Chapter_Ten_class - 10-29 a. 3 b.3 c.4 d.4 10-30 a.3 b.2...

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10-29 a. 3 b.3 c.4 d.4 10-30 a.3 b.2 c.4 d.2 10-31 a.3 b.4 c.4 d.2 10-32(not a big deal) When you’re checking it, you need to look at solution 10-33 for the solution manual. 11/2/09 announcements: Type up pinnacle or it won’t be graded. Find the spreadsheet, matrixes. Use the website to get the matrixes. Quiz 7: Covers chapter 10 (internal controls). For future classes, there are three website posted. Look at those websites in detail. They deal with what we are learning here and could be tested o SoX 404 : Key update to SoX 404, should be aware of this. In the quizzes for future, and even in the final exam. Read it, educate yourself. Not in your book. IMPORTANT o Center for Audit quality : look at it. Not Tested. Learn about the organization. o Association of certified fraud examiners : Lots of information on fraud, current, how does it happen, how they’re caught. Auditing Lecture Notes- Chapter Ten Opening Vignette Discussion- Fraud does occur and it can be significant in amount. Auditors can only provide reasonable assurance – not absolute Auditors should concentrate on “ prevention ” by tightening internal controls A French security trader, in a French financial institution. He made a lot of decisions with lots of money. There is a lot of risk and pressure with that. This person ignored company policy. You have to make investments, but he had to hedge. Be aware of individuals/positions that have the ability to override controls!! He ignored company policy, and he was hiding it. As an auditor you should also check the personnel of the company. Who has the ability to manipulate this information? Set controls, so the people that can overwrite it, cant
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SOX 404 - Internal controls. Caused companies and CPA firms to put in a lot more hours than originally. Looking at IC the way we have to do by the passing of SoX, requires a lot more hours. SoX is consistently updated. Client’s/Management concerns about ICS – Management broad objectives of Internal Control what is it that management of the client is focusing on when they put on an internal control structure? * Reliability of financial reporting *Efficiency and effectiveness of operations * Accurate information for decision making *Safeguarding of assets * Compliance with applicable laws and regulations * Civil Rights Laws * Federal Securities Laws Management of public companies must abide by section 404 of the Sarbanes-Oxley
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Chapter_Ten_class - 10-29 a. 3 b.3 c.4 d.4 10-30 a.3 b.2...

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