Reference no: EM13136636
PART A
International Standards on Auditing (ISA) have been approved by the International Auditing and Assurance Board (IAASB). Recently, the IAASB has issued a number of proposed ISAs for comment
The key enhancements to auditor reporting are:
Proposed ISA700 - Forming an Opinion and Reporting on Financial Statements
Proposed ISA701 - Communicating Key Audit Matters in the Independent Auditors Report
Proposed ISA260 - Communication with Those Charged with Governance
Proposed ISA570 -Going Concern
Proposed ISA705 - Modification to the Opinion in the Independent Auditor's Report
Proposed ISA706 - Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditors Report
Briefly explain the nature and effect of these enhancements
PART B
In January of 2007 the Public Company Accounting Oversight Board (PCAOB) felt it necessary to issue a 14 page report commenting on over 20 shortcomings it had observed in the way auditors were addressing their responsibilities with respect to fraud.
Refer PCAOB Release 2007-001 January 22 - 2007: Observations on Auditors Implementation of PCAOB Standards Relating to Auditors' Responsibilities with Respect to Fraud pcaobus.org/Inspections/Documents/2007_01-22_Release_2007-001.pdf
Identify ten shortcomings
PART C
The Companies Auditors and Liquidators Disciplinary Board (CALDB) responds to applications mad by ASIC concerning auditors.
a) Briefly describe the powers of the Board
b) Go to the caldb.gov.au website and under the ‘Decisions' tab you will find CALDB decisions since January 2008. There are 15 verdicts. Briefly describe any five decisions including the breach and penalty applied.(i.e. facts and outcome)
|
Prepare consolidated net income and show all the work
: Musical earned $308,000 in net income 2011(not including any investment income) while martin reported $126,000. Assume there is no amortization related to the original investment. Prepare consolidated net income for 2011 and show all the work.
|
|
Journal entry when recording the conversion
: At June 30, 2009, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2009, half the bonds were converted when Blair's common stock had a market price of $30 per share. What journal entry should Blair make ..
|
|
What is effect of a bargain purchase option on accounting
: So what is the effect of a bargain purchase option on accounting for a capital-lease transaction by a lessee?
|
|
How much heat (in ) is required
: How much heat (in ) is required to warm 12.0 of ice, initially at -12.0, to steam at 114.0? The heat capacity of ice is 2.09 and that of steam is 2.01 .
|
|
International standards on auditing
: International Standards on Auditing (ISA) have been approved by the International Auditing and Assurance Board (IAASB). Recently, the IAASB has issued a number of proposed ISAs for comment
|
|
Linear-quadratic-and exponential trends to time series
: Discuss the underlying causes that might explain the trend. (c) Use Excel, MegaStat, or MINITAB to fit three trends (linear, quadratic, and exponential) to the time series.
|
|
Determine effect on net income and earnings per share
: It is estimated that the company will earn $800,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 90,000 shares of common stock outstanding prior to the new financing. Determine the ..
|
|
Determine the molar composition in percent of the mixture
: a solution consisting of isobutyl bromide and isobutyl chloride is found to have a refractive index of 1.3931 at 20 degrees celsius. The refractive indices at 20 degrees celsius of isobutyl bromide and isobutyl chloride are 1.4368 and 1.3785
|
|
Empowered delegation for managers
: Empowered delegation can produce all dimensions of empowerment, including a sense of competence, choice, impact, value, and security. Empowerment and delegation must be linked in the assignment of work.
|