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Kudler Accounting Information System

In: Business and Management

Submitted By alibaba2015
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According to the Sarbanes - Oxley Act and Statement of Auditing Standards, Apollo, a publicly-traded company, should have an audit committee overseeing its internal financial reporting integrity. This audit committee would oversees the audits, both internal and external. Once found evidence of fraudulent accounting, external auditors must communicate the findings within Apollo with the committee or other governing body. External auditors also report the effect that the fraud may result with Apollo.

We would plan and conduct our audit with professional skepticism. We are required to recognize the condition or events that suggest if fraud may exist. Based on the audit risk assessment we conduct, we develop audit procedures to obtain reasonable assurance that substantial frauds have been found. It is expected that the auditor to implement procedures that will lead to the discovery of errors or fraud without significant impact on the financial statements can not be held responsible for undetected such irregularities. The auditor should communicate with the management of his client. He should ask the management information concerning any significant fraud or error has been detected in order to detect key problems that could lead to certain activities, the implementation of audit procedures more than usual However the auditor faces the risk inevitable that some significant errors to be detected, even if the audit is planned and done properly.

Type accounting fraud
The most common type of fraud, the audit found that revenue recognition errors. Revenue recognition is the earnings report, the company's revenue. Some companies may incorrectly report the income is not fully available, the circumstances under which happens to pay a year's time, all the income the company reported in the first place. The report will acknowledge or correct reported revenue of more than one…...

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