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MKT 431 WEEK 2 Trends and Conditions Paper

1. What are the value and significance of COSO, SOX 404, SAS 112, and other pieces of legislation affecting the role of the accountant and auditor? Do these regulations protect the auditor or client more? If so, why?2.Here is a great question from your text for Chapter 11. Identifying potential fraud is a primary role of an auditor. Please see the following and identify each one as A) fraud or B) an error. What additional procedures would you perform on those identified as fraud? The following misstatements are included in the accounting records of the Joyce Manufacturing Company:A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper who records cash receipts and accounts receivable. He failed to record the transactions.A material sale was recorded on the last day of the year even though the goods were not shipped until 3 days later.Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed.The controller approved a payment to a consulting firm owned by his sister. The consulting firm did not actually perform any services for the company.The shipping clerk included several additional valuable items to a shipment that were not included in the customer’s order and were not invoiced to the customer. The shipping clerk has an arrangement with the customer to share the proceeds from sales of the additional items shipped.Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened.3. How might you maintain the trust of your clients while practicing professional skepticism? How does this come into play while auditing?4. Distinguish between a positive and a negative confirmation and state the circumstances in which each should be used. Why do CPA firms sometimes use a combination of positive and negative confirmations on the same audit? How is this useful evidence for an audit?Need 100+ words for each questions

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