Search results

1 – 10 of over 11000
Book part
Publication date: 16 October 2020

Dawn Anderson and Donald (Don) Wengler

Auditing textbooks include summary level coverage of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, but textbook coverage is…

Abstract

Auditing textbooks include summary level coverage of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, but textbook coverage is too brief to support a strong understanding of auditor independence. Independence rules have the force of professional law for the independent auditor (PCAOB, 2015). Threats to firm independence can arise from events and circumstances such as investments in the client, loans from the client, past-due fees, contingent fees, deposits in the client, gifts and job offers. Student test results from a five-year rotation of alternative auditor independence lecture support materials demonstrate that using the actual AICPA Code of Professional Conduct reduces student performance. However, this drag on student performance was mostly offset by the positive impacts of simultaneous use of an independence decision tree developed for this chapter and tested as a teaching material for classrooms use.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-83867-669-8

Keywords

Book part
Publication date: 28 November 2017

Francesco Bellandi

Part V analyzes the details of how to assess materiality. It first tackles qualitative versus quantitative criteria and the role of professional judgment. It then analyzes…

Abstract

Part V analyzes the details of how to assess materiality. It first tackles qualitative versus quantitative criteria and the role of professional judgment. It then analyzes the selection of quantitative threshold, to expand to the choice of benchmarks. It contrasts the whole financial statements with subaggregates, line items, and components.

Specific sections contrast IASB, FASB, SEC, and other guidance on materiality applied to comparative information, interim reporting, and segment reporting.

The section on estimates mingles complex guidance coming from accounting, auditing, and internal control over financial reporting to explain how the management can improve its assessment of materiality concerning estimates.

After explaining the techniques to move from individual to cumulative misstatements, the part tackles verification ex post, and finally summarizes the intricacies of whether immaterial misstatements are permissible and their consequences.

Details

Materiality in Financial Reporting
Type: Book
ISBN: 978-1-78743-736-4

Keywords

Article
Publication date: 1 March 1999

K.H. Spencer Pickett

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of…

32737

Abstract

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Details

Management Decision, vol. 37 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 June 1998

K.H. Spencer Pickett

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of…

29039

Abstract

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Details

Managerial Auditing Journal, vol. 13 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 February 2002

Elizabeth Gammie, Bob Gammie and Fiona Duncan

The inclusion of a 12‐month work placement within an undergraduate degree programme in accounting resulted in the development of a distance‐learning auditing module to…

Abstract

The inclusion of a 12‐month work placement within an undergraduate degree programme in accounting resulted in the development of a distance‐learning auditing module to facilitate maximum accreditation from professional bodies. The pitfalls of such an approach have been well documented. The course team have produced a model that has been implemented and is currently operating, which has achieved a balance that has largely satisfied all respective stakeholders, namely students, lecturers, employers, professional bodies, and external examiners. This has been done through the use of certain strategic control mechanisms. The initiative has been reviewed through a series of unstructured focus groups. The main findings were that initial detailed contact with all stakeholders is fundamental to success in developing and implementing innovations, especially in the accounting curriculum. Equity is a key feature and must be addressed to ensure that all students have the opportunity to maximise their performance.

Details

Education + Training, vol. 44 no. 1
Type: Research Article
ISSN: 0040-0912

Keywords

Book part
Publication date: 28 November 2017

Francesco Bellandi

Part IV provides readers with the extant requirements for the application of materiality to recognition, measurement, presentation, and disclosure in the financial…

Abstract

Part IV provides readers with the extant requirements for the application of materiality to recognition, measurement, presentation, and disclosure in the financial statements. This part also includes a detailed critical review of the recent Practice Statement on materiality, the FASB’s proposed ASU on the notes and the amendments to the Conceptual Framework proposed by the IASB and the FASB.

The part expands to issues that are typical of Management Commentary, including the SEC guidance on materiality in Management Discussion and Analysis.

It informs about the complexities and subtle differences between financial statements and bookkeeping and the different standards of reasonableness versus materiality.

A section moves from materiality to material misstatements and covers the application of materiality in auditing.

Another section goes in depth on internal control over financial reporting, showing the linkages between materiality and risk appetite and risk tolerance and the related application guidance.

Details

Materiality in Financial Reporting
Type: Book
ISBN: 978-1-78743-736-4

Keywords

Article
Publication date: 1 July 1996

Mortimer A. Dittenhofer, James H. Scheiner and Thomas A. Gavin

Reports on a survey examination of the contents of the internal auditing programmes presented by schools and colleges endorsed by the Institute of Internal Auditors. The…

688

Abstract

Reports on a survey examination of the contents of the internal auditing programmes presented by schools and colleges endorsed by the Institute of Internal Auditors. The report contains the frequency of presentation and the characteristics of Basic and Advanced Internal Auditing, Internship and EDP Auditing courses. Also identifies other courses in the programmes. Discusses the philosophy of the programmes, foundation courses, completing the programmes, and marketing the programmes. Precedes the survey discussion by a description of historical activities related to the programme development; the prerequisites for participating programmes; and objective of the study.

Details

Managerial Auditing Journal, vol. 11 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 24 February 2012

Ronald F. Premuroso and Robert Houmes

The purpose of this paper is to teach students the fundamental and most critical aspects of performing a financial statement risk assessment, a skill vital to help ensure…

4264

Abstract

Purpose

The purpose of this paper is to teach students the fundamental and most critical aspects of performing a financial statement risk assessment, a skill vital to help ensure both auditor and public‐company compliance with guidance found in the Sarbanes‐Oxley Act of 2002 (SOX), the SEC's Interpretative Guidance regarding Management's Report on Internal Control over Financial Reporting, the control deficiency evaluation framework found in Auditing Standard No. 5 (AS5) of the Public Company Accounting Oversight Board (PCAOB), and the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Design/methodology/approach

This instructional case study helps students assess the impact of a set of hypothetical internal control deficiency risks in various industries, including inherent and residual financial statement risk assessment, and concludes with determining which identified internal control weaknesses are significant deficiencies and material weaknesses in internal control. Included in the financial statement residual risk assessment process are example entity‐level and process‐level controls described in COSO. Learning objectives, implementation guidance, and the efficacy of using the case study in the undergraduate or graduate auditing or accounting information systems courses are also provided.

Findings

The results of classroom testing of the case study at two universities provides evidence the case study increases student understanding of the implications of internal controls and their impact on the reliability of the financial statements significantly. Students also found the case to be challenging, interesting, relevant, clear, understandable, and a realistic approximation of what they might expect to encounter in the real‐world when performing a financial statement risk assessment.

Originality/value

The case study includes the development of skills important to students in performing financial statement risk assessments, either as an auditor or when working in a private industry environment, including making professional judgments related to risk assessment.

Abstract

Details

Advances in Accounting Education Teaching and Curriculum Innovations
Type: Book
ISBN: 978-1-84950-872-8

Book part
Publication date: 27 June 2008

Jill M. D’Aquila

I have presented an inventory of Accounting and Auditing Enforcement Releases (AAERs) by the Securities and Exchange Commission (SEC) for accounting educators to…

Abstract

I have presented an inventory of Accounting and Auditing Enforcement Releases (AAERs) by the Securities and Exchange Commission (SEC) for accounting educators to incorporate into their auditing, accounting, ethics, or financial accounting courses. I have organized the AAERs by audit issues in a manner consistent with the order of topics typically covered in a financial auditing class. Accounting educators can bring a dimension of realism into the classroom by using AAERs to discuss issues concerning audit planning, audit testing, accounting ethics, fraud, and financial accounting.

Details

Advances in Accounting Education
Type: Book
ISBN: 978-1-84950-519-2

1 – 10 of over 11000