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Similarity between IFRS and GAAP
Pros and cons of gaap vs ifrs
Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP in-clude all of the following except
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Petronas Dagangan Berhad (PDB) is a company that supplies petroleum products and service stations in Malaysia. PDB is divided into three segments, which are retail segment, commercial segment and other segment. The core of the businesses is retail, commercial, liquefied petroleum gas (LPG) and lubricants. PDB offers a range of products and services in them.
This assignment has three primary objectives with the first being to classify the types of audit opinion issued by the auditors of Petronas Dagangan Berhad. Audit opinion can be found on audited statements and auditor is required to state the opinion whether the statements have followed the generally accepted accounting principles (GAAP) or not. There are four types of audit opinion,
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Lin et al., (2006) stated that when the audit committee has low or no independency, it is believe that the quality and credibility of financial reporting can be badly affected. The independent audit committee directors are expected to ensure better financial reported. Therefore, hypothesis 2 is developed.
3. Audit Committee’s Financial Expertise and Earnings Management There is a statement in Egypt the Corporate Governance Code, that in the board must has at least one member of the audit committee that has relevant experience in financial. However, it does not state that a financial expert is someone who has a professional qualification from any professional accountancy bodies. Therefore, this article is going to examine the relationship between that audit committee’s financial expertise and earnings quality. Therefore, hypothesis 3 is developed.
4. Audit Committee Meetings and Earnings
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in arriving at audit opinion. Obtain audit evidence that is sufficient and appropriate is one of the most important steps that auditors should make and that is crucial in shaping the overall standard governing audit evidence. Audit evidence should be properly documented to ensure that the objective of the audit was achieved. If the objectives were not achieves, the working papers must contain documentation of failure. Also, the use of experts could be considered as audit evidence and auditors must know when their expertise is exceeded. This study therefore suggested that further empirical work should be done on the impact of evidence on audit
Auditors do not provide audit opinions for different levels of assurance. Therefore, auditors consider providing more or less assurance when modifying evidence for engagement risk to be unnecessary. However, auditors should be professionally responsible to accumulate additional evidence, assign more experienced personnel, and review the audit more thoroughly, particularly when a client poses a higher than normal degree of engagement risk. The auditor should also modify evidence for engagement risk when high legal exposure and other potential actions affecting the auditor
Businessmen of the Gilded Age like Carnegie, Rockefeller, Morgan, and Vanderbilt were captains of industry. Industrialists economically improved the United States by contributing the most money, which was made from the successes of their companies. In addition, they were financially beneficial to communities and set an example of philanthropy and lifestyle for others to follow. Moreover, they resorted to unscrupulous tactics not only for their financial gain, but for America’s financial gain as well.
To help accounting professionals easily navigate through 50-plus years of unorganized US generally accepted accounting principles (GAAP) and standards the Trustees of the Financial Accounting Foundation approved the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification.) By codifying authoritative US GAAP, FASB will provide users with real-time and accurate information in one location. Concurrently, FASB developed the FASB Codification Research System; a web-based system allowing registered users to electronically research accounting issues. Since 2009, the codification became the single source of nongovernmental authoritative GAAP.
In the early 1600’s Queen Elizabeth granted the East Indian Company (EIC) its first charter. The EIC was the company that was to handle all the trading of goods in the East Indies (Carp, 7-8). The Company did so well that it helped with Europe’s economy, and “helped to support the government through payment of customs duties” (Carp, 8). Anyone who had any part to do with the EIC would accumulate a great amount of wealth. The EIC acquired most of its wealth through the trading of, “spices, silk, cotton, opium, gold, silver, and tea across enormous distances, paying out generous dividends to its shareholders” (Carp, 8). This was the reason for mostly everyone who had a part in the EIC would accumulate a great amount of wealth. Everything was
The purpose of an auditor's job is to make an assertion. In order to do so, evidence must be collected to authenticate said opinion. AS 1105 details the characteristics of audit evidence and the steps necessary to obtain an appropriate level of audit evidence. If the risk of material misstatement is high, the amount of required evidence collected also increases. Quality over quantity is another precept of audit evidence. The higher the quality, the less evidence is needed; whereas increasing the amount of substandard evidence collected does not bolster a position. The relevance and reliability are also two metrics used to evaluate audit evidence; both are required characteristics and must be
Audit quality is one of the most prominent factors on determining the effectiveness of tax auditing. Audit quality is proven by the capacity of office in order to provide useful tax auditing findings and recommendations. The auditor is required to meet the performance standards which able to perform well in work by providing useful audit findings and recommendations for improvement. The office’s capability to correctly plan and perform the audit findings is considered as a proxy of audit quality. Therefore, the high audit quality could lead to an effective tax
Seeba & Associates, Inc. is a certified public accounting firm that is located in San Jose, California. Their areas of expertise include audits, reviews and compilations, bookkeeping/write-up, tax planning, tax preparation, consulting services, estate planning, and more. Their qualified staff can help their clients with the day-to-day tasks associated with bookkeeping. Seeba & Associates, Inc. is dedicated to excellence.
Introduction Within the current crisis of confidence in the public accounting profession after the Enron debacle and series of high profile failures of financial services firms, the issue of ‘audit expectation gap’ has never been more important. Though it would take an enormous amount of effort to address these issues, I will argue that tremendous amounts could be done in order to close the gap. In this essay, I will discuss some of these issues and in particular the strategies to reduce the gap. Definitions Various definitions have been proposed for the audit expectation gap.
Audit is a process to evaluate and review the accounts and financial statement objectively. We can divide it into internal auditors and external auditors. Internal auditors have a inner knowledge of business process. Auditor has access to the much confidential information and all levels of management. But they may lose their judgement and they are not acceptable by the shareholder. “The overall objective of the external auditors is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements in acco...
No matter auditors work with technology or not, the most important thing in process of auditing is evidence. The basic framework for the auditor understands of evidence and its use to support the auditor's opinion on the financial statement. In reaching an opinion on the financial statements, the evidence gathered from the audit procedure is used to determine the fairness of the financial statements and the type of audit report to be issued. The characters of paper audit evidence are:
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
In the last three decades, a New Public Management (NPM) as a general set of financial and managerial reforms in the municipal sector has been adopted in many countries. The most difficult challenges in the historical backdrop of the NPM execution are the alterations in management of public asset and governance policies. The management of public sector asset reform considered as a central point and change the public sector organizations progressively (Grubisic et al. 2008). Meanwhile, BPK RI (Badan Pemeriksa Keuangan Republik Indonesia) as an audit board in Indonesia, tends to issue qualified opinion on the financial statement of local governments (34% of local government receive unqualified opinion, 60% obtain qualified opinion, adverse and disclaimer opinion are at 2% and 4%, respectively on semester I, 2014 report). Contrasting to its connotation, qualified opinion is not the best result in audit which means information within the audit is not complete or most matters have been dealt with adequately, except for a few issues. The challenges of public asset management in Indonesia is a major concern that caused the local government cannot afford unqualified opinion. Understanding those challenges will help the governments to plan strategies and propose alternative solutions. Therefore, this essay argues that the barriers to effective public asset management by the Indonesian local government involves the perception, government control, and human resource limitations to its influence.
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.
PricewaterhouseCoopers (PwC)is the world’s largest accounting firm and ranks as one of the giants in the global professional services arena. PwC employs over 146,000 people with 766 offices in 150 countries. The Firm is led by Samuel A. DiPiazza, CEO, and is headquartered in New York City on Madison Avenue. Its clients include 84 percent of the Fortune Global 500 companies. Price Waterhouse and Coopers & Lybrand merged in 1998, which made the combined firm the top player in public accounting. In the 2007 fiscal year, PwC had gross revenue of over $25 billion. Structured as a limited liability partnership (LLP), the private company would rank in the low 300s on the Fortune 500 companies.
Ranked among the FORTUNE Global 500® largest corporations in the world, Petroliam Nasional Berhad, most commonly known as PETRONAS, is a Malaysian state-owned oil and gas company which ventures into a wide range of petroleum activities. Established in the year 1974, PETRONAS was incorporated alongside the enforcement of the Petroleum Development Act 1974 (Malaysian Explorer, 2012). Today, being owned entirely by the Malaysian government under the Ministry of Finance, PETRONAS is entrusted with the responsibility to manage the entire nation’s hydrocarbon resources (Rig Zone, 2013) and to ensure the sustainability and orderliness of the country’s oil and gas industry is prolonged.