Bluegreens IT Audit Case

opinion Essay

882 words

Case Analysis: Inside an IT audit by Meridith Levinson (CIO) 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 …show more content…

GIP initially anticipated this audit to be fairly easy but it appeared that it wasn’t as straightforward as it looked; the final analysis on the audit had all the results and findings which were presented to Sheila Beauchesne and her staff by GIP’s auditor David Burkett. The results indicated several points such as the quality of service provided by Bluegreen Corporation is fairly lower as compared to other organization which is why their costs are low. One of the key findings that the audit brought up were Bluegreen’s telecommunication rates which were classified as very competitive by the auditing team as they were spending a lot less annually than the other organizations which were taken as reference and the results also showed that there was need in improvement in the help desk support department. But there were several needs from Bluegreen Corporation which were not fulfilled, like costs relating to software licenses, hardware and costs relating to application development and testing were never …show more content…

Data acquisition and information management was one of the key factors of the project. There was not a lot of information available so GIP needed to dig in for the necessary details themselves. In my opinion, GIP relied a little too much towards the information that was fed by the Bluegreen associates, which resulted in discrepancies. Also, lack of data tempted GIP to generalize information based on the data from Indianapolis call

In this essay, the author

Explains that the case covers an audit on the it department of bluegreen corporation, a real estate developer and resort operator based in florida.
Explains beauchesne had to know the company's it budgeting in a lot more detail than they were used to. the objective was to compare it with other organizations of similar scale.
Explains that although the recommendations and analysis helped sheila beauchesne get the approval for additional workforce, new support and management systems, and improved reporting on the company's it accounts and budget, it was a pm failure because the auditing team was not able to meet the scope of the project.

Explains that the case covers an audit on the it department of bluegreen corporation, a real estate developer and resort operator based in florida.
Explains beauchesne had to know the company's it budgeting in a lot more detail than they were used to. the objective was to compare it with other organizations of similar scale.
Explains that although the recommendations and analysis helped sheila beauchesne get the approval for additional workforce, new support and management systems, and improved reporting on the company's it accounts and budget, it was a pm failure because the auditing team was not able to meet the scope of the project.
Opines that gip relied too much on the information that was fed by the bluegreen associates, which resulted in discrepancies.
Analyzes how burrkett relied on averages and generalizations in his it audit, which created misunderstandings. small noticed discrepancies in the average call length to the help desk.
Opines that beauchesne's project was successful in regards to the outcome of the gip auditing team to grow the it department.

Click here to unlock this and over one million essays

Continue Reading Check Writing Quality

Harness the Power of AI to Boost Your Grades!

Haven't found what you were looking for? Talk to me, I can help!

The Sabarnes-Oxley Act and PCAOB
explanatory essay
...ity control can not do enough to ensure that accounting and auditing issues are evaluated with professional skepticism as envisaged in the auditing standards. The inspection team noted that in several cases the engagement teams ' to important areas of the audit consisted of statements or suggestions opinions, findings of inquiries of management or management analyses. The failure of the audited company to appropriately challenge management representations occurred in several areas, even when the firm evaluates the estimates of (a) administration and ( b ) the material misstatements of the financial statements and how users of financial statements interpret these misstatements. Engagement teams involved did not check the representations properly, for instance, reviewing relevant source documentation, consulting external parties, carrying out their own analyses.
In this essay, the author
- Explains that pcaob inspects registered public accounting firms to assess compliance with the sarbanes-oxley act, the rules of the board, and the securities and exchange commission.
- Explains that the act requires the board to carry out these inspections annually to companies that regularly provide audit reports for more than 100 issuers and at least every three years for companies with 100 or less emitters.
- Explains that the pcaob prepares a written report of each inspection and provides, in detail appropriate for the sec and certain state regulatory agencies.
- Explains that pcaob inspects registered public accounting firms to assess compliance with the sarbanes-oxley act, the rules of the board, and the securities and exchange commission.
- Explains that the act requires the board to carry out these inspections annually to companies that regularly provide audit reports for more than 100 issuers and at least every three years for companies with 100 or less emitters.
- Explains that the pcaob prepares a written report of each inspection and provides, in detail appropriate for the sec and certain state regulatory agencies.
- Explains that the inspection team identified matters that it considered to be deficiencies. these included failures by the firm to identify or appropriately address errors in the issuer's application of gaap.
- Explains that the inspection procedure carried out by pcaob included reviews of several audits conducted by the firm. the firm did not identify a material weakness in internal control of the issuer.
- Explains that the firm failed to identify a deviation from the accounting standards that must be identified and addressed before issuing its audit report.
- Explains the firm's failure to take due care with regards to goodwill for impairment, reduction in issuer’s revenue estimate, and liquidity issues to evaluate the effects of these events on its assessment of the potential impairment of goodwill
- Explains that the firm failed to obtain competent evidential matter to support its audit opinion regarding carrying out audit procedures to test the valuation of issuer’s primary assets.
- Explains that the firm failed to perform adequate audit procedures to assess the issuer's claim that losses related to securities were not likely, since the signing procedures were limited to management research.
- Explains that the firm failed to test a significant process used by the issuer to identify impaired inventory and investments.
- Opines that the firm did not take due care and show professional scepticism while performing audit procedures pertaining to a sale of an issuer's property interest.
- Explains that the nature and number of identified deficiencies reported by the investigation team indicate that important issues might exist with regards to emphasis on the critical requirement to exercise professional scepticism and due care while carrying out audit.
- Opines that auditing and accounting issues are evaluated with professional skepticism as envisaged in the audit standards. the audited company failed to appropriately challenge management representations in several areas.
730 words
Read More
Worldcom Scandal Case Study
argumentative essay
However, in terms of an audit firm, it may not pay much attention to the audit procedures since they are always the same and the firm cooperates with its client for several decades. Subsequently, the firm or auditors may hold their client’s shares so that they would like to make an extra income by creating accounting to enhance the financial statements. Finally, when the firm provides other service like taxation and management consultancy to their clients, the auditors may rely too heavily on the other services income and are reluctant to risk losing a client because of unqualified audit opinion although these services, sometimes facilitate the performance of other work by knowing sufficiently about the operations of their
In this essay, the author
- Explains that an independent or external audit is carried out by a neutral third party, such as an accounting firm.
- Analyzes how the worldcom scandal inflated the company's assets by about $11 billion by the end of 2003. it resulted in many negative impacts on its auditors and american economy.
- Explains that anderson's largest client, worldcom, paid a lot for its consulting work instead of the auditing service for more than ten years. andersen claimed that this fault was because they trusted and relied on the management.
- Explains that an independent or external audit is carried out by a neutral third party, such as an accounting firm.
- Analyzes how the worldcom scandal inflated the company's assets by about $11 billion by the end of 2003. it resulted in many negative impacts on its auditors and american economy.
- Explains that anderson's largest client, worldcom, paid a lot for its consulting work instead of the auditing service for more than ten years. andersen claimed that this fault was because they trusted and relied on the management.
- Explains that tesco, the largest retailer in the uk, admitted to overstating its profit forecasts by £250m in 2014. its auditor, pwc, provided this service for more than 30 years.
- Explains that audit results are affected by several factors such as deliberate concealment by executives or problems of sampling proportion. an audit firm may not pay much attention to the audit procedures since they are always the same.
- Concludes that the frauds of worldcom and tesco prove the harm for the independence of external auditing of long-term cooperation with, providing other services for, and owning the shares of their clients.
725 words
Read More
The Ethics for Internal Auditors in Communicating Inappropriate Financial Procedures to Management
explanatory essay
The Internal Auditor position was created, as a result of a rapidly growing American economy, in the mid twenty century. The developing American economy, also known as the golden years, included inappropriate business practice. These practices included, but not limited to, stock manipulations and false business statements. Maintaining an ethical position will avoid the breakdown of organizational progress and the opportunity to correct inappropriate accounting procedures. As the need for proper accounting increased, the demand for internal auditors took place. An internal auditor will review and assure the quality of cash disbursements, cash receipts, corporate governance, ethics, financial reporting controls, fixed assets, project management, sales, and stock controls within an organization (J.L. Vergaert). It is important for the auditors to abide by and ensure the company follows the accounting policies and standards via proper communication and suggestion for correction of any inadequate process found while performing their functions.
In this essay, the author
- Opines that the introduction of sarbanes oxley act and stricter accounting standards have helped mitigate unethical acts. businesses use internal auditors to help protect their financial reputation.
- Explains that the internal auditor position was created as a result of the rapidly growing american economy.
- Explains that the job responsibilities include documenting, notifying management, and suggesting recommendations to correct weak or failing procedures. a finding is a written explanation of errors, weaknesses, deficiencies, adverse conditions, or the need for improvements or changes.
- Opines that the introduction of sarbanes oxley act and stricter accounting standards have helped mitigate unethical acts. businesses use internal auditors to help protect their financial reputation.
- Explains that the internal auditor position was created as a result of the rapidly growing american economy.
- Explains that the job responsibilities include documenting, notifying management, and suggesting recommendations to correct weak or failing procedures. a finding is a written explanation of errors, weaknesses, deficiencies, adverse conditions, or the need for improvements or changes.
- Explains that internal auditors are effective, but there are ethical dilemmas when communicating findings. performance failures, fear of peer reactions, and lack of accounting knowledge are prevalent.
- Explains that communicating findings to management is crucial for the company, stockholder, community, and the internal auditor's reputation.
- Explains that unethical behavior leads to organizational goals not being met and inadequate processes leading to fraud risks. fraud scandals such as adelphia, enron, and worldcom are vivid examples of failures due to poor internal control and fraud.
- Opines that understanding why internal auditors adopt unethical positions is difficult. many assumptions have been made but none yield truth. speculations include fraud, lack of concern, or blackmail.
- Explains that fear of peer reactions is a major ethical dilemma. an internal auditor has dual obligations to an organization.
- Explains that the internal auditor, while reporting, may encounter conflicts between two main authority groups within the organization.
- Explains that an internal auditor's foundation is made of basic accounting functions and past experience. hands-on experience provides a learning depth that books cannot.
- Explains the annual requirements for cpe credits for all active certified public accountants and auditors. they must complete two hours of study group or four hours self-study in professional ethics and conduct and twenty hours relate to fraud detection.
- Opines that a qualified candidate must maintain well-rounded knowledge base for the position. overcoming fear, understanding the organization, and knowing the essentials of the industry is necessary for internal auditors to perform efficiently
- Explains that auditors that know integrity and reputations are necessary to remain active practice ethical behaviors. ethics promote benefits and health to any business and society.
- Explains that the professional ethics and conduct cpe (professional ethics & north carolina cpa laws and rules) fulfills the ethics requirement as stated in 21 ncac08g.0410.
- Analyzes vergaert's sarbanes-oxley and internal audit in the international journal of auditing.
1442 words
Read More
IT Corporate Governance
analytical essay
Corporate governance is the responsibility of an organization’s board of directors (BOD). The internal auditor (IA), the external auditor (EA), and the information technology (IT) auditor all play important roles in the process of corporate governance. By using established frameworks established by the Sarbanes-Oxley Act (SOX), the Integrated Framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and the Control Objectives for Information and related Technology (COBIT), organizations can demonstrate their adherence to regulations and legal requirements. Under SOX, these control frameworks have become the law and are no longer voluntary best practices. The audit process itself assists organizations to achieve proper governance. This paper evaluates the auditors’ role in the governance process and explains how auditors ensure that an organization’s governance system is well controlled and auditable. This paper also describes the likely consequences of the improper implementation of good governance.
In this essay, the author
- Explains that corporate governance is the responsibility of an organization's board of directors. the paper evaluates the auditors' role in the governance process and describes the likely consequences of the improper implementation of good governance.
- Opines that weak corporate governance leads to a loss of investor and consumer confidence. the scandals of enron, global crossing, and world com have led to arthur anderson's downfall.
- Explains that ias, ea, and it auditors play significant roles in the process of corporate governance. companies with strong audit teams have less incidents of fraud.
- Explains that corporate governance is the responsibility of an organization's board of directors. the paper evaluates the auditors' role in the governance process and describes the likely consequences of the improper implementation of good governance.
- Opines that weak corporate governance leads to a loss of investor and consumer confidence. the scandals of enron, global crossing, and world com have led to arthur anderson's downfall.
- Explains that ias, ea, and it auditors play significant roles in the process of corporate governance. companies with strong audit teams have less incidents of fraud.
- Explains that the sarbanes-oxley act, 2002, focuses on the enhancement of corporate governance through improved internal checks and balances.
- Explains how the international professional practices framework defines governance as a combination of processes and structures that the bod implements in order to inform, direct, manage, and monitor activities.
- Argues that organizations with an effective ia function tend to detect fraud more often and report to the audit committees on the bod when a fraud is uncovered.
- Explains the internal audit process and good governance in the post-sarbanes-oxley era: auditors' experiences.
- Explains the nature, impact, and facilitation of external auditor reliance on internal auditing in the academy of accounting and financial studies journal.
1596 words
Read More
External Audit Paper
explanatory essay
On the other hand, an external audit is controlled by outside agency, such as the Office of the Inspector General. Healthcare organizations should respond to external investigators’ request punctually. Organizations need to develop and follow the policies and procedures for response to external audits in order to protect the patients’ right of confidentiality. The very first step that organizations must practice is identifying the origins and authorities of the individual and organization that issue the request. They can verify the identities by various methods, such as: checking information on the states’ website and calling states’ offices for Medicare and insurances companies. Once identities are confirmed, organizations can proceed to the
In this essay, the author
- Explains that an external audit is controlled by the office of the inspector general. healthcare organizations should respond to external investigators' requests punctually.
- Explains the purpose of external audits: to retrieve the overpayment, the auditors require the organization to repay the funds and fines associated with the misconducts.
- Explains that an external audit is controlled by the office of the inspector general. healthcare organizations should respond to external investigators' requests punctually.
- Explains the purpose of external audits: to retrieve the overpayment, the auditors require the organization to repay the funds and fines associated with the misconducts.
655 words
Read More
Bullseye Audit: Case Study
explanatory essay
I have taken the time to review last year’s audit and made note of the minor problems dealing with human error and also noted that correction have been made. Because of this problem I would like to start my review here to test the controls for eliminating human errors. The IT specialist will be reviewing the internal controls of your electronic systems and
In this essay, the author
- Explains that they feel confident that bullseye audit will be a smooth, efficient audit with four additional colleagues and an it professional to assist them.
- Explains that their first step is to send their four colleagues to various stores to review and if all possible participate in the physical inventory, along with reviewing the process of deposits and withdrawals, everyday ordering and receipt of goods and services. locations will be determined by material misstatements to the financial statements associated with their location.
- Explains that while their audit team is out, they will be evaluating the internal controls at corporate office reviewing past financial statements and comparing to current, along with any legal process that have or have not been established.
- Explains that they feel confident that bullseye audit will be a smooth, efficient audit with four additional colleagues and an it professional to assist them.
- Explains that their first step is to send their four colleagues to various stores to review and if all possible participate in the physical inventory, along with reviewing the process of deposits and withdrawals, everyday ordering and receipt of goods and services. locations will be determined by material misstatements to the financial statements associated with their location.
- Explains that while their audit team is out, they will be evaluating the internal controls at corporate office reviewing past financial statements and comparing to current, along with any legal process that have or have not been established.
- Explains that the it specialist will take a random sampling of automated systems financial based on previous benchmarks to verify that they are still good. the report will show the various test ran along with extent of application control that has been defined within the program.
- Opines that management should request any verifiable changes to current system, such as upgrades, changes in accounting software or procedures, change of personnel access, and maintenance done to system since last audit.
- Opines that internal audits will need to see and verify reports submitted with the lesson learned and correction done to achieve compliance with control over financial reports (icfr) and sec regulation.
- Explains that the audit team found the corrective actions to be appropriate and justified in eliminating human error by implementing additional checks and balances within the manual process.
- Explains that the prestigious certified public accounting firm performed an independent audit for bullseye board of directors and shareholders. the audit and accompanying consolidated balance sheets were completed at the end of fiscal year 2014.
- Explains that the firm conducted the audit in accordance with pcaob standards of the united states, which require the plan and performance of an audit for reasonable assurance that those financial statements are free of material misstatements.
- Explains that internal controls over financial reporting may not prevent or detect misstatements due to its limitations.
- Opines that bullseye's financial statements present fair and material respects of its operations and subsidiary branches as of fy 2014 based on control criteria set by the company and the audit team.
- Refers to aicpa's performing an audit of internal control in an integrated audit.
1026 words
Read More
Pcb Case Study Summary
opinion essay
The need for expansion in global business is a necessity for big companies, and many Canadian companies are expanding their operation into overseas markets. This is a new challenge to the performance of high quality auditing, because new transaction will be made in these markets which are not necessarily follow Canadian GAAP standards for purpose of reporting. The auditors must ensure they understand business standards and regulatory that is applicable to entities that now form a part of consolidated financial statement. The auditors need to understand business structures which exist in foreign countries.
In this essay, the author
- Explains that there are many challenges in current audit environment from reading of pcab 2013 public report.
- Explains the need for expansion in global business is a necessity for big companies, and many canadian companies are expanding their operations into overseas markets.
- Explains that the quality of audit is not just from hard work of auditor; it starts from quality information provided by management. an effective accounting and information system can produce a high-quality financial statement.
- Explains that there are many challenges in current audit environment from reading of pcab 2013 public report.
- Explains the need for expansion in global business is a necessity for big companies, and many canadian companies are expanding their operations into overseas markets.
- Explains that the quality of audit is not just from hard work of auditor; it starts from quality information provided by management. an effective accounting and information system can produce a high-quality financial statement.
- Explains that foreign companies may follow different accounting standards than parent canadian companies, making it more challenging to ensure the accuracy of consolidated financial statements and disclosure of notes.
- Opines that auditors should challenge management for what they tell them and not just accept management's views without any arguments or challenges.
- Explains that senior members of engagement team are rotated frequently to avoid complacency or threat of familiarity.
- Opines that engagement teams should be less accepting and more challenging in their approach to an audit.
- Explains that it is important to test internal controls, in many cases audit fails due to lack of identifying the key control that must be tested by engagement team.
- Explains that firms should not rely on internal controls when they have smaller reporting issues. firms often fail to identify and test controls that mitigate audit risk at assertion level.
- Opines that cpab believes that more transparency with auditor reporting is needed. auditors need to share information in order to provide bigger value to their audit of financial statements.
- Opines that it is important to disclose key/critical audit matters to audit report. this will enhance audit quality and improve the quality of financial statement.
- Recommends not including going concern in auditor statement if a material uncertainty does not exist.
- Opines that it is important to disclose other auditor's involvement, other than the firm, in the auditing report and to what extent.
- Opines that having an international standard for auditor reporting will reduce investor confusion since many audit reports are being read globally.
- Explains that cpab found that auditors did not follow properly canadian procedures due to lack of understanding the nature of business in foreign jurisdictions and professional skepticism.
- Explains that auditors relied only on management's information to prove ownership of assets.
- Explains that auditing firms rely on component auditors with operations around the world to perform large parts of engagements, whereas foreign audits are not tested. firms need to have access to working papers and knowledge of customs and business practices.
- Explains that firms must always audit fair value for the purpose of determining possible impairment of assets.
- Recommends mandatory rotation and tendering after certain time of period to assure quality of audit. this reduces the risk of familiarity and self-interest between the auditors and their clients.
961 words
Read More
Chick-Fil-A Case Study
explanatory essay
Even though before this time period a company’s auditors were required to maintain an independent view since they were suppose to act as a protector to all end users it was not always the case. An environment was created with a Utilitarian approach that said company’s can offer package services that offer consulting services why at the same time audit the company’s financial statements. But when issue arose it became difficult to jeopardize the superior revenue that was obtained through consulting
In this essay, the author
- Explains that chick - fil a's corporate purpose is to glorify god by being a faithful steward of all that is entrusted to us. salesmanship is the gentle art of letting customers have it your way.
- Explains that when god is at the center of the organization and his principles are instituted throughout the company, it truly helps and organization have a sound culture.
- Explains how the government clamped down on public company financial reporting as sarbanes-oxley emerged. cpa firms were required to split off key consulting services deemed to conflict with auditor independence issues.
- Explains that chick - fil a's corporate purpose is to glorify god by being a faithful steward of all that is entrusted to us. salesmanship is the gentle art of letting customers have it your way.
- Explains that when god is at the center of the organization and his principles are instituted throughout the company, it truly helps and organization have a sound culture.
- Explains how the government clamped down on public company financial reporting as sarbanes-oxley emerged. cpa firms were required to split off key consulting services deemed to conflict with auditor independence issues.
- Explains that with the increase in regulations coming down from the public company accounting oversight board (pcaob) and the aicpa, a more absolute ethical approach is beginning to develop.
- Explains that the aicpa updated the code of professional conduct to be solely viewed online. consistency is a key in strong and viable ethic systems.
530 words
Read More
Pcob Fraud Case
opinion essay
The inspection by the PCAOB revealed many deficiencies with KPMG LLP. First, the Firm assumed that the controls over revenue and inventory were the same at all of the client’s locations, but they ended up being different (5). The Firm did not use enough professional skepticism in its decision to test less locations, since they thought all of the locations would be the same. This deficiency related to the audit of internal control. If the controls were different then items were reported differently, which goes against the principle of consistency.
In this essay, the author
- Explains that the pcaob inspection revealed many deficiencies with kpmg llp. the firm assumed that controls over revenue and inventory were the same at all of the client’s locations, but they ended up being different.
- Explains that the firm did not perform sufficient substantive procedures to test inventory and revenue. the pcaob was concerned with the effectiveness of internal control.
- Opines that the firm should have recalculated the value of the foreign deferred tax assets to ensure the controls were working correctly.
- Explains that the pcaob inspection revealed many deficiencies with kpmg llp. the firm assumed that controls over revenue and inventory were the same at all of the client’s locations, but they ended up being different.
- Explains that the firm did not perform sufficient substantive procedures to test inventory and revenue. the pcaob was concerned with the effectiveness of internal control.
- Opines that the firm should have recalculated the value of the foreign deferred tax assets to ensure the controls were working correctly.
- Explains that the firm identified a fraud risk with the valuation of financial instruments, but did not test any controls that reviewed it. the auditors should have brought in experts to determine proper valuation.
- Opines that kpmg responded to the pcaob's inspection in a professional matter. they agreed with the findings and took the appropriate action to comply with standards.
- Explains that the inspection by the pcaob revealed many deficiencies of bdo usa, llp.
- Explains that the firm failed with its consideration of materiality in planning an audit. there was a deficient amount of confirmation from third parties about loans receivable balances and investments as the sample size was too small.
- Opines that the firm failed to perform sufficient procedures related to the allowance for loan losses, and the firm should have recalculated these results to test the control’s mathematical accuracy.
- Explains that the firm failed to perform sufficient procedures related to inventory. the firm used insufficient procedures to test existence and the controls of existence concerning inventory, and needed to use confirmation to address the issue.
- Explains that the pcaob concerned about the effectiveness of internal controls since the auditor failed to gather evidence that inventory was frequently counted. auditors cannot rely on inquiry as an adequate control procedure.
- Opines that bdo responded to the pcaob's inspection in a professional matter. they supported their commitment to improving the quality of audits and quality control.
- Explains that the inspection of pricewaterhouse coopers llp revealed numerous deficiencies. the firm's procedures failed to evaluate the reasonableness of the cash-flow forecasts and did not indicate if the differences in actual vs projected revenue required adjustments.
- Opines that the firm should have used more analytical procedures such as trend analysis or ratio analysis to aid with evaluating reasonableness.
- Opines that the issuer's assets included several customer-relationship intangible assets, which were based on customer contracts. the firm’s testing to ensure accurate useful life and disclosure were inaccurate.
- Opines that the firm should have tested the controls relating to the useful life of intangible assets and recalculated the amortization schedule.
- Analyzes how pricewaterhouse coopers responded to the pcaob's report in a professional matter. they agreed with the board because they addressed each of the issues raised by the board.
- Opines that the pcaob inspection of deloitte & touche revealed many deficiencies. the firm tested two controls of a poc revenue category that reviewed the estimated costs to complete the project.
- Explains that there was no proof on how the revenue was calculated, and internal controls were not checked to prevent completeness and accuracy issues.
- Opines that the firm failed to evaluate the reasonableness of the issuer reducing the estimated useful lives of certain plant and equipment to be consistent with the revised cost recovery period.
- Explains that the firm failed to evaluate if the disclosures related to the agreement were in conformity with gaap. the pcaob was concerned with material misstatement.
- Analyzes how deloitte & touche responded to the pcaob's report in a professional matter. they agreed with the findings of the report and took appropriate action to correct them.
1663 words
Read More
Information Technology and The Auditing Professional: The Statements of Auditing Standards No. 109
explanatory essay
Today’s auditors must possess additional skills in order to perform their work. As more and more businesses use information technologies (IT) and set up an information system (IS) to process all their data, auditors must get acquainted with essential aspects of their clients’ information systems and also make use of information technology in order to perform their duties. In this essay, we will attempt to answer the following two questions: 1) “What aspects of clients' accounting information systems must be understood by auditing professionals?” and 2) “How should auditing professionals use their firm's information technology in performing their work?”
In this essay, the author
- Explains that auditors must be familiar with essential aspects of their clients' accounting information systems and make use of information technology in order to perform their duties.
- Explains that auditors must understand that many business entities are in the process of going "paperless", that is keeping all records in electronic form only.
- Explains that the auditor must know who has access and what type of access is authorized, especially because this affects internal control issues.
- Explains that auditors must be familiar with essential aspects of their clients' accounting information systems and make use of information technology in order to perform their duties.
- Explains that auditors must understand that many business entities are in the process of going "paperless", that is keeping all records in electronic form only.
- Explains that the auditor must know who has access and what type of access is authorized, especially because this affects internal control issues.
- Explains that the auditor must understand that an information system is as efficient as the people who operate it. if the personnel operating the is is not well-informed and sufficiently trained, mistakes are more likely.
- Explains that the auditor must be aware of any changes to the information system used by the client and how those changes have affected the process of financial reporting.
- States that auditors should pay close attention to how the information system used by the entity treats different types of transactions, whether the procedures are automated or manual, keeping of accounting records, preparation of financial statements.
- Explains that auditors must understand the general controls that contribute to the proper functioning of the client’s information system. any malfunctioning of these controls can cause issues with the processing of information for financial reporting purposes.
- Opines that the auditor should inquire about the processes through which management receives the information on which it bases its opinion.
- Opines that auditors should be careful when analyzing information generated by information technologies as it may not always be accurate.
- Opines that auditors should assess management's focus on handling security risks and making sure the personnel using information technologies has correct training and is granted limited access to the information system.
- Opines that computer-assisted audit techniques may be more appropriate, especially when the records used to generate financial reports only exist in electronic form.
- Explains au section 314. understanding the entity and its environment and assessing the risks of material misstatement (supersedes sas no. 55).
- Opines that the auditor's main concern should be whether management ensures the it systems protect the data and preserve its truth.
- Explains that au section 314. understanding the entity and its environment and assessing the risks of material misstatement supersedes sas no. 55.
877 words
Read More
Company Internal Report
opinion essay
With reference to the auditing results of the client’s firm the company needs to put in place changes required to streamline the company performance if needed. This should be done as the first thing so that the plans put in place do not fail as a result of using bad systems, inefficient managers, poor organizational structures and poor employee relationship with the management.
In this essay, the author
- Explains that many companies have different targets and objectives but at the end of the day they are aimed at profit maximization, which requires strategizing and planning by the management.
- Explains that a client's firm needs to put in place changes to streamline the company performance if needed. bad systems, inefficient managers, poor organizational structures, and poor employee relationship with the management should be avoided.
- Explains that the flow diagram below is a simplified model showing different actions, recommendations and opportunities identified by the consultant firm. employee relationship with the management should be close and working conditions conducive for maximum performance.
- Explains that many companies have different targets and objectives but at the end of the day they are aimed at profit maximization, which requires strategizing and planning by the management.
- Explains that a client's firm needs to put in place changes to streamline the company performance if needed. bad systems, inefficient managers, poor organizational structures, and poor employee relationship with the management should be avoided.
- Explains that the flow diagram below is a simplified model showing different actions, recommendations and opportunities identified by the consultant firm. employee relationship with the management should be close and working conditions conducive for maximum performance.
- Explains that customer service trends have developed in recent years, such as respect, nice treatment, and special attention. advanced technology has also played a greater role in this.
- Recommends companies make use of the internet to attend to customers both through email and online, and develop management systems where information flow in the company is properly streamlined through intranet and extranets.
- Explains that some banks have liaised with mobile service providers where their customers can access their accounts using their phones. increased literacy in computer use has also been experienced.
- Explains how personalization has become powerful in the internet communication, and how satisfied customers are now a booster for the company.
- Analyzes how the increase in international trade has affected customer care. importation of high quality products has made it necessary for local industries to listen to their customers, provide better products and services, and improve their public relations.
- Explains that increased competition has influenced customer service, and that firms are investing in customer care through training of their managers and subordinate staff who are in frequent contact with customers.
- Explains that if management performance is poor, restructuring should be done or training could be considered to ensure management is perfect. employee commitment is determined by management.
- Opines that customer feedback is a key thing to be observed to ensure minimum complaints and to rectify all areas requiring corrections. customer care desks and customer care managers must be there to monitor complaints.
- Explains that company growth opportunities include establishing a wide market share (market penetration). market share is one of the most popular means of quantifying success.
- Explains the strategy of introducing entry market barriers to reduce market entry by competitors. this is done to prevent and eliminate unnecessary competition to dominate the market and amass maximum profits.
- Explains that customer loyalty is enhanced by understanding the needs of the customers, ensuring you do everything to ensure they are delighted and they can trust your company.
- Explains that total quality management ensures continuous improvement which in return facilitates consideration by the company by consumers. customer care desks are necessary in the current business to ensure customer complaints are attended to and prevent any forms of dissatisfaction.
- Opines that companies can develop a new market through exportation and introducing existing products to new markets. companies can diversify through discovering new emerging markets and introduce new services and goods.
- Explains that a performance review will be taken to detect any problems affecting the growth of the company.
- Describes the sources of reference lists, such as advameg inc, market share, gaebler ventures, business strategy, low budget marketing, and methods.
2005 words
Read More