strayer acc403 week 4 (discussion +assignment +homework +quiz)
"Evidence Collection Procedures" Please respond to the following:
· According to an article in the CPA Journal, the auditor considers reliability of audit evidence collected and the reliability of that evidence to reduce the risk of financial statements containing undetected material errors. Compare and contrast at least two (2) types of evidence, and make a recommendation as to which you believe is the most reliable in reducing risk. Support your position.
· From the e-Activity, analyze the primary ways in which auditors would use the information from downgrades to assess business risk or evaluate the likelihood that the downgrades would impact the auditor's assessment of the client's business environment. Ascertain the major ways in which this information would impact the audit risk model equation. Support your position.
Due Week 4 and worth 240 points
The
Securities and Exchange Commission (SEC) regulates public companies. The
SEC has found that some of these companies have violated GAAP by using
creative accounting practices to mislead investors and creditors
regarding the health of their company.
Use the Internet or
Strayer Library to research a recent accounting scandal within the last
five (5) years where the SEC accused public companies of accounting
irregularities.
Write a three to four (3-4) page paper in which you:
- Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.
- Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.
- Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position.
- Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response.
- Use at least two (2) quality academic resources in this assignment.Note:Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Week 4 Homework Submission
Click the link above to submit your assignment.
Chapter 7: Problems 7-29(a-g) and 7-33(a-b)
Chapter 8: Problems 8-29(a-d) and 8-32(a-b)
quiz 3
2 out of 2 points
Correct
The principal issue to be resolved in cases involving alleged negligence is usually:
Question 2
2 out of 2 points
Correct
The laws that have been developed through court decisions are called:
Answer
Question 3
2 out of 2 points
Correct
The preferred defense in third party suits is:
Question 4
2 out of 2 points
Correct
To succeed in an action against the auditor, the client must be able to show that:
Question 5
2 out of 2 points
Correct
A(n) ________ failure occurs when an auditor issues an erroneous opinion because it failed to comply with requirements of auditing standards.
Question 6
2 out of 2 points
Correct
The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:
Question 7
2 out of 2 points
Correct
The principal issue in cases involving alleged negligence is usually:
Answer
Question 8
2 out of 2 points
Correct
If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:
Question 9
2 out of 2 points
Correct
The Foreign Corrupt Practices Act (FCPA) of 1977:
Answer
Question 10
2 out of 2 points
Correct
Which of the following most accurately describes fraud?
Answer
Question 11
2 out of 2 points
Correct
In an action against a CPA in a jurisdiction that follows the Ultramares doctrine, lack of privity is a viable defense provided the plaintiff:
Answer
Question 12
2 out of 2 points
Correct
Fraud occurs when:
Answer
Question 13
2 out of 2 points
Correct
Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:
Answer
Question 14
2 out of 2 points
Correct
The expectation gap:
Answer
Question 15
2 out of 2 points
Correct
A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):
Answer
Question 16
2 out of 2 points
Correct
When an auditor believes that an illegal act may have occurred, the auditor should first:
Answer
Question 17
2 out of 2 points
Correct
Which of the following assertions is described as "this assertion addresses whether all transactions that should be included in the financial statements are in fact included"?
Answer
Question 18
2 out of 2 points
Correct
"The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:
Answer
Question 19
2 out of 2 points
Correct
In testing for cutoff, the objective is to determine:
Answer
Question 20
2 out of 2 points
Correct
When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:
Answer
Question 21
2 out of 2 points
Correct
If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:
Answer
Question 22
2 out of 2 points
Correct
Fraudulent financial reporting is most likely to be committed by whom?
Answer
Question 23
2 out of 2 points
Correct
If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:
Answer
Question 24
2 out of 2 points
Correct
A questioning mindset:
Answer
Question 25
2 out of 2 points
Correct
Which of the following is the auditor least likely to do when aware of an illegal act?
Answer
Question 26
2 out of 2 points
Correct
The most important general ledger account included in and affecting several cycles is the:
Answer
Question 27
2 out of 2 points
Correct
The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.
Answer
Question 28
2 out of 2 points
Correct
Auditors accumulate evidence to:
Answer
Question 29
2 out of 2 points
Correct
Which of the following statements is the most correct regarding errors and fraud?
Question 30
2 out of 2 points
Correct
The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:
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Rating:
/5
Solution: strayer acc403 week 4 discussion +assignment +quiz
Solution: Consider the following data from a small bookstore.