Planning and Performing a Financial Statement Audit in Accordance With Government Auditing Standards

Audit Guide ◽  
2018 ◽  
pp. 25-50 ◽  
Keyword(s):  
Financial Statement ◽  
Financial Statement Audit ◽  
Auditing Standards ◽  
Government Auditing

scholarly journals The Consideration Of Fraud In A Financial Statement Audit: Some Study Questions

2007 ◽  
Vol 3 (1) ◽  
pp. 37-44
Author(s):  
Eddie Metrejean ◽  
Lou X. Orchard ◽  
Dwight Sneathen Jr
Keyword(s):  
Financial Reporting ◽  
Major Part ◽  
Task Force ◽  
Financial Statement ◽  
Accounting Students ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Audit ◽  
Auditing Standards

In October 2002, the Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 99, Consideration of Fraud in a Financial Statement Audit in response to recommendations from the Fraud Task Force. SAS No. 99 is intended to improve auditor performance during audits and to increase the likelihood that the auditors will detect fraudulent financial reporting if any is present. Since fraud awareness is such a major part of any audit, accounting students should be well versed on the content of SAS No. 99. However, not all accounting students read SASs in detail. Then how do accounting educators get this important content to these students?

scholarly journals Auditor Perceptions Of SAS 99: Do Two Expectation Gaps Still Exist?

2011 ◽  
Vol 20 (4) ◽  
Author(s):  
Linda B. Specht ◽  
Petrea Sandlin
Keyword(s):  
Financial Statement ◽  
Public Confidence ◽  
Certified Public Accountants ◽  
Font Size ◽  
Expectation Gap ◽  
Financial Statement Audit ◽  
Auditing Standards ◽  
Illegal Acts ◽  
Public Accountants ◽  
Sas 99

<p class="MsoBlockText" style="margin: 0in 0.5in 0pt;"><span style="font-style: normal; font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">In 1988, the Auditing Standards Board released nine standards intended to narrow the previously identified &ldquo;expectation gap&rdquo;&mdash;a gap between the expectations of financial statement users and certified public accountants (&ldquo;Expectation Gap I&rdquo;).<span style="mso-spacerun: yes;">&nbsp; </span>A 1992 study of auditor perceptions of two of those standards dealing with errors, irregularities, and illegal acts of clients, revealed that there existed a second expectation gap, one between the standard setters and practicing CPAs (&ldquo;Expectation Gap II&rdquo;). Since then, the ASB has released two successor statements intended to address the issue of auditors&rsquo; responsibility to consider fraud in a financial statement audit.<span style="mso-spacerun: yes;">&nbsp; </span>This study examines auditor perceptions of the more recent pronouncement and reveals general skepticism among respondents regarding its effectiveness in promoting Congressional and public confidence in the auditing profession; i.e., little confidence that it will serve to reduce Expectation Gap I.<span style="mso-spacerun: yes;">&nbsp; </span>It also reveals the continued existence of Expectation Gap II.<span style="mso-spacerun: yes;">&nbsp;&nbsp; </span></span></span></p>

Developing Student Abilities to Recognize Risk Factors: A Series of Scenarios

2002 ◽  
Vol 17 (1) ◽  
pp. 57-67
Author(s):  
Carolyn A. Strand ◽  
Sandra T. Welch ◽  
Sarah A. Holmes ◽  
Steven L. Judd
Keyword(s):  
Risk Factors ◽  
Financial Statement ◽  
Red Flags ◽  
Professional Skill ◽  
Fraud Risk ◽  
Financial Statement Audit ◽  
Auditing Standards

Misappropriation of assets is an expensive and growing problem. However, detecting this type of fraud is very difficult. Green and Calderon (1996) claim that externally observable risk factors can help signal the likelihood of fraud. Awareness and timely recognition of these “red flags” might improve an individual's ability to assess the potential vulnerability of an organization to fraud. Contained herein is a case consisting of five scenarios that deal with the risk factors identified in Statement on Auditing Standards (SAS) No. 82, Consideration of Fraud in a Financial Statement Audit (AICPA 1997). Throughout the case, you will be confronted with a number of clues that may suggest employee wrongdoing. This case is designed to help you develop your knowledge and professional skill regarding the recognition of fraud risk factors. Although textbooks, and other sources, frequently list various risk factors, these same clues may not be as obvious to you when they actually occur in an organization.

Instructional Case: Lakeview Lumber, Inc.: A Study of Auditing Issues Related to Fraud, Materiality and Professional Judgment

1999 ◽  
Vol 14 (3) ◽  
pp. 497-515 ◽  
Author(s):  
Deborah L. Lindberg
Keyword(s):  
Financial Information ◽  
Professional Standards ◽  
Financial Statement ◽  
The Internet ◽  
Professional Judgment ◽  
Net Income ◽  
Compensation Scheme ◽  
Financial Statement Audit ◽  
Auditing Standards ◽  
Analytical Review

Lakeview Lumber, Inc. involves several auditing and accounting issues, including concepts related to Statement on Auditing Standards (SAS) No. 82, Consideration of Fraud in a Financial Statement Audit (AICPA 1997). The case highlights management's potential motivation to manipulate net income in response to a bonus compensation scheme. Lakeview Lumber also provides a framework for discussion of issues related to professional judgment, audit supervision and materiality. More specifically, the case emphasizes the professional judgment required in the estimation of selected account balances and in determining the accounting treatment of transactions related to unusual or extraordinary events. The concept of materiality, in conjunction with the interpretation and application of professional standards, is also discussed. In addition, the case gives students an opportunity to perform analytical review, prepare common-size statements and use the Internet to find professional pronouncements and financial information.

scholarly journals FRAUD PENTAGON THEORY DALAM FINANCIAL STATEMENT FRAUD PADA PERUSAHAAN TERDAFTAR di JAKARTA ISLAMIC INDEX (JII) PERIODE 2014-2017 (Perspektif F-Score Model)

2019 ◽  
Vol 4 (2) ◽  
pp. 128-138
Author(s):  
Faiz Rahman Siddiq ◽  
Agus Endrianto Suseno
Keyword(s):  
Financial Stability ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Purposive Sampling ◽  
Auditing Standards ◽  
Score Model ◽  
Financial Need

Financial statement fraud biasa disebut dengan kecurangan laporan keuangan yang merupakan kesengajaan dalam melakukan kelalaian dan kesalahan ketika  membuat laporan keuangan dengan penyajian yang tidak sesuai pada prinsip akuntansi berterima umum. Statement on Auditing Standards (SAS) No.99 menjelaskan tentang salah saji yang berhubungan dengan auditor dalam mengaudit laporan keuangan terhadap fraud diantaranya adalah (1) salah saji dari kesalahan suatu laporan keuangan merupakan suatu  pengungkapan yang direncanakan guna menipu pengguna laporan keuangan, (2) penyalahgunaan aset atau istilah lain pencurian dan penggelapan sering dijadikan sebagai salah saji dalam laporan keuangan. Fraud pentagon theory merupakan pengembangan dari teori fraud sebelumnya yaitu fraud triangle (Cressey, 1953) dan fraud diamond (Wolf and Hermanson,2004). Populasi penelitian ini adalah perusahaan yang tergabung dalam Indeks JII (Jakarta Islamic Index) pada tahun 2014-2017. Teknik pengambilan sampel dengan menggunakan metode purposive sampling. Metode analisis data yang digunakan dalam penelitian ini adalah analisis regresi linear berganda. Financial statement fraud dalam penelitian menggunakan perspektif F-Score Model. Hasil penelitian ini adalah pressure (Financial Stability, dan Financial Target), dan Opportunity (Nature of Industry) berpengaruh terhadap financial statement fraud. Sedangkan Pressure (External Pressure dan Personal Financial  Need), Rationalization (Change in Auditor), Competence (Change of Director) dan Arrogance (Frequent Number of CEO’s Picture dan Dualism Position) tidak berpengaruh terhadap financial statemnt fraud.

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