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Feb 25, 2019 · Business Ethics is designed to meet the scope and sequence requirements of the single-semester business ethics course. This title includes innovative features designed to enhance student learning, including case studies, application scenarios, and links to video interviews with executives, all of which help instill in students a sense of ethical awareness and responsibility.
- Openstax College
Jan 11, 2020 · viii, 159 pages : 24 cm "Management Ethics is an indispensable resource and guide to the issues and debates within the ethics of management. It includes examination of: the obligations that managers have to their various stakeholders: employees, customers, shareholders, and the community; how managers can meet their obligations; the ethics of supply chain management; the ethics of dealing with ...
New assurance services initiatives The development of the assurance framework has placed greater emphasis on the provision of assurance services on information other than historical financial infor-mation. These initiatives include developments in the area of limited assurance engagements, which used to
- Chapter Preview
- Cloud 9 Integrated Case
- LEARNING OBJECTIVE 2
- Investors
- Suppliers
- Customers
- Lenders
- Employees
- Governments
- The General Public
- 1.2.2 Sources of Demand for Audit and Assurance Services
- Remoteness
- Complexity
- Competing Incentives
- Reliability
- Cloud 9 Integrated Case
- 1.2.3 Theoretical Frameworks
- Agency Theory
- Information Hypothesis
- Insurance Hypothesis
- Cloud 9 Integrated Case
- 1.2.4 Demand in a Voluntary Setting
- LEARNING OBJECTIVE 3
- Cloud 9 Integrated Case
- Process of a Financial Statement Audit
- Limitations of a Financial Statement Audit
- 1.3.2 Compliance Audits
- 1.3.3 Performance Audits
- 1.3.4 Comprehensive Audits
- 1.3.5 Internal Audits
- 1.3.6 Corporate Social Responsibility (CSR) Assurance
- Cloud 9 Integrated Case
- LEARNING OBJECTIVE 4
- reasonable assurance
- INDEPENDENT AUDITOR’S REPORT
- Basis for Opinion
- Other Information
- Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
- Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
- 1.4.2 Limited Assurance
- No Assurance
- review engagement
- Cloud 9 Integrated Case
- 1.5 Different Audit Opinions
- Cloud 9 Integrated Case
- LEARNING OBJECTIVE 6
- 1.6.1 Preparer Responsibility
- Relevant
- Reliable
- Comparable
- Understandable
- Fairly Presented
- 1.6.2 Auditor Responsibility
- Professional Scepticism
- Professional Judgement
- Due Care
- 1.6.3 Assurance Providers
- Cloud 9 Integrated Case
- LEARNING OBJECTIVE 7
- 1.7.1 Regulators, Standard Setters, and Other Bodies
- Auditing and Assurance Standards Board (AASB)
- Canadian Securities Administrators (CSA)
- Toronto Stock Exchange (TSX)
- Chartered Professional Accountants of Canada (CPA Canada)
- 1.7.2 Legislation
- 1.7.3 Regulation
- Cloud 9 Integrated Case
- LEARNING OBJECTIVE 8
- Audit expectation gap
- Cloud 9 Integrated Case
- 1 Define an assurance engagement.
- 4 Explain the different levels of assurance.
- 5 Outline different audit opinions.
- Situation 1
- Situation 2
- Required
- Research Question 1.1
- Required
The purpose of this chapter is to provide an overview of audit and assurance services. We begin by defining assurance and audit engagements. We discuss the reasons why there is a demand for audit and assurance services. We also introduce some of the assurance and audit terms that will be used throughout the text. We then go on to differentiate betw...
Chip Masters has asked Ron McLellan for audited financial statements of McLellan’s Shoes. Ron has heard about tax audits, efficiency audits, and financial statement audits. Are they all the same thing? Ernie explains to Ron that there are several services that people call “audits” that are different from financial statement audits. However, all the...
Explain why there is a demand for audit and assurance services. In this section, we will provide an overview of the key financial statement users and their require-ments. This is followed by a description of why these users may demand an audit of the financial statements. Next, three theoretical frameworks that have been used to encapsulate these s...
In the case of a company, investors generally read the financial statements to determine wheth-er they should invest in or buy, hold, or sell shares in the entity being reported on. They are interested in the return on their investment and are concerned that the entity will remain a going concern into the foreseeable future. Investors may also be i...
Suppliers may read the financial statements to determine whether the entity can pay them for goods supplied. They are also interested in whether the entity is likely to remain a going concern (that is, it is likely to continue to be a customer of the supplier) and continue to be able to pay its debts as and when they fall due.
If customers rely on the entity for their business, they may read the financial statements to determine whether the entity is likely to remain a going concern.
Lenders may read the financial statements to determine whether the entity can pay the inter-est and principal on their loans as and when they fall due.
Employees may read the financial statements to determine whether the entity can pay their wages or salaries and other benefits (for example, vacation pay). They may also be interested in assessing the future stability and profitability of the entity, as this affects their job security.
Governments may read the financial statements to determine whether the entity is complying with regulations and paying a fair amount of taxation given its reported earnings, and to gain a better understanding of the entity’s activities. An entity in receipt of government grants may provide a copy of its financial statements when applying for a gran...
The general public may read the financial statements to determine whether they should asso-ciate with the entity (for example, as a future employee, customer, or supplier) and to gain a better understanding of the entity, what it does, and its plans for the future.
Financial statement users and their needs, as outlined in the previous section, are many and varied. There are a number of reasons why some or all of these users would demand audited financial statements. The primary reason is to reduce information risk, which is the risk that users will rely on incorrect information to make a decision. The causes ...
Most financial statement users do not have access to the entity under review. This makes it difficult to determine whether the information contained in the financial statements is a fair presentation of the entity and its activities for the relevant period.
Most financial statement users do not have the accounting and legal knowledge to enable them to assess the complex accounting and disclosure choices being made by the entity.
Management has an incentive to disclose the information contained in the financial state-ments in a way that helps them achieve their own objectives—for example, to present their perform ance in the best possible light. Users may find it difficult to identify when manage-ment is presenting biased information.
Financial statement users are concerned with the reliability of the information contained in the financial statements. As they use that information to make decisions that have real con-sequences (financial and otherwise, such as assessing the future viability of the company), it is very important that users are able to rely on the facts contained i...
Ron tells Ernie that he has no remote users, such as shareholders or lenders, and his business is not very complex. He is the owner and the manager of McLellan’s Shoes and therefore has no com-peting incentives. For all these reasons, he has never felt the need to purchase an audit to assure users of the reliability of his business’s financial info...
The reasons for demanding audit and assurance services outlined in the previous section have led to the development of three theoretical frameworks that have been used to explain why audits occurred prior to regulations requiring that they be done, why users may demand an audit from a certain type of firm (for example, an international or an indust...
When an individual is an owner-manager of their own business, there are no competing incentives. The owner (principal) and manager (agent) are one. When an owner hires a man-ager to run the business on their behalf, potential conflicts arise. The manager has an incentive to provide favourable results. If there is one owner, they can easily monitor ...
Financial statement users require access to high-quality information to make a variety of decisions. That information is used to determine whether to hold or sell shares in the entity, whether to lend money to the entity, what rate of interest to charge the entity on money lent, and so on. The greater the perceived quality of the information contai...
Investors take on a risk when buying shares. If the entity fails, investors could lose the money invested. According to the insurance hypothesis, an audit is one way for investors to insure against at least part of their loss should the company they invest in fail. As auditors are required to take out professional indemnity insurance policies, they...
Cloud 9 is considering buying McLellan’s Shoes from Ron. In effect, it is considering investing in the business. If the business fails, the shareholders of Cloud 9 will lose their money. The new investors have incentives that are in competition with Ron’s. If Ron purchases an audit, he is providing assurance to the potential new investors about the...
In addition to the audit of company financial statements, assurance providers (including audi-tors and consultants) provide other assurance services (as outlined in section 1.3). The theo-ries outlined above are now being used to understand more about the demand for assurance of corporate social responsibility (CSR) disclosures, including environme...
Differentiate between types of assurance services. In this section, we provide an overview of the different types of assurance services that an assurance practitioner can provide. Common types of assurance engagements are financial statement audits, compliance audits, performance audits, comprehensive audits, and inter-nal audits. We will also brie...
Ron believes that his business has good, reliable financial records. Ron’s wife helps him keep tight control of the cash and other assets, and together they prepare some simple reports on a regular basis. Ron believes he knows exactly what is happening in the business and monitors the business’s cash flow and profit very closely. However, he has no...
An audit is a systematic process. It involves the gathering of evidence in a logical fashion to substantiate the balances and disclosures in the financial statements. All audits should follow the same process to ensure that professional standards are met. Regardless of the size or com-plexity of the entity, auditing principles remain the same. Some...
An audit is an assurance engagement performed to increase the confidence of financial state-ment users. Therefore, an audit is conducted to enhance the reliability and credibility of the information in the financial statements. However, it is not a guarantee that the financial state-ments are free from fraud and error. The limitations of an audit r...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
In your view, what should be contained in an audit report that conveys realistic explanations of the auditor’s role and the assurance provided by the audit report? Do you believe that auditors are correct in dismissing users’ expectations as “unrealistic”? Should auditors be trying to meet these expectations by rethinking their role and changing t...
Management ethics is generally understood as morality in relation to the practice of management. This book focuses on this subject, paying particular attention to its foundations and how ethics should be placed at the core of good management.1 This book does not seek to offer a list of the best ethical practices in management, nor to consider the
Jun 30, 2018 · Spanning 12 chapters, the book starts off with the key concepts and theories of business ethics, followed by important topics such as ethical leadership and corporate culture, corporate governance ...
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tiveness of risk management, control, and governance processes.” • Code of Ethics: The Principles and Rules of Conduct of the Code of Ethics define ethical behavior for a professional internal auditor. 11 Chapter 1 The Framework for Quality Assurance •
