Give me six detailed paragraphs on why the quality of audit is declining in the United States
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Give me six detailed paragraphs on why the quality of audit is declining in the United States
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- whats the answer in question 1?Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement?a. Staff will need to be rescheduled to cover this new client.b. There will be a client-imposed scope limitation.c. The firm will have to hire a specialist in one audit area.d. The client’s financial reporting system has been in place for 10 years.
- whats the answer in the 2nd number?The audit report was recently expanded from the previous six paragraph format. The new format includes a section on key audit matters. This was an attempt to narrow the expectations gap. Discuss the expectations gap and whether you think the new audit report is likely to have any significant effect.Recently at a press conference, Network of Critical Governance (NCG), a collation of civil society organisation (CSOs) in governance and accountability, has described the fiscal condition of the country as abysmal and cautioned that if care is not taken the country will fall into a “bottomless pit”. However, NCG did not provide any evidence to support their claims and prediction. They only directed the press and the public to go and fetch the fiscal data of the year and find out for themselves. After the press conferences, a leading Media House in the country has downloaded the fiscal data of the year 2020 from the website of government and posted it on the social media for everyone to see. The data posted, which is verified to be true, is as follows: GH¢’million Direct taxes 35,000 Indirect taxes…
- Recently at a press conference, Network of Critical Governance (NCG), a collation of civil society organisation (CSOs) in governance and accountability, has described the fiscal condition of the country as abysmal and cautioned that if care is not taken the country will fall into a “bottomless pit”. However, NCG did not provide any evidence to support their claims and prediction. They only directed the press and the public to go and fetch the fiscal data of the year and find out for themselves. After the press conferences, a leading Media House in the country has downloaded the fiscal data of the year 2020 from the website of government and posted it on the social media for everyone to see. The data posted, which is verified to be true, is as follows: GH¢’million Direct taxes 35,000 Indirect taxes…Which of the following would increase the rate of deviation from last year's audit? client's computer system has been in place for the past four years client has changed its internal control procedures client has same staff as last year client's accounting policies have remained unchanged from previous yearsShould U.S. public accounting firms try to audit internationally in cultures they may not understand? If so, how can they maintain quality audits?
- Which of the following circumstances would most likely pose the greatest risk inaccepting a new audit engagement?(1) Staff will need to be rescheduled to cover this new client.(2) There will be a client-imposed scope limitation.(3) The firm will have to hire a specialist in one audit area.(4) The client’s financial reporting system has been in place for 10 yearsAuditors have been blamed for the ongoing financial sector challenges in Ghana. Some critics suggest that audit practices are inherently rigid, and the methods too obscure to have mitigated these failures. Others argue that auditors are unfairly criticized. Where do you stand? Justify your answer with sound reasoning. (2500 - 3000 words needed).Q2. Consult Paragraphs 3-6 of Quality Control Standard No. 20 (QC 20). Considering the example in the Waste Management case, please explain why a review by the practice director and audit division head is important in the operations of a CPA firm. In your opinion, was this review effective at Waste Management? Why or why not? Q3. Consult Paragraph 7 of PCAOB Auditing Standard No. 13. Do you believe that Andersen’s final decision regarding the PAJE’s was appropriate, under the circumstances? Would your opinion change if you knew that all of the adjustments were based on subjective differences (such as a difference in the estimate of the allowance for doubtful accounts), as compared to objective differences (such as a difference in the account receivable balance of their biggest customer)? Q4. Refer to Sections 203 and 206 of SARBOX. How would these sections of the law have impacted the Waste Management audit? Do you believe that these sections were needed? Why or why not?