a.
Introduction: Audit committee is a sub-committee of board of directors which is responsible for providing an oversight to the financial reporting process. Audit committee acts as an intermediary between external auditors of the company and the management to resolve areas of conflict amongst them.
To explain: The changes in audit committee membership and duties mandated by the Sarbanes Oxley Act. Also, explained the increased responsibilities of audit committee due to Sarbanes Oxley Act.
b.
Introduction: Audit committee is a sub-committee of board of directors which is responsible for providing an oversight to the financial reporting process. Audit committee acts as an intermediary between external auditors of the company and the management to resolve areas of conflict amongst them.
To examine: the implications of ownership over relationship with external auditor on auditor and audit committee.
c.
Introduction: Audit committee is a sub-committee of board of directors which is responsible for providing an oversight to the financial reporting process. Audit committee acts as an intermediary between external auditors of the company and the management to resolve areas of conflict amongst them.
To explain: The responsibility of audit committee in case of a complex transaction not involving any reporting issue. Also, explain the skills or expertise required in such type of transaction.
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Auditing: A Risk Based-Approach to Conducting a Quality Audit
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- Audit committees have an essential role to play in ensuring the integrity and transparency of corporate reporting. The external auditor will normally report to the audit committee on all the following matters except: Select one: a.Detected frauds. b.Future staff requirements of the audit firm. c.Potential breach of Corporation Act 2001. d.The management responsibility in presenting annual financial reports.arrow_forwardBriefly explain how an Independent and competent audit committee improves corporate governance.arrow_forwardAn organization’s board of directors has recently experienced a substantial change in leadership. The new members of the board have demanded an external audit for internal control and information assurance. What should the president or leader of the organization be prepared to provide to ensure the board is comfortable with the audit results?arrow_forward
- A public sector organisation has an Internal Audit function and an Audit Report Implementation Committee (ARIC) of the Board of Directors. The Internal Audit function does not have an Internal Audit Charter. Before the PFM Act, 2016 Act 921 was enacted,TheARIC has three members, the Managing Director of the organisation and two other directors, a legal practitioner and a retired career diplomat. Required: Identify the need for and state TWO of the major issues the Internal Audit Charter must cover in a public sector organisation.arrow_forwardWhich of the following is NOT a major component of the Sarbanes-Oxley Act? Executive responsibility for accurate financial reporting. Accounting regulation. Mandating external financial audits for all companies. Formation of an audit committee.arrow_forwardFrom the article below, 1) What caused the SEC to question EY's independence? 2). Explain the findings in the history for EY's other instances where its independence was called into question. Accounting reform occurred after significant corporate misconduct was discovered in the early 1980s. Some of the reform sought to require public companies to put the hiring and pay of their auditors in the hands of an independent audit board committee. There has been concern that management still has significant influence on the evaluation and final decisions. Phillip Lamoreaux, an accounting professor at Arizona State University, conducted a study of more than 2,000 auditor changes in publicly traded companies. He found that companies whose top executives had worked with a Big Four accounting firm were twice as likely to select that firm. Many executives make their way into corporate America through the largest accounting firms in the world. A chief accountant in the Securities and Exchange…arrow_forward
- Which of the following statements is correct? A.The external auditor is responsible for the preperation of a company's financial statements. B.Audit commitees are now compulsory for the top 500 companies C.An audit commitee may be responsible for reviewing policies on internal control procedures D.Corporate governance can provide assurances that management is accountable for the actionsarrow_forward**Objective Question:** Which type of audit primarily focuses on ensuring that an organization complies with relevant laws, regulations, and internal policies? A) External audit B) Tax audit C) Compliance audit D) Forensic auditarrow_forwardExplain how the financial internal audit process contributes to effective risk management, meeting requirements of the Corporations Act 2001 (Cth). (50 -100 words please!)arrow_forward
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