The CEO of your company recently met with the external auditors to discuss the scope of...
The CEO of your company recently met with the external auditors to discuss the scope of the year’s audit. The auditors suggested that they conduct an integrated audit. The CEO has asked you, the accountant, to make a presentation at the next board of directors meeting that includes the following:
- Give a definition of auditing.
- Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes-Oxley Act (SOX).
- Explain corporate governance and its relation to integrated audits.
- Cite an example of a recent failure in corporate governance.
- Find an article in which the actions that the public perceived as necessary to improve the quality of corporate governance are discussed; list the actions requested according to the article.
Homework Answers
DEFINATION OF AUDITING
1.An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern.
2.An integrated audit combines a financial statement audit with an audit of internal controls. Since the Sarbanes-Oxley Act came into effect, management is responsible for establishing, maintaining, and reporting on an internal control structure, and auditors are required to assess this internal control .
3.structurecorporate governance as “the system by which companies are directed and controlled”. ... The value creation concept of internal audit will therefore be an integrated part of making sure that the company achieves long-term success and that it is creating value for the society at large.
4.Ineffective Audit System,poor risk management , lack of regulatory supervision , non existent board of directors
STEPS FOR IMPROVING THE CORPORATE GOVERNANCE
1.Clarify the board's role in strategy. ...
2.Monitor organisational performance. ...
3.Understand that the board employs the CEO. ...
4.Recognise that the governance of risk is a board responsibility. .
5.Ensure the directors have the information they need.
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The CEO of your company recently met with the external auditors
to discuss the scope of...
The CEO of your company recently met with the external auditors to discuss the scope of...
The CEO of your company recently met with the external auditors to discuss the scope of the year’s audit. The auditors suggested that they conduct an integrated audit. The CEO has asked you, the accountant, to make a presentation at the next board of directors meeting that includes the following: Give a definition of auditing. Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes-Oxley Act (SOX). Explain corporate governance and its relation...
The CEO of your company recently met with the external auditors to discuss the scope of...
The CEO of your company recently met with the external auditors to discuss the scope of the year’s audit. The auditors suggested that they conduct an integrated audit. The CEO has asked you, the accountant, to make a presentation at the next board of directors meeting that includes the following: Give a definition of auditing. Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes-Oxley Act (SOX). Explain corporate governance and its relation...
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