When five of the eight tickets were also not included in the bank deposit of the day, Will and Vince decided to have a meeting to discuss how they were going to proceed.
In this case, the auditors may have decided to: He checked this back to the bank deposit slip where he reconfirmed that the deposit was dated November 16, Ignoring the obvious signs that Jess was stealing money would only lead to her continuing to steal more money.
Will asked Jessica about the matter but she brushed it off and he was forced to report what he found out to Vince. This presents an issue in that skepticism can sometimes be influenced by the relationships auditors have made with the people they are auditing.
And If you need love get a puppy essay he noticed that it is impossible for a cash receipt to be paid for with a bill marked Auditors should be able to notice any signs or signals of fraud and then be able to trace the documents back to anything that may help to uncover fraudulent activity.
When most people make ethical decisions, one of the things they do is try to find alternatives to the problem or situation and ask themselves what the consequences of those alternatives would be. But Vince Huston, the partner that he had usually worked with assured him that knowing Jessica may not be such a bad thing.
The morning after the daily payment vouchers are processed and deposited, a reconciliation by someone who was not a recipient of cash payments the previous day needs to be done to reconcile that the total amount deposited into the bank matches the bank statement of amounts deposited by check, cash and money order.
With the evidence leading to fraudulent activity, the auditors could have decided to proceed in one of two ways. She would get punished for her crimes and on a more personal level, reporting her would lead to Will losing his best friend. The first being to assess the level of materiality and decide if the amounts were immaterial, and if so they could leave the report as is.
After Will presented Vince with the evidence that he has found after Jessica showed him the missing deposit slip along with the cash, the two decided to test eight more cash paid tickets. However, he noticed that the bills were crisp and has been printed in A monthly reconciliation needs to be performed for all payments done by credit card.
The profession should consider tightening the Code of Professional Conduct to address the issue of an audit team member knowing a close friend that holds any position at the audit client. Some cases may exist where auditors in similar situations were so uncomfortable that they looked the other way.
The Code of Professional Conduct addresses the issue of personal client relationships.
For instance, if an auditor were to own even one share in a company that he or she was auditing, third party users would likely see that auditor as lacking independence even if the auditor was truly unbiased and considered that share irrelevant.
The evidence that would lead to support her claim would be her statement that there could be several explanations as to why the ticket was missing. When Will was completing the audit and found that a cash receipt had not been deposited, he did not want to believe that Jessica was responsible so he double-checked his work and then he asked her about it.
Jessica would have never gotten caught, and the fraud might have continued. An auditor is more likely to believe the assertions made by someone they know and trust, and this directly hinders on their skepticism. This document tracing is important evidence that clearly shows a discrepancy in the documentation which lead to the first real line of evidence towards fraud.
How to cite this page Choose cite format: After receiving the bank deposit from Jessica, he was still skeptical because he had noticed a few minor things. This is because fraud is often committed by a person that the auditor least expects. She originally suggested that the ticket most likely was included with the other cash.
Hire Writer The two main conditions that could have affected his skepticism were his relationship with the process owner he was auditing and the materiality levels set forth for the audit.
The Generally Accepted Auditing Standards require that the auditor must maintain independence in mental attitude in all matters relating to the audit.If You Need Love, Get A Puppy Words | 9 Pages.
If You Need Love, Get A Puppy 1. PCAOB describes professional skepticism as a general duty of care that needs to be applied by the auditor throughout the duration of the audit engagement. View Essay - If You Need Love-1 from ACC at Northwest State Community College. If You Need Love, Get a Puppy: A Case Study on Professional Skepticism and Auditor Independence Robert L.
Braun and. If You Need Love Get a Puppy. Auditing Guidance: AU § This is the standard on independence in mental attitude in all matters relating to the audit. Auditing Guidance: AU § This is the standard on independence in mental.
If You Need Love Get a Puppy. Auditing Guidance: AU § This is the standard on independence in mental attitude in all matters relating to the audit.
The auditor needs to be aware of any personal factors that could impair his independence and objectivity. Essay If You Need. If You Need Love Get a Puppy. Auditing Guidance: AU § This is the standard on independence in mental attitude in all matters relating to the audit.
The auditor needs to be aware of any personal factors that could impair his. If You Need Love, Get a Puppy: A Case Study on Professional Skepticism and Auditor Independence Robert L. Braun, Associate Professor, H. Lynn Stallworth, Associate Professor Southeastern Louisiana University.Download