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Unformatted text preview: AC410-01 Auditing Unit 2 Project Marjorie Bowden 1-38 A) Users of financial statements need independent, objective, and competent data to make informal decisions. B) The investing public can be made aware of the efficiency of a company’s performance and the potential impact on the future of the company. C) An audit committee should improve the quality of information for decision makers, and the content of the process. 1-40 A) Although one purpose of an audit is to detect and report fraud, it is not the primary purpose. Auditing is a process of gathering evidence, evaluating it against objective criteria, and communicating the findings to interested parties. B) A problem may or may not present when the manager is also the owner. This would depend on the individual’s moral and ethical manner. C) I do not believe that charities such as the Red Cross should have the same mandatory reporting on internal controls as public companies. However, I do feel they should have to report the information in the same way. D) I disagree with this statement. The expectations cannot be set high enough to ensure everyone’s interests. I do feel that the public could be educated on the expectations. E) This statement has both truths and false in it. By consulting with a public accounting firm it could enhance the effectiveness of the audit, but the firm completing the audit would...
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- Spring '11
- External auditor, PCAOB