Auditing

Audit Risk Model
Audit Risk Model
Audit Risk Model This is defined in AUS 402 as ‘the susceptibility of an account balance ... to misstatement that could be material ... assuming there were no related internal controls’ (AUS 402.09). Estimating the inherent risk (IR) for each account balance or class of transactions requires the auditor to take into account such factors as the level of complexity involved in determining the ‘correct’ balance of an account, the complexity of transactions involving the particular account(s) and t
Financial Reporting
Financial Reporting
Financial Reporting On September 28, 1998, Chairman of the U.S. Securities and Exchange Commission Arthur Levitt sounded the call to arms in the financial community. Levitt asked for, immediate and coordinated action... to assure credibility and transparency of financial reporting. Levitt’s speech emphasized the importance of clear financial reporting to those gathered at New York University. Reporting which has bowed to the pressures and tricks of earnings management. Levitt specifically add
Asian Crisis
Asian Crisis
Asian Crisis A large economic downturn in East Asia threatens to end its nearly 30 year run of high growth rates. It is hard to understand what these declines will actualy do to the world market. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt, loose government regulation, and corruption. Due to East Asia\'s large impact o
Statistical concepts are used in various aspects o
Statistical concepts are used in various aspects o
Statistical concepts are used in various aspects on industry. The following highlights the use of statistics in these industries: Accounting/Auditing, Insurance, and Medical (Pharmaceutical). In the accounting/auditing field, it is imperative that the auditor makes an effort to determine that financial statements are stated accurately and free of material error (appear to be stated accurately). To accomplish this task, auditors utilize test methods that include statistical sampling of accountin