Essay Title: 

contemporary auditing

April 2, 2016 | Author: | Posted in accounting, mathematics and economics

Title

Contemporary Auditing

Style : APA Introduction

Auditing is an assessment of an organization , system , process , project or product . In accounting audit is an independent evaluation of the fairness of the report of a company . The financial statements of a company presented by its management are audited for transparency Competent , independent and objective person or persons do it . Auditors or an accountant issues a report on the result of an audit

Internal Audit

Internal audit is the part of the internal control system , which is introduced in large business [banner_entry_middle]

entities to detect any error or fraud at an early stage . Central audit conducts the audit of different divisions at the head office , zonal offices and their area offices . Moreover Central Audit office supervises advices , directs and provides necessary guidelines to the zonal audit offices . The zonal audit office audits all branches within the zone . The Internal Audit Division works under the direct supervision of the Managing Director , however , it is completely independent in its work

Different audit situations

1

If the financial statements are presented fairly in all material respect then the auditor ‘s opinion should be a qualified opinion and he or she may describe the circumstances in an explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs and Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs and Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs

2

In auditing the Long-Term Investments account , an auditor is unable to obtain audited financial statements then the auditor may give an unqualified opinion and an adverse opinion and . Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs and Describe the circumstances in the introductory paragraph without adding an explanatory paragraph , and modify the wording of the scope and opinion paragraphs

3

Due to recurring operating losses and working capital deficiencies , an Auditor has substantial doubt about the organization then he or she may give An unqualified opinion An adverse opinion and Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph and . Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the opinion paragraph Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs

4

If the principal auditor decides to refer to the work of another

Auditor , who audited a wholly owned subsidiary of the entity and issued an

Unqualified opinion then the auditor may issue either an adverse opinion or a disclaimer of opinion and Describe the circumstances in an explanatory paragraph following the

opinion paragraph and modifying the opinion paragraph

5

If the auditor does not believe the statement of cash flows to be a useful statement then he or she may issue An unqualified opinion An adverse opinion And Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph and Describe the circumstances in an explanatory paragraph following the Opinion paragraph and modifying the opinion paragraph

6

If an entity changes its depreciation method for production equipment

Form the straight-line to a units-of-production method based on hours ofUtilization then the auditor may issue either a disclaimer of opinion or a qualified opinion and describe the circumstances in an explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs and describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs

7

An entity is a defendant in a lawsuit alleging infringement of certain patent rights . However , management cannot reasonably estimate the ultimate outcome of the litigation then the auditor may issue A qualified opinion and Describe the circumstances in an explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs and Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs

8

If an entity discloses certain lease obligations in the notes to the financial statements . The auditor believes that the failure to capitalize these leases is a departure from GAAP then the auditor may issue an adverse opinion An unqualified opinion And Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph and Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the opinion paragraph and Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs

Conclusion

The auditor may issue these different opinions in the different aspects of the report of an organization . Whatever is the organization and the report the auditor must work neutrally and precisely

Bibliography

1

2 . http /en .wikipedia .org /wiki /Auditing … [banner_entry_footer]

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