ACC 640 MILESTONE 3

Question 18 According to the PCAOB, during the audit of internal controls for an issuer (public company), the ultimate objective of testing the design effectiveness of internal controls is to:     Determine whether the company's controls are processing data effectively.     Determine whether the company's controls will satisfy control objectives and prevent or detect errors or fraud that could result in material misstatements to the financial statements.     Determine that the company's employees are processing the controls according to policy and procedures manuals at the company.     None of the answers provided are correct..

audit please quickly i will give you a thumb!!

Forensic Accounting: Assurance Engagement 2: Net Worth Analysis. You can use the computer-based Electronic Workpapers on the textbook website to prepare the net worth analysis required in this problem.Net worth analysis is performed when fraud has been discovered or is strongly suspected and the information to calculate a suspect’s net worth can be obtained (e.g., asset and liability records, bank accounts). The procedure used is to calculate the person’s change in net worth (excluding changes in market values of assets) and to identify the known sourcesof funds to finance the changes. Any difference between the change in net worth and the known sources of funds is called funds from unknown sources, which might include illgotten gains.Nero has worked for Bonne Consulting Group (BCG) as the executive secretary for administration for nearly 10 years. Her dedication has earned her a reputation as an outstanding employee and has resulted in increasing responsibilities. Nero is also a…

__________are the systems used by an organization to manage risk and diminish the occurrence of fraud.      Internal Controls      assessments      Operational activities      informational programs

Case Study: Auditing in the Era of Big Data Introduction: The advent of big data has revolutionized various industries, including auditing. This case study explores how a global audit firm, Datalnsight Auditors, navigated the challenges and opportunities presented by big data in the auditing process. Context: Datalnsight Auditors recognized the potential of leveraging big data to enhance the effectiveness and efficiency of their audit procedures. The firm was engaged in auditing a multinational e- commerce giant, E-Global Mart, known for its vast transactional data and intricate business operations. Step 1: Harnessing Big Data Analytics To capitalize on the vast amounts of data generated by E-Global Mart, DataInsight Auditors implemented advanced big data analytics tools. These tools enabled the auditors to analyze large datasets in real-time, identifying patterns, anomalies, and trends that traditional audit methods might overlook. The use of predictive analytics enhanced risk…

Forensic Accounting: Assurance Engagement 1: Expenditure Analysis. Expenditureanalysis is used when fraud has been discovered or strongly suspected and the informationto calculate a suspect’s income and expenditures can be obtained (e.g., asset and liabilityrecords, bank accounts). Expenditure analysis consists of establishing the suspect’s knownexpenditures for all purposes for the relevant period, subtracting all known sources of funds(e.g., wages, gifts, inheritances, bank balances), and identifying the difference as “expenditures financed by unknown sources of income.”The law firm of Gleckel and Morris has hired you. The lawyers have been retained byBlade Manufacturing Company in a case involving a suspected kickback by a purchasingemployee, E. J. Cunningham. Cunningham is suspected of taking kickbacks from MasonVarner, a salesman for Tanco Metals. Cunningham has denied the charges, but LanierGleckel, the lawyer in charge of the case, is convinced the kickbacks have…

Internal Controls  Homer Simpson’s first assignment as an internal auditor for Springfield Services Company involved an audit of the data processing centre controls.  The Data Processing Manager, Mr. Burns, gave him a tour of the facilities.  Mr. Burns explained that the facilities were located between the accounting and the personnel departments because of the high volume of transactions generated by these two areas.   "Our doors are always open as a matter of policy.  This way, users feel involved and committed to the system," he told Homer as they entered the glass doors of the facility.  Homer was introduced to a programmer and a systems analyst who were reviewing and approving results of a program they had written together.  The computer tape files were stored in the centre of the room on open shelves for ease of access to both operators and programmers.  The lower part of the shelving was a locked storage cabinet.  Mr. Burns showed Homer the back-up copies of tapes stored there…

ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements, describes the responsibilities of both management and the auditor with regard to preventing and detecting fraud. 1. Distinguish between fraud and error. 2. With an example each, distinguish between fraudulent financial reporting and misappropriation of assets. 3. Explain the responsibilities of both management and auditors with regard to the prevention and detection of fraud.

14-22 (Objectives 14-2, 14-3) The following questions deal with internal control and audit evidence in the sales and collection cycle. Choose the best response. Tracing shipping documents to sales invoices provides evidence that sales billed to customers were actually shipped. shipments to customers were properly invoiced. Shipments to customers were recorded as sales. All goods ordered by customers were shipped. Which of the following procedures most likely represents an internal control designed to reduce the risk of errors in the billing process? Comparing control totals for shipping documents with corresponding totals for sales invoices. Matching receiving documents with approved sales orders before invoice preparation. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger. Requiring customers that purchase on account to be approved by the credit department. An auditor wishes to test the completeness assertion for sales. Which of the…

14-22 (Objectives 14-2, 14-3) The following questions deal with internal control and audit evidence in the sales and collection cycle. Choose the best response. Tracing shipping documents to sales invoices provides evidence that sales billed to customers were actually shipped. shipments to customers were properly invoiced. Shipments to customers were recorded as sales. All goods ordered by customers were shipped. Which of the following procedures most likely represents an internal control designed to reduce the risk of errors in the billing process? Comparing control totals for shipping documents with corresponding totals for sales invoices. Matching receiving documents with approved sales orders before invoice preparation. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger. Requiring customers that purchase on account to be approved by the credit department.