .
rich gn ano mo pag psulod??
ReplyDeletepra anu d ku ka post sa main acct ko !
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ReplyDeleteChapter 2 Case 3
ReplyDeletea.)The objective of an independent audit is the expression of an opinion about the fairness of the financial statements, and to state wether financial statements are prepared in conformity with Generally Accepted Accounting Principles. Independent audit aims also to improve business by rendering constructive suggestions or recommendations to management just like suggestions to tighten internal control and efficient operations.
b.)5 ways an independent audit maybe beneficial to the client -Lyn Cruz
1.Independent Audit makes the financial statement more credible and reliable.
2.Management is the beneficiary of constructive suggetions in improving business operations.
3. Commission on fraud by management and employee is minimized.
4.Audited financial statement provide more credible basis for the preparation of tax returns.
5.Better and sound management decisions maybe made if financial records are adequately maintained and provided.
Chapter 1
ReplyDeletecase 1
a.)The assurance about the internal control provides assurance about the reliability of other information provided by the company is that when the financial statement are examined or audited we can say now that is reliable , because of the reasonable assurance that may provide by the auditor an his opinion .And the effectiveness of internal control is important to the reliability of the other information provided by the company because it is intended to lend credibility to the financial statement being audited .The reliability being process to generating information to contribute to an greater demand for assurance.
b.) The broad engagement activities that would be involved in performing an examination of effectiveness of internal control is the criteria and don't make any mistake to record a transaction .It is important getting significant concern to the financial statement to be reported to the intended users.
MA 3-B
ReplyDeleteCHAPTER 1
CASE 1
A. If an internal control of an entity is effective then, there is a reasonable assurance that the information provided by the company is objectively obtained and reliable because it underwent proper procedures in accordance with the standards and principles provided and it has undergone series of tests as well as it should also be provided with evidences, as long as there is a strong internal control in the company there is as well minimum risks to expect.
B. First, a practitioner should plan his activities & obtain preliminary understanding about the internal control of the company, then, he should perform substantive tests to prove that the internal control of the company is effective then gather evidences and make a report regarding on his findings.
CHAPTER 2
CASE 3
A. The objective of an independent audit is to express an opinion that the financial statements performed by the entity is fairly presented and has complied with the different standards and principles.
B. 5 benefits of an internal audit are:
• It makes the financial statement more credible and reliable.
• The management is the beneficiary of constructive suggestions in improving bus. operations.
• Commission of fraud by the management & employee is minimized.
• Audited financial statements provide more credible for the preparation of tax returns.
• better sound management decisions may be made is financial records & reports are accurately maintained
CHAPTER 3
CASE 5
A. “Objectivity”, as it relates to internal control function is the procedure or evidences that should be maintained or gathered in conducting a report to assure that the financial statements are fairly presented.
B.
1. No, because auditors are concerned with all kinds of operational audits.
2. Yes, because in order for internal control to be effective as well as the credibility of the statements, due professional care is needed. In this case there is no due care done.
3. Yes, the auditor lacks independence & the reports coming from the controller’s staff should be supported by evidences.
4. Yes, they are not using systematic approaches, that’s why it results to weak internal control and more procedures are needed.
5. Yes, because they are not following the proper standards or principles given to them and because of it there is no reasonable assurance that the financial statements or reports are fairy presented.
C.
1. Yes, to be able to express the auditor’s opinion and make his reports free from any material misstatements, he should practice independence as well as those procedures given in accordance with the standards.
2. Yes, because if it was reported they could have formulated an opinion on what could be the possible solution for the probable cause of the ineffectiveness of the internal control & the committee could have done something to monitor & review them again to correct errors.
D. To the President;
With regards to the auditing procedures done, as well as the reports made, I would like to plead, to please allow your manager to report to the vice president of your company, due to the reason that your corporate controller has not made any further actions about certain matters including with the internal control of your company.
I am hoping for your positive response.
Thank you and Good day!
MA 3-B
chapter 2
ReplyDeletecase 3
a.)The objective of an independent audit is an external accounting function conduct to public accounting firm or private certified accountant audits are usually an objective review of an company's financial information.Two types of audits may be used in the business environment:Internal and External.
Internal audits are usually conducted company employees for management review purpose.External audits are usually an independent audit conducted by individuals outside the business to provide an objective opinion regarding the company financial accounting process
b.)The independent audit may be beneficial to miss Lyn Cruz in so many ways.first it can help in made economic discussion in a such way that the audited financial statement are reliable because it is examined.The independent audit can be beneficial also for him in attracting prospective investor because audited financial statement can gave reasonable assurance to the static of audited company.It can help him also expanding his buyers and also they can gain more income
chapter 3
ReplyDeletecase
a.)The objectivity as it relates to the internal audit function is an independent objective assurance and consulting activity designed to add value and improve an organization operation/It helps an organization to accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management control and governance process.
b.)The internal audits has made payment w/out recording in the book of the company and that certain transpired because a person the cooperate controlled concern he believes the duty assign to the internal auditors is liable and that internal auditors not involved is an certain transaction being done.because the internal auditors was one organize too new computers and a parts of computers as for as know it is the work of manager.
c.)The internal auditor was liable in choice a well trained employees acting department.
c1.) Yes,Its report relationship result in a posting objectivity because the internal audit to this job independent to review the financial statement.
c2.)No,because in the five situation it is not good work of the internal auditors.
d.)The manager of internal audit report to the vice president because they prove discovering anomalies
CASE 1:
ReplyDeleteA.
Effective internal control is very important inside the company in order for the auditor to lessen its procedure in examining the Financial Statement of the firm. If the practitioner sees that the internal control of the firm is very effective the practitioner can conclude to himself that the firm is providing assurance that the environment inside is applying what had been the command from the higher authority of the company. There's an effective control inside the company's environment, it could be said that the information inside the company is very reliable in doing verification of the Financial Statement. Then, as the auditor’s procedure will be lessen or reduce, it can be said that the process of evaluating and verification of Financial Statement will not take a lot of time in scrutinizing the Financial Statement.
B.
There would be an internal audit to assess the effectiveness of the policy that had been levy by the board. It could also determine the effectiveness of how the management manages the company and to determine if there were fraudulent operations inside the firm’s environment. It could be the basis of the board to change some policy that are not relevant and modify those policies which requires enhancement on it.
Chapter 1
ReplyDeleteCase 1:
a.)Internal control are policies and procedures, promulgated by board of directors, implemented by management. The practitioner can provide assurance about the reliability of information since these internal controls are designed to provide reasonable assurance that the entity, achieves objective abrupt effectiveness and efficiency of operations, the reliability of financial statement on report which are in compliance with applicable law and regulation.
b.)Acquisition of new machinery, in this activity you must have an approvals to the board of directors, management and other personnel within the particular company. The equipment should undergo, test and examine. The practitioner should have reliable source and must obtain a sufficient understanding of the entity and its environment assess the risk of material misstatement of the financial statement due to error or fraud.
CASE 3:
ReplyDeleteA.
The purpose of the independent audit process is to have a third party examine an organization's financial statements. The process has to include safeguards that make sure that the auditor, or the auditing firm, is truly independent. The independent audit process also has to specify whether the auditor examined enough documents to make an informed statement about the company's financial position.
B.
Ways in which an independent audit may be beneficial to Lyn Cruz:
-To correct those weaknesses in the accounting system that Lyn’s applying to her Financial Statement and improve Lyn’s Financial Report.
-The independent auditor may be able to assist Lyn in improving physical protection over assets.
- An independent audit may facilitate Lyn’s efforts in raising new capital.
-The audit may identify a need for improved budgeting and performance reporting.
-To serve as an error prevention device by making employees aware of audit coverage.
Chapter 2
ReplyDeleteCase 3:
a.) Audit is very important in the company’s financial statement and should be examined by the CPA’S so it can be meet by intended objective to enable expresses to an opinion weather the financial statement are prepared in all material aspects. Independence and credibility to the attest function but because independence is an attitude of state of mind. Independent audit is typically performed by a CPA external to the organization and is there by presenting an unbiased opinion void of any conflicts of interest. The audit function is to provide verification of records in a sufficiently independent manner from the subject matter being audited in order to improve its operation. The main objective of independent audit is to express an opinion with regards to the financial statement.
b.)1. Independent audit makes the financial statement move credible and reliable.
2. Lyn Cruz is the beneficiary of constructive suggestions in improving business operation.
3. Commission of fraud by management and employee is minimize.
4. Audited financial statement provide a more credible basis for the preparation of tax returns.
5. better and sound management decision may be made financial records and accurately maintained and provided.
Chapter 3
ReplyDeleteCase 5
a.)Objectivity is a state of mind that imposes the obligation to be intellectually, honest and free from conflicts of interest. In relates objectivity in internal auditing is to consist all members of management in the effective discharge of their responsibilities by furnishing them with analysis, appraisals recommendation and pertinent comments concerning the activity received.
Chapter 3 case 5
ReplyDeletea.)Objectivity as it relates to internal audit function means that the policies and procedures had implemented to met the objective of the audit.Objectivity is achieved by applying the auditor's intellectual honesty and he should be free from conflict of interest.
b.)The objectivity of internal audit department is considered materially impaired in the five situation because for me because internal auditor should be independent and free from personal interest.They should not involve their selves in those transactions in which they are also the one performing review.
CASE 5:
ReplyDeleteA.
Objectivity means that the internal auditor must have and maintain an unbiased and independent viewpoint in the performance of audit tests, evaluation of the results, and issuance of the audit findings. Objectivity would not exist if the internal auditor were to audit his or her own work.
B.
1.Objectivity is not impaired. Development of written policies and procedures to guide Lee’s staff is a responsibility of the internal audit staff. The internal auditors are responsible for the independent evaluation and verification of a proper system of internal control.
2.Objectivity is impaired. The preparation of bank reconciliations is a control over cash. To maintain objectivity, the auditor should not perform assignments that are included as part of the independent evaluation and verification of proper internal control. Separation of duties should be maintained.
3.Objectivity is not impaired in the review of the budget for reasonableness if the internal auditor has no responsibility for establishing or implementing the budget. However, objectivity is impaired when the internal auditor makes managerial decisions concerning performance in the review of variances.
4.Objectivity is impaired in that the internal auditor will be called on to evaluate the design and implementation of the system in which he or she played a significant role. Testing of the internal controls would not impair objectivity, because this activity is necessary for determining the adequacy of accounting and administrative controls.
5.Objectivity is impaired. The internal auditors should not be involved in the recording process.
C.
1.Yes, the reporting relationship results in an objectivity problem. The controller is responsible for the accounting system and related transactions. The internal audit staff is responsible for independent and objective review and examination of the accounting system and related transactions. Independence and objectivity may not exist because the internal audit staff is responsible for reviewing the work of the corporate controller, the person to whom the staff reports.
2.No, the responses for b would not be affected by the internal audit staff’s reporting to an audit committee rather than the controller. To maintain objectivity, the internal audit staff should refrain from performing non audit functions, such as management decision making, design and installation of systems, and record-keeping. Ideally, to avoid being called on to evaluate its own performance, the internal audit staff should perform only audit functions. This is true without regard to organizational reporting relationships.
D.
Dear President,
We recommend that the manager of internal audit report to the vice president rather than the controller. A large part of the work of the internal auditors do involves an examination of the accounting system and related transactions which are functions for which the controller is directly responsible. If the manager of internal audit reports to the controller, the controller may prevent the internal auditors from looking at issues that need to be examined. Further, the internal audit manager may feel compelled to avoid being completely candid about matters under the supervision of the controller.
We will be pleased to discuss these and any other issues with you at your convenience.
Respectfully yours,
BSBA-MA3A
CHPTER 3 CASE 5
ReplyDeleteC.)Yes,this could create conflict of interest between the corporate controller and the manager of an internal audit that could also a result problem regarding objectivity.
Case 5
ReplyDeleteD.
To the President:
We would like to say that the manager of internal audit should report to the vice president rather than the corporate controller to avoid bias and remain the credibility for the attestations, and its reliability from the precision.
haist... exactly 11:25 pm done msn gd..
ReplyDeleteCASE 1
ReplyDeleteA. It is providing assurance about internal control provides assurance about the reliability of other information provided by the company because internal control is effected by those charged with governance, management and other personnel. It is the responsibility of the management to establish a control environment and maintain policies and procedures to assisst in achieving the entity’s objectives.
B. The broad engagement activities that would be involved in performing are examination of the effectiveness of internal control by the potential for human error due to carelessness, distraction, mistakes of judgement and the misunderstanding of instructions. The possibility of circumvertion of internal controls through the collussion among employees.
chapter 1 case 1
ReplyDeleteA)
providing assurance about internal control can also signifies assurance of the reliability of the information provided by the company because internal control means Methods put in place by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets and transmit management policies throughout the organization.
internal control is considered as one of the reason to the success of every organization if the management properly implemented the internal control.
B)
in performing the examination of the effectiveness of internal control the auditor or CPA's should have a consistent policies
and procedures.and as part of the engagement, CPA should obtain the responsible party a written assertion about the effectiveness of the entity's internal control, the responsible party may present it written assertion either in a separate report that will accompany the CPA's report, or in a representation letter to the CPA.
performing an examination of the effectiveness of an entity's internal control involves planning the engagement, obtaining and understanding on internal control,evaluating the design effectiveness of the control,testing and
evaluating the operating effectiveness of the controls and forming an opinion on the effectiveness of the entity's internal control or the responsible party's assertion thereon,base on the control criteria.
chapter 2 case 3
a) the objective of an independent audit is to render service for the management by means of checking the reliability of data and information they provide most especially those information reflected on the financial statements.
b)
1. independent audit makes the financial statements more credible and reliable.
2. management is the beneficiary of constructive suggestion in improving business operations.
3. commission of fraud by management and employee is minimized
4. audit financial statements provide a more credible basis for the preparation of tax returns.
5. better and sound management decisions may be made if financial records and reports are accurately maintain and provided
CASE 3
ReplyDeleteA. The objective of an audit of financial statement is to enable the auditor to express in opinion whether the financial statement are prepared in all materials respect, in accordance with an identifeid financial reporting framework or acceptable financial reporting standard.
B. Resposibility for financial statements
The management is responsible for preparing and presenting the financial statement in accordance with the financial reporting framework.
Assurance provided by the auditor
The auditor’s opinion for the finacial statement is not a guarantee that the financial statements are dependable.
General principles governing the audit of financial statement
The auditor should comply with the “CODE OF PROFESSIONAL ETHICS FOR CPA”, “PHILIPPINES STANDARD ON AUDITING “and “PROFESSIONAL SKEPTICISM”.
Need for an independent financail statement audit
Conflict of interest between management and users of financial statement, expertise, remoteness and financial consequences.
Theoritical framewofk of auditing
The audit function operates within a theoretical framework.
CASE 1
ReplyDeleteA. The internal control is the process design and affected by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of the entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulation in the company. It is the responsibility of the management and other entities to maintain and control the environment and policies in the company.
B. The activities that would be involved in performing on examination of the effectiveness of internal control must provide information and communication to establish a record and report to the entity. Communication involves understanding to the individual roles and responsibilities to the internal control. It activities represent to help the organization to accomplish the objectives of the management, stockholders and others.
CASE 3
ReplyDeleteA. The objective of an independent audit is to enable the auditor to express an opinion whether the financial statements are prepared, in all materials respects, in accordance with an identified financial reporting framework or acceptable financial reporting standards.
B. The five ways in which an independent audit may be beneficial are responsibility for the financial statements is to form and express an opinion on these financial statements, assurance provided by the auditor is designed to provide any reasonable assurance that the financial statements taken as a whole are free from material misstatement, general principles governing the audit of financial statements, need for an independent financial statements audit and last theoritical framework of auditing are to help Lyn Cruz to accomplish the benefit of her own business.
.,.,..!!!
ReplyDeleteCASE 5
ReplyDeleteA. The objectives of the interest audit function is to assists the members of the organization in the effective discharged of their responsiblities.Internal auditors ussually performs operational audits.
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ReplyDeleteD. To the Board of directors of LEE company,
ReplyDeleteYou have resquested to report of LEE company as of november 19,2011.We are pleased to confirm our acceptance and our understanding of this engagement by means of this letter.Philippine Standards on Auditing require that we have a plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.We look forward to full cooperation with your staff.Please sign and return the attached copy of the letter.
D. To the President of LEE Company.
ReplyDeleteYou have requested to report to LEE Company as of November 19, 2011. Our audit will be made with the objective of our expessing an opinion on the financial statements. Because of the test nature and other inherent limitations of an audit together with any of the accounting and internal control system, there is an unaviodable risk that even some material misstatements may remain undiscovered. We look forward to full cooperation with your staff. Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the arrangements for our audit of the financial statements.
CASE 5
ReplyDeleteA. Objectivity as it relates to the internal audit function is to accomplish their own obligation indepently to complete their duties. Their objectivity should perform to investigate and appraised the effectiveness and efficiency of operations and internal control. They should have a plan and perform with an attitude of profession skepticism to determine whether the financial statements are reliable and sufficient. The copies of audit reports are routinely sent to the audit committee of the board of directors, as well as to the corporate controller and the individual responsible for the area of activity being audited. The auditing reports should consist all the charateristics of good criteria and to express their own opinion if the financial statement is fairly presented.
B. 1. The internal auditors should perform and control the policies that is regarding with sensitive payments and standards for the internal control and it should be supported with evidence in the financial statements.
2. As a duties of the internal auditors, it is their responsibility to restore the bank statements each month for preparing and presenting in the financial statement. It is responsibility too of corporate controller if the internal auditor provide with false representations.
3. The variance analysis are prepared by the corporate controller’s staff after consultation with the individuals involved that the internal auditor have credibility to approved the budget for relevance and reasonableness of their own company.
4. The auditor should not conduct the tests of controls during the test to implement of internal control and the computer applicaton controls for the new system if the internal auditor department has materially impaired.
5. If the internal auditor department has already impaired it will affect the ability of the employees in the accounting department because it is their responsibility to do so.the internal auditor will experience many difficulties to maintain the internal control over complex transactions.
C. 1. No, because the objectivity of an internal auditor and their management must communicate and provide information for their auditing reports.
2. Yes, because if the manager of internal auditor reported to the audit committee of the board of directors it will affect and create bias to the internal auditor to their credibility that may not attain the objective of the audit.
kagapon pgd yah.. asta sbng di japun mag appear?
ReplyDeleteCHAPTER 1: CASE #1
ReplyDeleteA. An assurance give credibility to an information provided by the responsible party since assurance means auditor’s satisfaction as to reliability on an assertion made by one party for the use of another party. An auditor assesses the procedures or criteria if it is followed by the company.
B. An engagement activity involves three (3) types of audit, namely Financial Audit, Operational Audit, and Compliance Audit. The internal audit determine if the operation is functional well or operating effective and efficient, when we say effective it measures of how well an entity or unit of an entity achieves its goals and objectives and when say efficiency is achieve by minimizing of cost or what we call cost reduction in accomplishing its objective. Financial Audit involves the examination of FS to determine whether they are stated in accordance with specified criteria (GAAP). Compliance Audit, whether the auditee is following the specified procedures or rules set down by the higher authority.
CHAPTER2: Case #2
ReplyDeleteA. Financial Audit involves the examination of FS to determine whether they are stated in accordance with specified criteria (GAAP) in order to know if all material is free from misstatement or fairly stated.
B. Five (5) ways that Independent Audit is beneficial to the company:
1. To assure the accuracy of the FS
2. To provide reasonable assurance as the fairness of the FS
3. To comply with the governmental requirements
4. To take the responsibility for the FS
5. To enhance the quality of Financial Reporting
haist isa nlng gid di pa mag appear
ReplyDeleteCHAPTER3: Case#3
ReplyDeleteA. Objectivity means that an auditor or practitioner should communicate the information fairly and objectively.
Objectivity means should disclose fully, all relevant information that could reasonably expected to influence an intended users understanding the reports, comments and recommendations presented.
ReplyDeleteB. (1). As long as the practitioner practices or apply the so called Professional Ethics which are the competence, integrity, confidentiality, and objectivity so therefore it cannot affect the performance of an independent practitioner.
ReplyDelete(2).This situation showcases the proper dissemination of the scope of duties and responsibilities where in particular internal control is strengthen through the business operations.
ReplyDelete,.,.
ReplyDelete(3). In this case, I could say that Internal Control is effective and strong thus it reduces audit procedures.
ReplyDelete(4). this was reasonably correct for it is an asset or advantage of an Internal Auditor of having the knowledge on computer system applying to the internal control system. Conducting such test is one of the processes of substantive test where in it undergoes several test of the system.
ReplyDelete.,.,..,
ReplyDeletem,,mm,,
ReplyDelete5.It’s not longer included in the duty of the auditor to make accounting entries for every transaction of the operation of the company but instead the person responsible is the management and the duty of the auditor is to evaluate and verify the information given.
ReplyDeleteC. (1) No, as long as the auditor is doing his or her duties in accordance with the criteria.
ReplyDelete(2) No, because that is one of the duty of the manager to submit report to the Committee of the Board of Directors.
CHARMAINE CUENCA MA3-A
ReplyDeleteChapter 1
CASE 1
a.) The purpose of CPA reporting on internal control is to provide assurance about management is assertion about internal control is fairly stated in all materials respect, based on the control criteria being followed. Thus, for example, an examination provides the big best degree of assurance that the information produced by the system will be reliable.
D. Memo to the President
ReplyDeleteAfter gathering all information, we found out that there is misstatement in the auditing report and the accounting department .We suggest in order to avoid conflict in this matter allow your manager to report to the vice president of your company, due to the reason that your corporate controller has not made any further actions about certain matters including with the internal control of your company.
CHAPTER 2
ReplyDeleteCASE 3
a.) The objective of an independent audit is to provide reasonable assurance that the financial statement fairly reflects the economic substance of the transaction and event reflected in that statement to this end, the auditor test management is assertion as embodied in the financial statement and render an opinion concerning fairness. Testing involve gathering and evaluating evidence relating to assertions. The opinion assurance the form of an audit report formulated and issued at the conclusion of examination.
chapter1
ReplyDeletecase1
b.) When involved in performing an examination on the effectiveness of the internal control a practitioner should:
• Plan the engagement.
• Obtain an understanding of internal control.
• Evaluate the design and operating effectiveness of internal control.
• Form an opinion about the fairness of management’s assertion on internal control.
Case 3
ReplyDelete1. Independent audit is important for the financial statements of a business so that it will be examined to s if it is fairly prepared in all material respects and in accordance with an identified financial reporting framework.
2. A. Independent audit makes the financial statements more credible and reliable
B. Management is the beneficiary of constructive suggestions in improving business operations
C. Commission of fraud by management and employee is minimized
D. Audited financial statements provide a more credible basis for the preparation of tax returns
E. Better and sound management decisions may be made if financial records and reports are accurately maintained and provided.
Alaisa Olarte MA 3A
ReplyDeleteCASE 1
A.
It improves the quality of information. It helps in preventing and detecting fraud and protecting the organizations resources both physical and intangible. It determines whether compliance exists with policies, procedures, laws, and regulations.
B.
The broad engagement activities that would be involve in performing an examination of the effectiveness if internal control are:
Monitoring assess the quality of internal control performance overtime.
Operational Audits examine the use of unit resources to evaluate whether those resources are being used in the most effective and efficient manner to fulfill the Company’s mission and objectives.
Investigations seek to establish evidence of impropriety; imply a systematic track-down of information the auditor hopes to discover or needs to know.
Financial Audits it focus on accounting and reporting of financial transactions, including commitments, authorizations, and receipt and disbursement of funds. use of resources
Consulting services because it includes counsel, advice, and facilitation.
MA 3A
ReplyDeleteCASE 3
A.
Independent audit involve gathering and evaluating evidence about the preparation and fair presentation of an entity’s financial position, financial performance and its cash flow, in conformity with an acceptable financial reporting framework.
B .Five ways in which an independent audit may be beneficial to Lyn Cruz are:
1. Add credibility to the financial statement of management.
2. It Safeguards the asset of the business.
3. To see if the business is accurate and reliable to the extent that is required by general accepted auditing standards.
4. Allow obtaining a thorough understanding of the risk and controls affecting the business.
5. Serves as a set of instruction to control and record the proper execution of the work.
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ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteCASE 5
ReplyDeleteA.
Objectivity as it relates to the internal audit function is to assist members of the organization in the effective and successful performance of their responsibilities by providing with analysis, appraisals, recommendations and other pertinent information concerning the activities being reviewed.
B.
1st situation - the objectivity is not impaired because policies to be made can cultivate to perform their responsibilities.
2nd situation- the objectivity is impaired because it should be a proper statement to be call it is fairly presented.
3rd situation-the objectivity is not impaired because internal auditor’s responsibility is to review the statements so that they can have their opinion regarding if that particular activity is performance in accordance to their responsibilities.
4th situation- the objectivity is not impaired because that internal auditor performs his duties assign to him. And he also conducted the test of controls which can help him to know if his work is active.
5th situation –the objectivity is impaired because internal auditors are not particularly involved in recording process.
C.
1. No, because as a corporate controller your functions is to give advice and service to other departments.
2. No. because board of directors can also help them to solve the problems they experience.
D.
MEMORANDUM TO: President
Dear President,
We would like to recommend that the internal audit should report to a vice president rather than the corporate controller so that there is an action to be done in order to perform and correct some of the non audit activities. And as a vice president you also need to know whats happening in your company.
We ask for your early response. Thank you.
Respectfully yours,
Alaisa G. Olarte
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ReplyDeletecase 1:
ReplyDeletea. the Certified Public Accountant (CPA) should always be independent in providing assurance. now a days, internal auditors should provide these audit committees clearly stated assurance in the organization. CPA's must be competent and be always excel in all work in the management works. to have a good and meet a high expectations to all, they will be responsible to their work to have an effective internal control.
b. the broad engagement that would be involved is that reviewing the application of financial statement, operations l control and etc.
The essentials for effective internal auditing are:
(a) independence
The internal auditor should have the independence in terms of organizational status and personal objectivity which permits the proper performance of his duties.
(b) staffing and training
The internal audit unit should be appropriately staffed in terms of numbers, grades, qualifications and experience, having regard to its responsibilities and objectives. The internal auditor should be properly trained to fulfill all his responsibilities.
(c) relationships
The internal auditor should seek to foster constructive working relationship and mutual understanding with management, with external auditors, with any other review agencies and, where one exist, the audit committee
(d) due care
The internal auditor should exercise due care in fulfilling his responsibilities
(e) planning, controlling and recording
The internal auditor should adequately plan, control and record his work .
(f) evaluation of the internal control system
The internal auditor should identify and evaluate the organization's internal control system as a basis for reporting upon its adequacy and effectiveness.
(g) evidence
The internal auditor should obtain sufficient, relevant and reliable evidence on which to base reasonable conclusions and recommendations.
(h) reporting and follow-up
The internal auditor should ensure that findings, conclusions and recommendations arising from each internal audit assignment are communicated promptly to the appropriate level of management and he should actively seek a response. He should ensure that arrangements are made to follow up audit recommendations to monitor what action has been taken on them.
case 3
ReplyDeletea. the objective of an independent audit should provide a reasonable assurance that the financial statements are fairly presented.
b. the 5 ways in which an independent audit may be beneficial to Lyn Cruz are the following:
1. to determine accounts receivable and payable under bonus, profit-sharing, and pension plans; lease agreements; royalty agreements and other contracts and agreements.
2. to serve as an error and/ or irregularity prevention device by making employees aware of audit coverage.
3. an independent audit should facilitate the effort of Lyn in raising a new capital.
4. an independent auditor should assists Lyn to improve the physical safeguard over assets.
5. identify the weaknesses in the accounting system in order to correct it.
case 5
a. Objectivity is a mental attitude which internal auditors should maintain while performing engagements. The internal auditor should have an impartial, un-biased attitude and avoid conflict of interest situations, as that would prejudice his/her ability to perform the duties objectively. The results of internal audit work should be reviewed before they are released in order to provide a reasonable assurance that the work has been performed objectively. Internal auditors should not assume any operational responsibility. Objectivity can be presumed to be impaired when internal auditors perform an assurance review of any activity for which they had any authority or responsibility within the past year or a period significant enough to influence their judgment or opinion. Internal auditors should not accept gifts or favors from others such as employees, clients or business associates. The internal auditors should adopt a policy that endorses their commitment to abiding by the Code of Ethics, avoiding conflicts of interest, disclosing any activity that could result in a possible conflict of interests. Staff assignment of internal auditors should be rotated periodically whenever it is practicable.
case 5.
ReplyDeletea. Objectivity is a mental attitude which internal auditors should maintain while performing engagements. The internal auditor should have an impartial, un-biased attitude and avoid conflict of interest situations, as that would prejudice his/her ability to perform the duties objectively. The results of internal audit work should be reviewed before they are released in order to provide a reasonable assurance that the work has been performed objectively.
case1.
ReplyDeletea.)internal control provides assurance about the reliability of other information provided by the company. as we all know that the main objective of the independent audit is enable to express an opinion whether the financial statement is fairly presented, in all material respect with an identified financial reporting framework. in this regard the level of assurance provided by the professional accountants conclusion conveys the degree of confidence that the intended user may place the credibility of the subject matter.
b.)it is important that the auditor should inspect carefully every accounts on the financial statements so that he can assure that his work is correct.he can do observation,where he can observe how the business work.whether it is gaining profit or losses. he can also do cash count must be done together with the custodian and should be done in surprise basis.
case3.
ReplyDeletea.)
the objective of an independent audit is to check the financial statement so that they will have an assurance to their financial statement that Lyn Cruz has personally prepared.the auditors opinion help established the credibility of financial statement.the objective of the ordinary examination of financial statements by the auditor is the expression of an opinion the fairness of such fin. statement.
b.)
1. the independent audit should make the financial statements more credible and reliable.
2.the management is the beneficiary of constructive suggestions in improving business operations.
3.commission of fraud by management and employee is minimized.
4.the audited financial state provide more credible basis for the preparation of tax returns.
5.the better management decision should be made by,or if fin. records and reports are accurately maintained and provided.
Case 1
ReplyDeletea. Internal control may assure that the objectives of the company’s works are easy to be done. Internal control represents and procedures in the company that would help the management to attain their goals.
b. The broad engagement activities that would examine the effectiveness of internal control are to done by way of inspection, observation, inquiries and conformations to afford a reasonable basis for an opinion regarding the financial statements under examination
case5
ReplyDeletec.
1.no.because the internal auditor has a responsibility to report the financial statement.
2.yes.
Case 1
ReplyDeletea. CPA’s are requested to provide assurance about effectiveness of internal control because CPA’s are said to be independent and they have the knowledge about the Code of Ethics as their basis in doing what is right, so we presumed that the information is reliable than the information provided by the Company because their might be a tendency that they will hide all their anomalies.
b. An assertion about the effectiveness of internal control results from applying a framework for evaluating the effectiveness of internal control. The term “subject matter information” will be used to mean the outcome of the evaluation or measurement of subject matter
Case 1
ReplyDeleteB.
There are some engagement activities that would involved in performing an examination of the effectiveness of internal control. For example a Business Performance Measurement Services this system measure the performance of the management whether it is reliable and are used accurately leading the entity towards meeting its strategic goals and objectives. Other example is that a Health Care Performance Measurement involves the evaluation of the quality of health care and medical outcome.
Case 3
ReplyDeletea.
As an independent audit the objective is to enable the auditor to express an opinion whether the financial statement is "present fairly;in ll material respect" with an identified financial reporting framework. In this case, Ms. Cruz should have a fairly presented financial statements from an independent auditor's opinion that helps establish the credibility of her F/S. The user,however, should not assume that the auditor's opinion is an assurance as to the future variability of the entity nor an opinion as to the efficiency or effectiveness with which management has conducted the affairs of the entity.
Case 3
ReplyDeleteB.
Five ways in which an independent audit may be beneficial to Lyn Cruz are:
1. Independent audit makes the financial statements more credible and reliable.
2. Management is the beneficiary of constructive suggestions in improving business operations.
3. Commission of fraud by management and employee is minimized.
4. Audited F/S provide a more credible basis for the presentation of tax returns.
5. Better and sound management decisions may be made if financial records and reports are accurately maintained and provided.
Case 1
ReplyDeletea. Providing assurance about the internal control assures the management and the board of directors that the accounting controls and processes used are effective, as well as increased confidence in the company by investors, regulators and the general public
b. An engagement to examine the effectiveness of the entity's internal control is to express an opinion on the effectiveness of the entity’s internal control, in all material respects, based on the control criteria or whether the responsible party's written assertion about the effectiveness of internal control is fairly stated, in all material respects, based on the control criteria. The practitioner's opinion relates to the effectiveness of the entity's internal control taken as a whole, and not to the effectiveness of each individual component of the entity's internal control.
CASE 1
ReplyDeleteA.
Internal control is very important to provides assurance about the reliability of other information provided by the company, because if the company has internal control they may assure that the objectives in their companies work is easy to be done. Internal control, represents the policies and procedures that the stockholders have implemented to provide themselves with reasonable assurance that their objectives will be achieved. Designated to provide reasonable assurance that the entity achieves objectives which effectiveness and efficiency operations, the reliability of financial reporting and compliance with applicable laws and regulations.
B.
As a CPA's many broad engagement activities that would be involved in performing an examination of the effectiveness of internal control, just like inspection or check, it is important that the auditor should inspect so that she or he can assure that the financial statements is correct. Also he can do observation were he can observe how the business is going on whether it is gaining profit or incurred losses.
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ReplyDeleteCase 1.
ReplyDeletea. The CPA’s should be independent in order to provide assurance service; that is, he/ she should have no vested interest in the information reported on. The CPA’s only interest should be the accuracy of the information, not whether the information portrays results favorable or unfavorable to either the entity prepares the information or the one who use it.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeletejanet dela cruz
ReplyDeleteCASE 5
ReplyDeleteA.
Objectivity as it relates to the internal audit function is that the internal auditors exhibit the highest level of professionals objectivity in gathering, evaluating and communicating information about the activity or process being examined.
B.
In the first situation, the objectivity of Lee company's internal audit department has not been materially impaired, because the internal auditor's can assist the policy statements but the internal auditor's should have independence to control each statements.
In the second situations, the objectivity of Lee company's internal audit department has been materially impaired, because the corporate controller did not communicate to the internal auditor that he or she receipt and disbursement or cash. The internal auditor must know if the corporate controller make a receipt so that the internal auditor can easily record to the financial statements and so that the financial statements could not be misstated.
In the third situation, the objectivity of Lee company's is materially impaired, because internal auditors are asked to review the budget data in every each year for relevance and reasonableness before the budget is approved, so therefore the budgeting is fairly presented. In addition the internal auditor examines the variances and associated explanations each month, so this variances which prepared by the corporate controller was assure and very well presented.
In the fourth situation, the objectivity of Lee company's is materially impaired, because the internal auditors was involved in the design, installation, and initial operation of a new computer system, so he or she has responsible for the design and implementation of internal controls and computer application controls for the new system.
In the fifth situation, the objectivity of Lee company's is not materially impaired, as employees in the department ,you are responsible to record those transactions, so that the internal auditors can also make an entries for that.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
case 1
ReplyDeleteb. The broad engagement activities that would be involved in performing an examination of the effectiveness of internal control are the ff:
1. Reviewing and appraising the soundness, adequacy and application of acctg., financial and other operational controls and promoting effective control at reasonable cost.
2. Ascertaining the extent of compliance w/ established policies, plans and procedure.
3. Ascertaining the extent to w/c the company assets are accounted for and protect it from losses of all kinds.
4. Apprasing the quality of performance in carrying out assigned responsibilities.
5. Recommend the operating improvements in the management.
Case 3.
a. The overiding objective of an independent audit is to provide reasonable assurance that the fianancal statements are fairly reflect the economy substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions asembodied in the financial statements, and renders an opnion concerning fairness. Testing involves gathering and evaluating evidence realating to the assertions.
b. An independent audit may be beneficial to Lyn Cruz in the ff. ways:
1. Correction of identified weaknesses in the accounting system may be improve the quality of financial reporting.
2. The indepeent auditor may be also or able to assists Lyn in improving physical safeguards over assets.
3. An independent audit may also facilitate Lyn’s effort in raising new capital.
4. The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues.
5. Although not designed for this purpose, the audit may disclose defalcations by employees.
Chapter 1 case 1
ReplyDeleteA. Providing assurance in the context of framework refers to the auditors satisfactionas to the reliability of an assertion made by one party for use by another party. To provide such assurance the auditor assess the evidence collected as a result of procedures and express a conclusion. The degree of satisfaction achieved and therefore the level of assurance which may be provided is determined by the procedures, and their results
B. The broad engagement activities that would be involved in performing an examination of the effectivenesss of internal control is o provide a high level of reasonable assurance helping the companies main objectives towards the achievement of their obligations and goals.
ReplyDeleteCASE # 1
ReplyDeleteA.To provide such assurance the auditor assesses the evidenced collected as a result of procedures conducted and express a conclusion. The degree of satisfaction achieved and therefore the level of assurance which may be provided is determined by the procedures performed and their results.
B.Internal control will be evaluated for effectiveness since they affect the reliability of the financial records. By inquiry, observation, confirmation and inspection, the auditor can test the existence and validity of assets, liabilities, overall reasonableness of other account balances in the financial statements.
gakadula gui...hai ambot
ReplyDeleteChapter 3 case 5
ReplyDeletea. Objectivity in relation with the internal audit function is an obligation of an auditorto accomplish their tash with properhandling of their profession and morality and maintain the highest standard of ethical conduct such as competence, confidentiality, integrity and objectivity. The auditing report must consist all the characteristics of good criteria.
b. Being an internal auditor of the company you must take a lots of obligation such as to audit the cash control, budgets, expenses of the company. Your responsibility also is to make and check bank statements as well. In such cases you may ablew to determine the materiality of the financiasl statementwhen the internal auditor does not doing concern of what are the transaction that being affected by the statetments.
c. 1. No because if you apply the responsibilities of aninternal auditor, they make their audit report which shows or communicate, give their verifications whatever the results of the financial statements base on their opinion.
chapter 2
ReplyDeletecase 3
b.) An independent audit may be beneficial to LYN CRUZ.
1. Correction of identified weaknesses in the accounting system may improve the quality of financial reporting.
2. Independent auditor may be able assist LYN in improving physical safeguard over asset.
3. An independent auditor may facilitate LYN’s efforts in raising new revenue.
4. To determine amount s receivable and payable under bonus, profit sharing and pension plan; lease agreement, royalty agreement and other contracts and agreement.
5. To serve as error and irregularity prevention device by making employee aware of audit coverage.
This comment has been removed by the author.
ReplyDeleteCASE # 3
ReplyDeleteA.The opinion of an independent audit is important. The objective of this is to express an opinion whether the financial statements are prepared in all material respects in accordance with an identified financial reporting framework. The phrase used to express the auditor’s opinion is present fairly in all material respects. A similar objective applies to the audit of financial or other information prepared in accordance with appropriate criteria. They determine if such statements have been prepared in conformity with financial reporting practices that are appropriate for auditee.
The overriding objective of an independent audit is to provide reasonable assurance that the financial statements fairly reflect the economic substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions as embodied in the financial statements, and renders an opinion concerning fairness. Testing involves gathering and evaluating evidence relating to the assertions.
CASE # 3
ReplyDeleteA.The opinion of an independent audit is important. The objective of this is to express an opinion whether the financial statements are prepared in all material respects in accordance with an identified financial reporting framework. The phrase used to express the auditor’s opinion is present fairly in all material respects. A similar objective applies to the audit of financial or other information prepared in accordance with appropriate criteria. They determine if such statements have been prepared in conformity with financial reporting practices that are appropriate for auditee.
The overriding objective of an independent audit is to provide reasonable assurance that the financial statements fairly reflect the economic substance of the transactions and events reflected in those statements. To this end, the auditor tests management’s assertions as embodied in the financial statements, and renders an opinion concerning fairness. Testing involves gathering and evaluating evidence relating to the assertions.
chapter 3
ReplyDeletecase 5
d.) Dear President
We recommend that the manager of the internal auditor report to the Vice President rather than the controller. A large part of the working of the internal auditors do involves an examination of the accounting system a deleted transaction which is function for which the controller is directly responsible. If the manager of the internal audit reports to the controller, the controller may prevent the internal auditor from looking at issues that need to be examined. Further, the internal audit manager may feel compelled to avoid being completely canned did about matters under the supervision of the controller.
We will be pleased to discuss these and any other issuance without your convince.
Sincerely,
B. These are the five ways in which an independent audit may be beneficial to Lyn Cruz:
ReplyDelete1.Correction of identified weaknesses in the accounting system may improve the quality of financial reporting;
2. An independent audit may facilitate Lyn’s efforts in raising new capital;
3.The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues;
4.The independent auditor may be able to assist Lyn in improving physical safeguards over assets;
5.Although not designed for this purpose, the audit may disclose defalcations by employees
B. These are the five ways in which an independent audit may be beneficial to Lyn Cruz:
ReplyDelete1.Correction of identified weaknesses in the accounting system may improve the quality of financial reporting;
2. An independent audit may facilitate Lyn’s efforts in raising new capital;
3.The audit may identify a need for improved budgeting and performance reporting, thus improving control over costs and revenues;
4.The independent auditor may be able to assist Lyn in improving physical safeguards over assets;
5.Although not designed for this purpose, the audit may disclose defalcations by employees
CASE # 5
ReplyDeleteA.Objectivity means that the internal auditor must have and maintain an unbiased and independent viewpoint in the performance of audit test, evaluation of the results and issuance of the audit findings. Objectivity would not exist if the internal auditor were to audit his or her own work.
B.1. Objectivity is materially impaired because the statements are inadequate
2. It is impaired because the auditor should not perform assignment that are included as part of the independent evaluation and verification or proper internal control.
3. It is impaired because the internal auditor makes managerial decisions concerning performance in the review of variances.
4. It is impaired in the sense that the internal auditor is called on to evaluate the designs and implementation of the system in which he or she played a significant rule.
5. It is impaired because the internal auditors should not to be involved in the recording process.
CHAPTER 3
ReplyDeleteCASE 5
2. Objectivity is impaired. The preparation of the bank reconciliations is a control over cash. To maintain objectivity, the auditor should not perform assignment that are included as part of the independent evaluations and verification of proper internal control. Separation of duties should be mentioned.
3. Objectivity is impaired when internal auditor make managerial decisions conserving performance in the review of variances.
4. It is impaired in the internal auditor will be called on the evaluate the design and implementation of the system in which he or she played significant rule.
5. Objectivity impaired. The internal auditors should not be involved in the recording process.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeletecase# 5
ReplyDeleteC.Yes, the reporting relationship results in an objectivity problem. The internal audit staff is responsible for the independent and objectives review and examination of the accounting system and related transactions.
This comment has been removed by the author.
ReplyDeletecase# 5
ReplyDeleteC.Yes, the reporting relationship results in an objectivity problem. The internal audit staff is responsible for the independent and objectives review and examination of the accounting system and related transactions.
SAN.O KPA MASULOD MAN!!HAIST.....
ReplyDeletemau ka pa ky may ara an..aq la gd..huhuhu
ReplyDeleteCASE 5
ReplyDeleteCHAPTER 3
a.) Objectivity means that the internal auditor must have and maintain an unbiased and independent viewpoint in the performance of audit test, evaluation of the results and issuance of the audit findings. Objectivity would not exist if the internal auditor were to audit his or her own work. Objectivity implies that the internal auditor judgment is not subordinate to the judgment of another and that others do not exert an influence over.
chapter 3
ReplyDeleteb.) 1. Objectivity not impaired. Development of written policies and produces guide LEE’s staff is responsibility of the internal audit staff. The internal auditors are responsible for the independent evaluation and verification of proper internal control.
case#3
ReplyDeletea.the objective of an independent audit is to provide reasonable assurance that the financial statements fairly reflect the economic substance of the transactions and events reflected in those statements.to this end.the auditor tests management's assertions as embodied in the financial statements,and renders an opinion concerning fairness.testing involves gathering and evaluating evidence relating to the assertions.the opinion assumes the form of an audit report formulated and issued at the conclusion of the examination.
This comment has been removed by the author.
ReplyDeleteb.An independent audit may be beneficial to Lyn Cruz in the following ways:
ReplyDelete1.correction of identified weaknesses in the accounting system may improve the quality of financial reporting.
2.improving physical safeguards over assets.
3.raising new capital.
4.improve budgeting and performance reporting. thus improving control over costs and revenues.
5.disclose defalcations by employees.
case#1
ReplyDeleteA.Internal Control provide reasonable assurance about the achievement of the entity's objective with regard to reliability of financial reporting effectively and efficiency of operation and compliance with applicable laws and regulations in the company.
case 5
ReplyDeleteA.Objectivity means as an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that the quality of their work is not compromised in any way.
Case 5
ReplyDelete1. Objectivity is a principle that seeks to minimize any subjectivity or personal judgment affecting the recording and summarizing of financial transactions on the part of the person undertaking the preparation of the records
2. A. The company’s objectivity in internal audit department has been materially impaired because it’s not the internal auditors who are responsible for preparing policy statements on internal control but the management.
ReplyDeleteB. The company’s objectivity in internal audit department has been materially impaired because the bank reconciliation should be done by the accountant and the auditor only examines and verifies if the transaction is true or done correctly.
C. The company’s objectivity in internal audit department has been materially impaired because the corporate controller’s staff is responsible for the review of the budget data, and the internal auditors are responsible for the examination of the variances and associated explanations each month.
This comment has been removed by the author.
ReplyDeleteD. The objectivity of the company has been materially impaired because it is not the internal auditors but the management that must be involved in the design and implementation of internal controls and the computer application controls for the new system. Nonetheless, the auditor has to understand the company’s information system, internal control, its design and more importantly whether such controls are placed in operation.
ReplyDeleteE. The objectivity of the company has been materially impaired because the employees making the complex transaction is not adequately trained. Therefore, it may weaken the internal control of the company.
3. A. Reporting to the corporate controller may result problem of objectivity because the controller responsible for all financial accounting reports and the controller might alter the financial statements and report it to higher authority to his advantage or interest.
ReplyDeleteB. Yes. The situation may be different if the manager reported directly to the audit committee of the board of directors because the board might have done something to the problem and strengthens the internal control of the company.
4. Dear President,
ReplyDeleteI would to suggest that the manager of internal audit will directly report to the Vice President than to the corporate controller because there some problems with the internal control and it seems that the controller don’t have plans of taking an action for such problems. The Vice President might be a big help to solve this problem and strengthen the internal control of the company.
I hope you’ll consider my suggestion and we can discuss it personally if you want.
Bebs A. Carbaquil BSBA- MA III- A
ReplyDeleteCase 5
a. Objectivity- means that the internal audit function should disclose fully all relevant information that could reasonably be expected to influence an intended users understanding of the reports, comments and recommendation presented.
b. 1. Yes, this is materially impaired because the statements are incomplete.
2. Yes, this is materially impaired because lack of information.
3. Yes, this materially impaired because the information is misstated.
4. No, this is not materially impaired.
5. Yes, this materially impaired because of the statements are renounced.
c. 1. Yes, because both of them are intended users so there might be a tendency that the information is materially false and misleading.
2. Yes, because if he reported it straight or directly to the audit committee of the Board of Directors, the said department will not be materially impaired because they will take an action to detect it.
d. From: Manager
To: President
“Due to misstatements of the information for the internal control I would suggest that this would be reported to the Vice- President to take immediate action.”
case # 5
ReplyDeleteD.MEMO
To: President
Because of the misstatements of the information for the internal control I would suggest that this would be reported to the Vice- President to take immediate action rather than the corporate controller because such actions in solving that problems would be based to the vice president before reporting it to the corporate controller or the chief information officer.
case # 5
ReplyDeleteD.MEMO
To: President
Because of the misstatements of the information for the internal control I would suggest that this would be reported to the Vice- President to take immediate action rather than the corporate controller because such actions in solving that problems would be based to the vice president before reporting it to the corporate controller or the chief information officer.
isa n lng kulang q..sulod mn ai!
ReplyDeleteCase 5
ReplyDeletea. Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating and communicating information about the activity or process being examined. Internal auditors make a balance assessment of all relevant circumstances and not unduly influenced by their own interest or by others in forming judgment. Internal auditors shall not participate in any activity or relationship that may impair or to be presumed to impair their assessment. Internal auditors shall not accept anything that may impair or presumed to impair their professional judgment. They may also disclose all material facts known to them that if not disclosed may be distort the reporting of activities under review.
Ermie P. Panesa BSBA-MA 3-B
ReplyDeleteCHAPTER 1 CASE 1:
a) Following the standard policies and procedure implemented in the company can result to a strong internal control so if the company has a strong level of internal control the level of assurance about the reliability of the information they have provided was accurate.
b) A broad engagement activity that would be involve in performing an examination of the effectiveness of internal control for me was like for example the acquisition of company’s new asset and for the auditor to include it in the company’s asset he/she should know the following:
•Was it mentioned in the Minutes of the Meeting?
•Was it approved by the Board of Directors?
•Did it undergo a legal procedure like opening it to the public for bidding or price canvassing?
•He/she must look for the ownership.
•He/she must check for the Deed of Sale.
Ermie P. Panesa BSBA-MA 3-B
ReplyDeleteCHAPTER 2 CASE 3:
a) The objective of an independent audit is to enable the auditor to express an opinion whether the financial statement are prepared, in all material respects, in accordance with appropriate criteria and to avoid information risk that would eventually lead to a misleading information to the intended users.
b)Five ways in which an independent audit may be beneficial to Lyn Cruz are the following:
•Independent audit makes the financial statement more credible and reliable.
•Management is the beneficiary of constructive suggestion in improving business operation.
•Commission of fraud by management and employee are minimized.
•Audited financial statement provides a more credible basis for the preparation of tax returns.
•Better and sound management decision may be made a financial record and reports are accurately maintained and provided.
Chapter 3
ReplyDeleteCase 5
A. Objectivity as related to internal audit function is the act of communicating all relevant information that is expected to influence their understanding of reports.
B.
1. In the first situation, the objectivity of Lee’s internal audit department has been materially impaired because the internal auditor must not have any assistant. He or she must be independent.
2. This situation tells us that the objectivity of Lee’s internal audit department is not materially impaired because it is true that bank reconciliation strengthens internal control.
3. This situation tells us that the objectivity of Lee’s internal audit department is not materially impaired because the information is relevant and reliable.
4. In this situation, the objectivity of Lee’s internal audit department is not materially impaired because the internal control functions well.
5. This situation tells us that the objectivity of Lee’s internal audit department has been materially impaired because the employees in the accounting department are not adequately trained to handle those transactions.
C.
1. Yes. This reporting relationship will result in a problem of objectivity because the information will not be fairly-presented and the users will not understand the reports.
2. Yes. This would change any of the five situations because the board of directors will surely make some actions about those five situations.
D.
Memo to the President
From: the Manager
In order to avoid misstatements of the information on the FS, it should be reported to the Vice President or to the Audit Committee to make their work correct, relevant, reliable, competent and also to found how to make things clean and clear for the internal audit.
ahai ang part 1 ko la gah sulod..:'(
ReplyDeletenka sulod man gd..pro gka dula japon..:'(
ReplyDeleteteh dw! dula gd xah!..
ReplyDeleteahai
ReplyDeleteGood work guys... I am still waiting for the others....the clock is ticking....avoid delays...time wasted, points wasted...if others can do it why can't you.
ReplyDeletehello sir..sorry kung delayed nah ang pag post..since friday pani nga posting, gkadula..
ReplyDeletesir,sorry gd ang gin post q sg friday la gd nag appear..repost q na lg gd liwat...
ReplyDeletedula namn sa..ahai..
ReplyDeletecase 5
ReplyDeleteA.Objectivity is an indispensable attitude in the relationship between the auditor and the auditee.It ensures that the auditor`s findings and reports will be influenced only by the facts established during the audit,in accordance with current rules and accepted principles and practices
hala ang case 1 q diin na???????? dw nadula xa....
ReplyDeleteahai...........
ReplyDeletend lng ky daw,,,dula gd..hai
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteahai.. la nagd bzkan 1 hu... haizt!!!!
ReplyDeleteoi dn na gd post q d?
ReplyDeletehaist...repost na lg ulit
dula namn? hai hai nku...
ReplyDeletela gd yah...
ReplyDeleteChapter 3-Case 5
ReplyDeleteA. Objectivity as related to internal audit function is the act of communicating all relevant information that is expected to influence their understanding of reports.
B.
1. In the first situation, the objectivity of Lee’s internal audit department has been materially impaired because the internal auditor must not have any assistant. He or she must be independent.
2. This situation tells us that the objectivity of Lee’s internal audit department is not materially impaired because it is true that bank reconciliation strengthens internal control.
3. This situation tells us that the objectivity of Lee’s internal audit department is not materially impaired because the information is relevant and reliable.
4. In this situation, the objectivity of Lee’s internal audit department is not materially impaired because the internal control functions well.
5. This situation tells us that the objectivity of Lee’s internal audit department has been materially impaired because the employees in the accounting department are not adequately trained to handle those transactions.
C.
1. Yes. This reporting relationship will result in a problem of objectivity because the information will not be fairly-presented and the users will not understand the reports.
2. Yes. This would change any of the five situations because the board of directors will surely make some actions about those five situations.