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Examples Of External Auditor

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I am interested in a position, preferably as an external auditor, to contribute my humble accounting and finance knowledge in your accounting firm. As this job position also consists of consultation roles, such as financial consultation, preparation of financial accounts, business advice and taxation purpose to enhance the allocation of resources and generate revenue for the small and medium-sized enterprises (SMEs). I have learned two key theories from the course Accounting Theory and Analysis 308 in my undergraduate education that will help me in taking up this job position, they are: (1) International Accounting, and (2) Earnings Management.

Firstly, the importance of external auditor to be well-equipped with the knowledge of international …show more content…

The standardisation of accounting standards in different countries using IAS can be one effective solution to reduce the barriers of business tradings between countries. For example, the management of Haigh’s Chocolates can understand and compare the annual reports of Hershey Company, Singapore with Cadbuy, Malaysia that comply with IAS though there is a difference in the cultural values, currency, and legal and taxation systems in the countries before making business …show more content…

al. 2012, 257). Earnings management theory can help the firms manage their financial performances. For instance, the earnings information in financial reports act as an input to the debt covenants to decide on providing loans to the firms, and it can reflects the creditors’ risk if the firm has cash flow problems stated in the report.

Firms that present fictitious earnings information in reality which known as ‘black earnings management’, while ‘white earnings management’ is when company give true and fair view of its financial report to the public where high transparency has implemented in the organisation (Rankin et. al. 2012, 258). ‘Grey earnings management’ is when the annual report having biased information that could benefits the organisation, but still not consider as fraudulent (Rankin et. al. 2012, 258).

Earnings management can be good practice if applied in a responsible manner such as complying to the strategic choices that had been implemented in the accounting standards (Rankin et. al. 2012, 262). Unfortunately, more often management of firms could alter the accounting practices to present a desired outcome such as using the accrual methods to accelerate or detain recognition of the firm’s expenses and income (Rankin et. al. 2012,

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ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.

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However, internal audits show findings and recommendations which act as a tool for department heads to take suitable corrective action and help in plugging the loopholes which would otherwise go undetected for a considerable period of time. The external audit lends credibility to the financial reporting process of state and local governments, and an essential element of that process is the independence of the external auditors from the governments they are auditing. Otherwise, those who use governmental financial statements cannot rely on the integrity and objectivity of the auditors’ report.

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(iasplus.com, N.d) International accounting standard 28 (IAS 28) Investment This standard governs accounting for investments on associates. An associate refers to an entity for an investor to have a significant influence and have the power to participate on the operating and financial policy decision of the investee. (iasplus.com, N.d) Task 3 When the company is working on financial statements are different ways, among them must take that statements see the standards essential.

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Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill

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The FASB Accounting Standards Codification (FASB Codification) is the only source of authoritative GAAP apart from SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update to inform people about changes to the FASB Codification, which includes changes to non-authoritative SEC content. In relation to International Financial Reporting Standards (IFRS), after a new IFRS Standard is issued and before it becomes effective, the International Accounting Standards Board (IASB) helps stakeholders to understand the new Standard's principles very well. The activities of the board promote greater consistency in stakeholders' understanding of new Standards as the practice develops, which supports

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Game theory tries to prove that the justices will act strategically when trying to grant writs according to their ideology. In “Strategic Auditing in a political Hierarchy”, Cameron, Segal, and Songer are specifically looking at search and seizure cases from 1972 to 1986, and the writs that were granted by Supreme Court. The study could not account for the district court, but it could account for the circuit and supreme court. In the judicial common space, doctrinal compliance occurs when the lower court conforms to doctrine set by the higher court.

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Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance. “Pro forma” financial information can serve useful purposes.

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Introduction The main objective of the paper is to develop a report for a shareholder that will interpret financial statements of Tesco Plc. for 2013-2014. The shareholder is specifically concerned about the fraudulent reporting. In this way, the paper will explain the reason of income statement and statement of financial position.

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The unrealistic expectations of external users of financial statements to assume that an auditor remains totally impartial to client influence is a conclusion drawn from psychological research. The legal system forms the opposite view and has determined that external users should be able to rely implicitly on an auditor’s determination. Accounting standards have set expectations of auditor independence and neutrality. (Max H. Bazerman, 1997) The entire concept of professional scepticism and its application is the true and fair representation of financial statements to the users of these

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Leading people to invest in them based on false success. Accounting transparency is vital for the success of any organization. It is important for the investors, the customers and the bettering of the

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Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence

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The main important purpose of the accounting information system is to promote the activity of the enterprise and to form a reliable and real picture of it. In addition, the accounting information system promotes the activity of the enterprise effectively by preparing up-to-date information statements, providing as much information as possible so that the data should be understandable all users not only for the experts(bookkeepers) and tracking liquidity. Nowadays accounting software is a programme which makes accounting work processes easier and faster and which makes it possible to meet the information demand of the management. It also can support the accountants’ work, helping to compile reports by in helping to compile reports by recording and processing the events concerning the

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ACC701 AUDITING Trimester 1, 2015 INDIVIDUAL ASSIGNMENT Name: Deepika Bandhana Lal ID: 2012000693 ABSTRACT The purpose of this research paper is to positively evaluate the professional skepticism. The research will be based on the various definitions of the professional skepticism in the standards and the academic literature. It will also enhance the application of skepticism in the field.

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972 Words | 4 Pages

These procedures include audits and tax consultation, which demands not just knowledge of the tax law but also of interest, gross profit calculations and other business concepts. Also, an accountant must be skilled in math in order to perform practically in any aspect of their job. If a person has an interest to pursue accounting courses, gaining a broader view of the overall accountant’s work will truly help a person to decide whether to enter the field or

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Particularly well experiences accountants work with AIS means to check the high-level accuracy of company financial transactions and to keep the records in safety manner. To make financial statement easiest way and easy to understand for all of them. AIS is one of the real-time application processes. The Data will be included in the AIS; it depends on the Nature of the Business. It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information.

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