101 research outputs found
Interview with Dr. Janet Colbert [video]
No full textDr. Janet Colbert is a CPA and a certified internal auditor, as well as a Certified Forensic Accountant. She has published more than 100 articles in journals such as the Forensic Examiner, Journal of Forensic Accounting, Internal Auditor, and Journal of Corporate Accounting and Finance. In addition, she has written chapters in books and authored a Continuing Professional Education course for CPAs on forensic accounting. She is on the graduate faculty in EKU\u27s College of Business and Technology and teaches accounting and statistics in the MBA program as well as auditing at the undergraduate level
Protecting internal audit workpapers from discovery
No full textAccess to internal audit workpapers is increasingly being requested or demanded by parties external to the entity. To protect workpapers from discovery, internal auditors may take proactive measures. Such measures include developing comprehensive job descriptions, having workpaper policies and a corporate charter, and conducting investigations under the direction of an attorney. Despite proactive measures, sensitive information may still be petitioned. To shield confidential information, internal auditors may invoke the attorney-client privilege, the work-product privilege, or other, less well-known doctrines
Analytical Procedures for Management Accountants and Auditors
No full textAnalytical procedures entail estimating an expected value for an account
and comparing the estimation to the book value. External auditors make
extensive use of analytical procedures. By applying analytical
procedures before the external audit is performed, the management
accountant can locate and correct misstatements before they become
problematic. Examines the three categories of analytical procedures and
their utility to the management accountant. The three categories are:
reasonableness tests, trend analysis, and ratio analysis. Explains each
category and discusses the methods within each category. Also, provides
examples to aid the accountant in applying the procedures.</jats:p
Guidance For The Audit Committee: Acquiring Professional Services
No full textOutside firms are often called upon to provide an entity with professional services. Such services might include external audit, systems, accounting, appraisal and valuation, actuarial, consulting, tax, or agreed-upon procedures work. The audit committee of the Board of Directors is typically the party within the entity responsible for hiring and overseeing these outside professional service providers. The Sarbanes-Oxley Act of 2002 mandates that certain professional services, which may have previously been performed by the firm engaged to do the external audit, cannot be performed by that public accounting firm. Thus, audit committees may be forced to contract with other professionals for services previously provided by the external auditors. The task of locating, contracting with, and overseeing the work of qualified firms for these professional services may seem daunting to the audit committee. This article presents steps the audit committee should take in selecting a professional service provider and overseeing that firm’s work. Also given are ways in which the entity’s internal audit activity can provide significant assistance to the audit committee undertaking its tasks
DUS An Efficient, Effective Sampling Method
No full textDollar unit sampling (DUS) is a statistical sampling method which is easy to understand and simple to apply on audit engagements. This article gives guidance on preliminary determinations that must be made in order to use DUS. It also illustrates how to figure sample size and select the sample members. Techniques to use in evaluating the results of DUS tests are provided. Finally, there is a discussion of factor to consider in deciding if DUS is the most appropriate sample method in a particular audit situation
Can Managers Rely On The Work Of CPAs?
No full textManagers often rely on the work of independent CPAs as they make critical business decisions. To have confidence in the workproducts of CPAs, managers should be familiar with the regulation of the profession. Besides entrance requirements (examination and experience) and continuing professional education classes, CPAs are subject to disciplinary actions. The process of taking disciplinary process for CPAs in one US jurisdiction was first studied and documented. Then, ten years of disciplinary actions taken in the jurisdiction were researched. The results show that the State Board of Accountancy approaches a complaint against a CPA seriously. The Board investigates each individual complaint and molds the resulting disciplinary action to the specific case. In 99% of the cases, the CPA’s license was revoked, suspended, placed on probation, or censured. In the remaining cases, conditions to be complied with were handed down. Several CPAs were subject to more than one impact to the license. While the cases spanned a variety of issues, for 88% of the cases, the focus was the CPA’s failure to renew the license. In the small percentage of cases addressing more serious issues, the issue was peer review, a conviction/guilty plea/civil judgment, or some other violation of the state’s accountancy law. Most of the actions, 98%, were against individual CPAs, rather than CPA firms. The findings provide assurance to managers that the workproducts of CPAs can be relied upon in managers’ critical decision-making
Corporate governance and a program for complaints relating to accounting, auditing, and internal control
No full textComplaints relating to accounting, auditing, or internal control matters may periodically be received by corporations. Such matters may be submitted by a variety of parties including employees, vendors, customers, or others. Organizations should have in place, as a part of effective corporate governance, procedures for handling complaints. The Board of Directors, specifically the Audit Committee of the Board, should oversee the program, which is encompassed within the broader overall system of internal control. Management plays an important role in a corporate complaint program and both internal and external auditors can provide the Audit Committee with valuable information as that body monitors it.</jats:p
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