ACCT 497 Lecture Notes - Lecture 12: Occupational Safety And Health, Audit Risk, Financial Statement
23 Feb 2017
School
Department
Course
Professor
Document Summary
Evaluate audit evidence: discrepancies in the accounting records, conflicting or missing evidential matter. Confirm with them with an inquiry if it is a problem: problematic or unusual relationships between the auditor and management, results from substantive of final review stage analytical procedures, vague, implausible or inconsistent responses to inquiries. Communicate fraud matters: evidence that fraud may exist must be communicated to appropriate level of management. Preliminary findings: sarbanes oxley: significant deficiencies must be communicated to those charged with governance, any fraud committed by management (no matter how small) is material, exception of confidentiality. If the successor auditor asks the predecessor auditor. Keeps their company out of the spotlight. If more people knew about this, they would have had a risk of losing more customers. Noncompliance with laws and regulations: direct-effect noncompliance produces direct and material effects on the financial statements. The law or regulation can be identified with a specific account or disclosure (e. g. , income tax evasion).
