What is audit documentation and why is it important

Assignment Help Auditing
Reference no: EM13886978

In August 2011, the PCAOB barred two former Ernst & Young LLP (E&Y) employees from auditing public companies, alleging they provided misleading documents to PCAOB inspectors who were evaluating the audit firm's work. One partner was barred for three years, and a senior manager was barred for two years.

The PCAOB said that shortly before its inspectors were to inspect an E&Y audit of an unidentified company, the two auditors created, backdated, and placed in the audit files a document concerning the valuation of one of the audit client's investments. One of the auditors allegedly authorized other mem- bers of the audit team to alter other working papers in advance of the inspection. The changes were not disclosed to the PCAOB.

E&Y indicated that the conduct of the two auditors had no impact on the client's financial statements or on E&Y's audit conclusions.

a. What is audit documentation, and why is it important to a quality audit?

b. Given that the conduct of the two auditors had no impact on the client's financial statements or on E&Y's conclusions, why

Reference no: EM13886978

Questions Cloud

Paper - preliminary research on christian couples marriage : Write a research paper on given title- Title:Preliminary Research on Christian couples marriage
Preparing them better for a global society : Identify three changes that American society is undergoing, and discuss how those changes are reflected in schools? How can you as a teacher become better prepared for the cross-cultural differences that you are certain to encounter among students? H..
Engineering stress-strain curve up : The area under an engineering stress-strain curve up to fracture is the en- ergy/volume. The area under a true stress-strain curve up to fracture is also the energy/volume. If the specimen necks, these two areas are not equal.
The national minimum wage : The national minimum wage in the United States is currently $7.25 an hour. There are several arguments against the idea of minimum wage because it is supposed to harm those it is meant to aid. Use elasticity to explain/refute this idea.
What is audit documentation and why is it important : What is audit documentation, and why is it important to a quality audit? Given that the conduct of the two auditors had no impact on the client's financial statements or on E&Y's conclusions, why
Mutual fund alternatives with the following restrictions : 1.Dave has $100,000 to invest in 10 mutual fund alternatives with the following restrictions. For diversification, no more than $25,000 can be invested in any one fund.
Speculate about the nature of this abrupt change : The tensile strength of iron-carbon alloys increases as the percent carbon increases up to about 1.5 to 2%. Above this the tensile strength drops rapidly with increased percent carbon. Speculate about the nature of this abrupt change.
Determine the engineering strains : Determine the engineering strains, e, and the true strains, ε, for each of the following:
What are the unique evidence challenges for accounts : What are the unique evidence challenges for accounts such as allowance for doubtful accounts? How is professional skepticism helpful when testing this type of account?

Reviews

Write a Review

Auditing Questions & Answers

  Negative growth

Decide whether, in the event of an economic slowdown in the U.S., Bank of America's overseas revenue generation might serve to shelter the parent from slow or negative growth in the U.S. market. Explain and support your opinion.

  Types of control mechanisms

Identify the four types of control mechanisms that are used in Delta Airlines. I need 1 slide for each type of control mechanisms with speaker notes. That's a total of 4 slides + a references slide for me to look at.

  Bankruptcy and default-creditors concessions

What type of concessions might a creditor grant the debtor in a troubled debt situation? What is meant by "impairment" of a loan? Under what circumstances should a creditor or debtor recognize an impaired loan?

  Bank reconciliation of gift shop

You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.

  Your recent review of management financial data for 201213

your recent review of management financial data for 201213 has shown the following key statisticsfinancial

  Advise mr abrahams regarding what purchase price he should

Advise Mr Abrahams regarding what purchase price he should offer for the business of Delight Coffee Shop. Support your advice with detailed workings and consider the various methods for determining a fair purchase price.

  Compute ending inventory and cost of goods sold

Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.

  Life-cycle costing-target pricing

What is life-cycle costing? Under what circumstances can it be most useful? What are some potential problems with this approach? What is target pricing? Under what circumstances can it be most useful? What are some potential problems with this approa..

  Compute the predetermined overhead rate for the year

Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed components. (Omit the "$; sign in your response.)

  Create slides - microsoft powerpoint presentation for the

create slides - microsoft powerpoint presentation for the newly elected board members using same cafr from week

  Justification for internal control system

Write down a report in 700 words, justifying the need for the system when controls are in place with insurance and portfolio approaches.

  Develop an auditor report attesting to managements assertion

Develop an auditor report attesting to management's assertions regarding the effectiveness of internal controls and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd