Example of an attestation engagement

Assignment Help HR Management

Reference no: EM1331446

An Example of an Attestation Engagement, Fraud Scheme, etc.

1) Explain an example of an attestation engagement.

2) Explain a fraud scheme that could be used for information assets and explain the controls that can mitigate this fraud risk.

3) Explain the links between business continuity, system availability, and disaster recovery.

The completeness assertion is crucial for accounts payable. A common financial statement misstatement involves companies moving current liabilities from accounts payable to long term liabilities or to some other account in order to improve their financial statement liquidity ratios. When a company begins to drown in their accounts payable balance, it diminishes the financial strength of their balance sheet. In addition, many companies have debt covenants in place attached to their long term and short term debt, and the covenants usually state that current liabilities must be kept below a certain amount. If the A/P has climbed above an acceptable amount, it gives management the motivation to move A/P to another area, or to postpone posting A/P transactions that should be included in the current financial statement, until the next period. When an auditor tests for the completeness assertion for accounts payable, the auditor is testing to verify that all A/P transactions which should be included are included in the financial statements, and that they are being carried at the proper amounts.

4) Accounts payable is usually the largest current liability in a balance sheet and a significant factor in evaluating an entity's short-term solvency. The audit of payables places greater emphasis on the completeness assertion. The reason for this is that if management were motivated to misrepresent payables, it would likely be to understate them in order to report a more favorable financial position. Correct?

If management is held too rigidly to delivering targeted earnings, it may cause the incentive to misstate the financial statement through the management of purchases cutoff or other steps that result in unrecorded liabilities.

Reference no: EM1331446

Questions Cloud

Human resource development - work environment and conditions : What can be done to maximize transfer of training if the work environment and conditions are unfavorable and difficult to change?

Public law and private law ramifications : Discuss the public law and private law ramifications for DWI in this situation. How would the legalities be different if the incident happened at a DWI resort on the US mainland?

Explain technology trends in e-business : Understand different technology trends in e-business - would like information and references to do additional research.

Business strategy : MGT 475 (02) - Business Strategy, School of Business and Economics, ICA - Project Guidelines

Example of an attestation engagement : Explain an example of an attestation engagement and Explain a fraud scheme that could be used for information assets and explain the controls that can mitigate this fraud risk

A rural utility organization gives standby power : A rural utility organization gives standby power to pumping stations using diesel-powered generators.

Explaining use of hofstede-s cultural map in workplace : How can a leader, or manager, use Hofstede's cultural map in the workplace, as there are many diverse cultures that can be found in the workplace today?

Write a clear strategic plans : Write a clear strategic plans stretching over the next 3 to 5 years that will help Walmart improve.

Program that reads a set of scores from the file scores : plan and write a C++ program that reads a set of scores from the file scores.dat and outputs their mean and standard deviation on standard output. Use the following sets of input for testing the program.

User Account

All Pages