Many organizations are growing frequently. Potential risks should not be taken kindly. These auditors’ entities would have a clear understanding of the potential consequences that can increase the audit risk on how to insure positive outcomes. Firms would increase their experience to virtualization their relationships with consumers, suppliers, and partners. Auditors would need to experience a trusting and assurance relationships. The greater pressure would be independent auditors was to indicate trust and assurance. Ronen & Cherney [2002] indicated the independent auditors are expected to be trust providers to the level of being ‘insurers’. Auditors have to talk reasonable assurance, true and fair production that their stakeholders …show more content…
The auditors would have to make more serious attempt to do an official analysis of an organization’s e-commerce strategy with SAS-94. The auditor would understand that the information technology is based on dependant internal controls. To work with the helpdesk specialists, auditors need sound information technology that is capabilities to conducting their detailed audit. To understand these types of information technology can become more crucial for auditors to face with accounting transaction especially in the electronic form. Technologies such as electronic data interchange; image processing and electronic funds transfer [Deshmukh & Romine, 2002] use very little of paper. With auditors reveal their services for both clients has to be financially and technically competent regarding their information technologies. Auditors will also need to revise their annual traditional audit approach by focusing on an organization’s e-commerce strategy [Good & Schultz, 2002] and the associated e-commerce risks that may …show more content…
These controls are likely to prevent and detect the material misstatements in specific financial statement claims can relate directly to one or more of them, but with the auditors continued to effective their operation can depends on its general controls that are indirectly related to the claims. Other automated tools could test the operating effectiveness to the indirect controls like the access controls. Specialized computer skills can be needed to design and perform the test in controls. Ultimately, these situations call for an assessment in the level in control risk for specific financial statement claims. The demand level in control risk could determine the acceptable level in detect the risk for the financial statement claims. As the acceptable level in detect decrease risk and the assurance can provides from substantive tests could increase. The Statement Auditing Standards-94 can change the documentation requirements for understanding and evaluating internal control. Consistent with the previous guidance in the Statement Auditing Standards-55 is a form and extent in this documentation depends on the nature and complexity in the data entity’s controls. Generally, the more complex the internal control and the more extensive the procedures performed and more extensive the documentation could
Arens, Alvin A., Elder, Randall J., and Beasley, Mark S. (2012). Auditing and Assurance Services:
Auditors do not provide audit opinions for different levels of assurance. Therefore, auditors consider providing more or less assurance when modifying evidence for engagement risk to be unnecessary. However, auditors should be professionally responsible to accumulate additional evidence, assign more experienced personnel, and review the audit more thoroughly, particularly when a client poses a higher than normal degree of engagement risk. The auditor should also modify evidence for engagement risk when high legal exposure and other potential actions affecting the auditor
The expenditure cycle starts with a purchase requisition. When a department feels the necessity of acquiring something they fi...
This case covers an audit on the IT department of Bluegreen Corporation; bluegreen corp. is a real estate developer and resort operator based in Florida, arranged by the company’s’ Vice President and CIO Sheila Beauchesne to achieve growth in the IT infrastructure of the company. The audit was carried out by the VP and CIO Sheila Beauchesne to understand the company’s overall spending and expenditure on its IT, GIP (Global information partners) were hired as the auditing team, Bluegreens IT financial auditor Krista Parker was made the audits main point of contact in case when the auditing team needs any information regarding the organization, and the IT manager of support Gary Kaul
The Public Company Accounting Oversight Board, by authority of the Sarbanes-Oxley Act of 2002, is responsible for the creation of auditing and the associated professional practice standards for registered public accounting firms to abide by when preparing and issuing audit reports. The auditing standards relating to audit risk, audit evidence, and the relationship of auditing standards to quality control are outlined in Auditing Standards 1101, 1105, and 1110. This block of standards enumerates the general concepts relating to auditing standards.
This section was included to reduce potential for fraud in publicly traded companies by adding more strict procedures and requirements for financial reporting. Management was responsible to create or enhance their internal controls and follow-up with a report assessing the effectiveness of the control structure. For many companies, this section was the most complicated and most expensive to implement because it also required management to report on the shortcomings of the controls. These reports also needed to be checked for accuracy by an external, registered auditor to confirm the operation and effectiveness of the
According to the article authored by Mark Rupert, what are the seven best practices in the roles and responsibilities of an internal audit function?
An auditor needs to follow, abide and comply with the standards, rules and regulations of their profession, as these will help the auditor to recognize when independence and objectivity are compromised. Works Cited Gray, Iain and Stuart Manson. The Audit Process: Principles, Practice and Cases. London: Thomson Learning, 2008. Print.
The implementation of big data into the audit profession will be welcomed considering the current business environment. While there are some drawbacks, big data has a role in audits. The main questions that will face the new wave of auditors will be in which ways and how big data can be used in the audit program. It’s clear that auditing standards, clients, firms, and higher education will all have to address these issues in the near future as audit adapts to the potential of big
Firstly, external auditors need inquiry the tone of the top, because it can affect the culture, ethical behaviors and management of company, and also have an influence on completing expected value and internal budget. The auditors and the company negotiated the audit objectives, including the focus of audit content. The company authorized to audit staff, through a dedicated data port on the system to do real-time monitoring. We found the problem, real-time notification of the Board of Directors. Besides, auditors should estimating the significance and likelihood of occurrence of the risks that mentioned in the last part. Auditors can separately establish a risk control model based on the type of transaction and project data may exist for projects focusing on monitoring. As for the control activities, auditors should check the accuracy and completeness of transactions in information processing and comparing actual finance to budget. When data is present and anticipated significant differences, the company needs to inform the auditor investigation. During the planning phase, called by the auditors customers ' financial information, analyze the customer 's financial status, risk may exist to predict. Entry tickets for all of the company and the project should be documented, to ensure that all are kept in the company safe. For the number of items and bills, funds and stocks, the staff has
Audit procedures are a set of detailed instructions written to obtain sufficient audit evidences to perform the company’s audit report. Audit procedures must be carefully planned and written because it is used as the guidelines to collect audit evidences.
A busy executive with a data integrity mind set has to control information coming in, through its processing phases and ending in the customers hands as a usable product. Free from any modification and as accurate as it can possibly be, If they get the information at all. (DOS in mind). Information security executive needs to ensure that the organization has procedures for account management, backup, incident handling, standardized and authorized software and hardware, disaster recovery, and a Continuity of Operations Plan, or COOP. Moreover, identifying whom is responsible for what plays an important role as well.
The report also talks about the differences between, advantages and disadvantages of e-business and e-commerce. Recommendations and advice have been given in the end for businesses intending to adopt an e-business dimension.
The Resources Group, 2012, Components Of A Computerized Accounting System. Available at: . [Accessed 12 November 2013]
Consequently, e-business and especially online shopping is crucial for retail stores. They should provide necessary infrastructure for selling their products online. By taking advantage of e-business not only they can get competitive advantage of online shopping, but the...