BUS 426 Lecture Notes - Audit Risk, Engagement Letter, Financial Statement

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sapphiresnake846

19 Sep 2012

School

Simon Fraser University

Department

Business Administration

Course

BUS 426

Professor

Michael Favere- Marchesi

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Document Summary

To see if the financial statements fairly presented and in accordance with gaap. We audit because we want to express an opinion. Provide fair representation in the financial statement. Overall objective of the independent auditor (cas 200) Provide reasonable assurance that there are no material misstatements. Plan and perform audit in accordance with gaas. Intentional: management fraud or fraudulent financial reporting: management trying to trick investors, creditors, etc, employee fraud: theft of company assets, computer fraud: fraud committed on the computer. Illegal acts: for example: company is violating income tax, which has direct-effect on the financial statements: direct-effect: a direct effect on your financial statement, indirect-effect: an indirect effect on your financial statement, ex. Dumping chemical waste into the river, which when found, will change your balance sheet. First ask yourself, am i independent? : different threats to independence. Review: you designed part of the company. Advocacy: when the firm or member is perceived to promote the client"s position.

Related Questions

Which of the following statements is true of business ethics?

a. Ethical behavior can not only enhance a company's reputation but can also drive profits.

b. Conducting business in an ethical manner does not influence the financial performance of a company.

c. Social responsibility is directed only toward a company's customers and not its employees.

d. Social responsibility in business is less important than satisfying shareholders.

e. Business ethics is not relevant to nonprofit organizations.

silverwombat742

Which of the following is a benefit derived from budgeting?

A) Budgeting focuses management's attention on the future.
B) Budgeting provides coordination of departments.
C) Budgeting provides a basis for evaluating performance.
D) Budgeting provides motivation for managers and employees.
E) All of the choices are benefits derived from budgeting.