The Trolley Dodgers 1. The key audit balance sheet account is Accrued Wages and the key audit income statement account is Wage/Salary expense. There are three key audit objectives for a client’s payroll function. Below are these three objectives and comments on objectives related to tests of controls and substantive audit procedures. I. Occurrence II. Completeness III. Accuracy Objective Test of Controls Substantive Audit Procedures Occurrence: The Dodgers should only record payroll payments for existing employees. Evaluate the internal control to confirm that the payroll payments are for existing employees. This test should include examining every employee’s time card as well as their personnel files. If there is an employee time card for an employee who does not have a personnel file, or if their file indicates that they are no longer an employee of the company, then that indicates that there is an issue and more investigating should be conducted. There needs to be a test to verify that the payroll amounts were actually recorded into the general ledger as well as the journal. There should be a numbering system in place that links all related entries. Completeness: The Dodgers must record all payroll transactions. This control is used to ensure that every existing payroll is recorded. This control can also test to ensure that the pre-numbered payroll checks are all accounted for. The Dodgers can compare the company’s payroll records to the bank statement. This will check for any unmatched dollar amounts. Accuracy: The Dodgers must ensure that transactions are properly valued. This test should check for a few different things. It should verify that the hourly rate is correct, the number of hours worked matches the number... ... middle of paper ... ...lse would have had to periodically review Campos’ work. Another simple procedure that could have been used is having a surprise distribution of payroll for selected departments. Instead of the employees receiving direct deposit for that pay period, the company could have printed out every employee’s check from that department for that pay period. This could have led to unclaimed checks which would have led to the discovery of fraudulent employees. Also, having analytical procedures to measure the reasonableness of the Dodgers payroll expense by department might have discovered that certain departments had payroll expenditures that were clearly too excessive. From a company standpoint, having a better budget would have also helped to discover this scheme. There should have been a labor budget which would have helped call attention to the excessive payroll amounts.
...not have occurred (again the out-dated accounting system shortfall). Further, analytical procedures could be used to compare budgets / forecasts to actual results and variations could be investigated (i.e. expenses higher than anticipated or profit less than anticipated). The following is article by Tracy Coenen is more critical of KOSS' management than of the auditor, Grant Thorton. She contends that while auditor should have caught this fraud, management is more to blame because of not addressing internal control issues. http://www.sequenceinc.com/fraudfiles/2010/01/koss-corp-fraud-defending-grant-thornton-no/
In general, we are morally permitted to turn the trolley in order to save five, but kill one. On the other hand, we are not permitted to transplant the organs of one healthy person in order to save five who will otherwise die. According to consequentialists, there is no moral difference between “Trolley” and “Transplant.” Consequentialists believe that “consequences are the only things of moral relevance” (Quinn 287). Actually, the consequences of both cases are either saving the lives of five or the life of one. However, our moral judgement leads that the case of “Trolley” is morally permitted, but “Transplant” isn’t permitted. Why do we think that they are different? I think that the difference between the two cases come from the doctrine
...everal employees before they are considered correct to submit into accounting systems. All transactions will require a series of reviews and dual sign off before final approval.
Between 2000 and 2005 several similar problems resurfaced which needed to be addressed soon. Bent was forced to lay off 46 of his 255 employees. For the rest of the employees that stayed, they noticed that they had not received their Scanlon bonus in some months on their paycheck. The higher-level authority and hardworking employees began to lose trust among each other and resent each other because of the unfairness of the bonus calculation. The balance between the employees and managers was misunderstood. The employees felt like the managers bonus for the managers shouldn’t be equal or more
The software won't have the security that your payroll service does. They understand the need for securing your data, so they'll have the latest technology to keep your information safe. They'll store it on multiple servers and have secure protection in place, so that your information can't be hacked by exterior forces.
To counter this problem, computer assisted audit techniques have been developed. These systems are able to provide a more in depth analysis of the utilized billing systems. Computer assisted audit techniques also enable highly efficient assessment of transactions. By utilizing this system, an auditor could gain a clearer picture of the revenue reporting mechanisms that are being utilized by the business office. Once the information is derived, however, its interpretation, while simpler, will still require an individual that is knowledgeable in regard to the revenue cycle
Cross-culturally there are many difference between moral values. The extremes of these moral differences include cannibalism or incest which were normal in some cultures, closer to home there are value differences between liberals and conservatives or between the South and the West, any two cultures will have different ideas of moral values. There are three potential sources to base moral values on, faith, emotion, or reason. Individuals all have different ideas about what is moral and they conflict with one another. If morals were based solely reason everyone would eventually reach the same moral ground. If they could be based only on reason, it would mean universal morals. However, based on how we determine our morals now, where
The second step is entering the transactions of the period in appropriate journals. This step consists of taking the journal entries, assigning each to an asset, liability, equity, expense or revenue account(s) to debit and credit. This can be done by almost anyone. I have had jobs where the bookkeeper does the journal entries and figures out which accounts are affected. I have also had jobs where anyone from a receptionist to a staff accountant does this step. If the person doing the journal entries does not have a background in accounting, or is unfamiliar with which accounts are affected, the person submitting the source documents will write down which accounts should be debited and which should be credited. This practice makes doing the journal entries little more than data entry, which can be done by nearly every employee.
The Bystander at the Switch case is a fundamental part of Thomson’s argument in “Trolley Problem.” The basis of her paper is to explain the moral difference between this case, which she deems morally permissible (1398), and the Transplant case, which she deems morally impermissible (1396). In the Bystander at the Switch case, a bystander sees a trolley hurtling towards five workers on the track and has the option of throwing a switch to divert the trolley’s path towards only one worker. Thomson finds the Bystander at the Switch case permissible under two conditions:
The definition of key terms that follow are commonly used terms by accounting professionals and experts in the accounting industry that are not commonly known, used, and/or understood by the general populace. Some of the following definitions used by the accounting industry, in particular auditors, hold different meanings and thus are clarified below, as related to their application in this study.
Trolley Investigation Choosing a Variable Before I begin the investigation, I must first decide which variable I should investigate. Variables can be divided into 2 major groups: dependant variables and independent variables. In measuring the behaviour of a trolley the dependant variable is speed. This is because the speed will change when other variables are changed. An independent variable is a variable which cannot be affected by other variables.
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
Overall, the company is having ineffective controls regarding different departments and in the whole organization. An effective internal audit department should be established within the organization which should test the effectiveness of these controls on regular basis and make it sure that all controls are working effectively and efficiently with the different departments of the organization. Also the Internal auditor should implement the most effective processes and measures to prevent and detect the fraud, corruption and non compliance with the laws and regulations in the organization. Establishment of internal audit committee would be helpful in this regard which comprises of executive and non executive directors.
The Resources Group, 2012, Components Of A Computerized Accounting System. Available at: . [Accessed 12 November 2013]
The audit has three different types, operational audit, compliance audit and financial statement audit. The operational audit is to evaluate whether the firms’ operation procedures and methods are efficiency and effectiveness. Efficiency and effectiveness of operations are more difficult to objectively evaluate than standard. The purpose of a compliance audit is to determine whether the audit is following specific process, regulations. A significant portion of the compliance audit work is employed by the organizational invited auditors by themselves. A financial statement audit is conducted to determine whether the overall financial statements are stated in accordance with specified criteria. Normally, the criteria are generally accepted accounting