Page 52 - DCOM509_ADVANCED_AUDITING

Unit 3: Introduction to US-GAAP

Notes
An additional COBIT-based application allows the audit to be managed in real-time with
the auditee’s version of the application. As a result of the continuous near real-time
interaction, the auditor, auditee and other management share a better understanding of
the risk in their environment.
The COBIT-based audit management application runs in a Windows environment. Client
interaction requires a network connection.
Conclusion
Based on its successful implementation of COBIT at different client sites, Security Audit
and Control Solutions is finalising a customised version of Audit and Risk Manager that
will be used in 12 countries in Africa. This version will help operational managers use the
COBIT methodology to manage their risks.
Question:

Analyse the case and write down the case facts.

Source: http://www.isaca.org/Knowledge-Center/cobit/Pages/Security-Audit-and-Control-
Solutions.aspx

3.4 Summary

 Within the accounting profession, there have been challenges to develop a set of standards
that are generally accepted and universally practiced.
 Thus far, the main debate in setting accounting standards is “Whose rules should we play
by, and what should they be?” While the answer is unclear, users of financial statements
and reporting must find methods that has an universal objective, that allows “Grapes for
Grapes” comparisons that clearly, fairly, and completely prepares a company financial
statements.
 For years GAAP has been the common set of standards and procedures for the U.S., the
core for establishing a principle of reporting but now IFRS an international friendly
financial reporting system has become popular for its use globally.

 Securities and Exchange (SEC), established by the federal government to help create and
regulate financial information presented to stockholders.

 American Institute of Certified Public Accountants (AICPA), an organization of practicing
Certified Public Accountants (CPA’s) established to contribute to the effort.

 And the major operator Financial Accounting Standards Board (FASB), objective is to
establish and improve standards of financial accounting and reporting for the guidance
and education of the public, which includes issuers, auditors, and use of financial
information.

 Transpired by the London-based International Accounting Standards Boards (ISAB); for
international purposes U.S GAAP or (IFRS) International Reporting Standards, also known
as IGAAP are two rules accepted for financial reporting. Requirements for IFRS.
 U.S. GAAP accounting for EPS is with more details on the computational guidance on
calculations similar to IFRS accounting for EPS which is calculations of year to date that
varies.

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