Failed to supervise the assistants Work performed was not adequately planned 2

Failed to supervise the assistants work performed was

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Failed to supervise the assistants. Work performed was not adequately planned. 2. Obtain a sufficient understanding of the entity and its environment, incl. internal control Did not study the client or its environment Did not review the entity’s system of internal control (accounting services VS audit services) 3. Obtain sufficient appropriate audit evidence Neglected standard audit procedures and techniques Merely checked mathematical accuracy of the records and summarized the accounts Standards of Reporting Failure to Comply 1. In accordance with generally accepted accounting principles (GAAP) 2.Identify circumstances in which GAAP have not been consistently observed
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3. Either express an opinion, or state that an opinion cannot be expressed (and state the reasons) 4. State in the auditor’s report, when informative disclosures are not reasonably adequate. Both the statements and the auditor's report lack adequate disclosures. ii. Part B (ASB Principles Underlying an Audit) Principles Failure to Comply 1. Purpose and Premise of an Audit: - Auditor to provide an opinion on whether FS are presented fairly, in all material respects, according to the applicable framework - Management to prepare and fairly present FS - No opinion on whether the financial statements are presented fairly in accordance with GAAP, or any other financial reporting framework - Did not ensure that management fulfilled its responsibilities of fair presentation- making appropriate disclosures in the financial statements. 2. Responsibilities: - appropriate competence and capabilities - complying with ethical requirements - maintaining professional skepticism - exercising professional judgment - Hired the two students to conduct the audit - Not independent - Neither Jones nor her two assistants exercised professional skepticism or professional judgment 3. Performance: - plan the work and supervise any assistants - determine an appropriate materiality level - identify and assess risks of material misstatement based on an understanding of the entity and its environment and internal control - obtain sufficient appropriate audit evidence - Failed to supervise the assistants - No adequate planning - Did not study the client or its environment or internal control - Did not identify risks of material misstatements - Acquired little audit evidence 4. Reporting: - express an opinion or states that an opinion cannot be expressed, based on evaluation of the audit evidence. - reference to applicable financial reporting framework - Opinion is not based on the results of a proper audit examination - Should disclaim an opinion - Opinion made no reference to the applicable financial reporting framework - Financial statements did not contain adequate disclosures
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  • Fall '08
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  • Auditor's report

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