ipl-logo

Transaction Based Audit Studies

2011 Words9 Pages

The auditor chooses key processes by subjectively weighing at least three factors: (1) the strategic relevance of the process, that is, how vital the process is to achieving a client’s strategic objectives, (2) the process’s inherent business risk, that is, how likely it is that a business risk will occur in the process, ignoring the effects of related controls, and (3) the strength of the client’s control environment, that is, management’s attitude, awareness, and commitment toward the importance of controls. Once chosen, the auditor studies each key process to gain an understanding of significant process objectives and related business risks, the controls in place to mitigate these risks, and the financial statement implications of these …show more content…

O’Donnell (2003) provided undergraduate accounting students with computer-system control information organized with either a process focus, as in an SSA audit, or with a control-objective focus, as would be typical in a TBA audit. The participants in the process-focus condition found the task less complex than those in the objective-focus condition, and also displayed higher primacy bias and poorer recall …show more content…

TBA(transaction based audit) differences in the way client information is presented to auditors affected their ability to identify and assess risks in an analytical-procedures planning context. They presented experienced auditors, all of whom were seniors from a TBA firm, with client information organized with either a process focus, as in an SSA audit, or a transaction-cycle focus, as in a TBA audit. The auditors were then asked to use analytical procedures to identify risks and rate the level of misstatement risk for the engagement. Results showed that the auditors in the SSA condition identified more risks and rated misstatement risk at a higher level than auditors in the TBA condition, indicating that SSA vs. TBA differences can affect an auditor’s decision performance. The authors concluded by suggesting that future research examine other dimensions of the association between knowledge acquisition and decision performance. This dissertation does so by investigating the effects of methodology differences on auditors’ knowledge acquisition, content, and organization, as well as the effects of any resulting knowledge differences on audit

Show More
Related
802 Words | 4 Pages

1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).

Read More
789 Words | 4 Pages

A financial audit is an independent, objective evaluation of an organization 's financial reports and financial reporting processes. The primary purpose for financial audits is to give stakeholders reasonable assurance that financial statements are accurate and complete. Most internal audits are not adding value. One reason is that “ongoing compliance burdens and pressure to do more with less” is contributing to the decline in perceived internal audit value.

Read More
1353 Words | 6 Pages

Kendall Jones Explores the Types of Customer Audits in

Read More
479 Words | 2 Pages

The auditing team will need to have a diverse set of skills and experience in order to properly audit Chesapeake Energy. First, the audit team must have experience within the gas and oil industry in addition to understanding the various complications of oil and gas production. Relevant skills and experience include knowledge about the industry, and include work experience related to oil and gas companies. This is critical because many oil and gas companies operate internally and follow IFRS. Some only follow GAAP such as Chesapeake Energy.

Read More
732 Words | 3 Pages

Practitioners and firms that hold this role—and institutionalize a procedure to change the active of the CPA-client association—will be in the best situation to appear as the potential leaders in the profession. Superior client relationships. By poignant from being a provider of services, such as tax return preparation, to a supplier of strategic commerce advice, such as thoughts for replication the revenue of a client’s corporation over the next three years, CPAs can expand deeper, more impactful relationships with customers. Client recommendation. CPAs who do

Read More
1164 Words | 5 Pages

Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through their network of more than 70 offices in over 20 countries, they have served more than 40 percent of FORTUNE 1000® and FORTUNE Global 500® companies. They also work with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half. Founded in 1948, Robert Half is a member of the S&P 500 index.

Read More
908 Words | 4 Pages

The risk management process establishes the methodology for risk enterprises framework for the of many businesses (Fraser & Simkins, 2010). A retail business such as Target needs to do a risk assessment to establish the types of risks being faced by the organization. The risk assessment process starts with the identification and categorization of risk factors. High customer interaction of the retail businesses like Target, need to identify risk as a continuous basis effort over the lifetime of the business (Mandru, 2016). It important that the business leaders, set goals and priorities for the risk management system.

Read More
427 Words | 2 Pages

Off campus Popovski has been employed as an accountant. Despite the differences in accounting and computer science, the occupation has given Ms. Popovski several work related skills. They may not have been writing code, but her job as an account led to the development of time management, and delegation skills. The skills Ms. Popovski is building at Binghamton University are aiding to prepare her for a successful

Read More
993 Words | 4 Pages

Information Systems Audit and Control Association (ISACA). 6. Describe three of the COBIT P09 control objectives. • Plan and Organize is the domain that deals with the strategy and tactics and concerns the identification of the way information technology can best provide to the accomplishment of the business

Read More
749 Words | 3 Pages

Each firm provides auditing and consulting services, though the amount may differ between the firms, they provide more opporutnities than nearly every other firm. Even though each of the firms shares these traits, they have many cultural differences that set them

Read More
1090 Words | 5 Pages

Evaluating validity to examine the effectiveness in and throughout the process. This process involves the factuality of information, project design, data applications, data, model and the results from an event or occurrence. Accountability will include checks and balance, performance evaluations, assessment and customer satisfaction. Measurement tools will then be considered in the light of the industry’s exclusive realities and considerations. Over time, accountability impact and cost must be evaluated.

Read More
721 Words | 3 Pages

Introduction After the fall of Enron and WorldCom, investors’ confidence and trust in the market was at an all time low. In response, Congress passed the Sarbanes-Oxley Act to help regulate and provide guidance over internal controls and financial reporting. With the implementation of SOX was section 404, which requires external auditors to assess company’s internal controls and management to sign all financial statements. Internal controls are specific procedures and “measures adopted within an organization to safeguard assets, enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Weygandt, Kimmel, & Kieso, 2013 p.377). The system of internal controls consists of five components; A control environment, risk assessment, control activities, information and communication, and

Read More
724 Words | 3 Pages

Evaluating is the costing of the item, the publicizing and showcasing costs, any value changes in the business, conveyance costs and

Read More
1763 Words | 8 Pages

In this section the author describes the theories that will support the analysis of information. In order to construct a theoretical background for the study the author chose to describe theories regarding the selection of countries. 5.1 Transaction costs theory Transaction cost theory was developed by Coase (1937) and then re-analyzed by Williamson (1979). The theory explains why companies exist and expand their activities to external environments finding out that ‘’A Transaction cost occurs when a good or service is transferred across a technologically separable interface’’.

Read More
894 Words | 4 Pages

As a member of credit team, I assisted the team to work on annual report audit for Agricultural Bank of China. Because of my good communication ability, and learning capacity, I was assigned to take charge of challenge tasks, such as reorganizing contents of audit working paper, and dealing with tough clients, which were out of the scope of an intern 's duty. But this job was rewarding and immensely instructive. I gained the familiarity with audit procedures from an operational level, and grasped a deep understanding of commercial bank 's operational process and business policy. Meanwhile, I was determined to take joining PwC as my first career objective after the graduation

Read More

More about Transaction Based Audit Studies

Related Topics

Open Document