Discuss a recent (or not-so recent) fraud that you have read about, either in the textbook or in the news. Were there red flags present that should have alerted someone that the fraud was occurring? What could have been done differently in order to prevent the fraud or detect it sooner?
Do CPA firms have a responsibility to perform audits of charitable organizations for reduced or lower than normal audit fees? If auditors perform audits of not-for-profits at discounted fees, what impact is this likely to have on the quantity and quality of audit effort the auditor puts into the audit? Other than audit fees, wha
According to Health Management Case: Please discuss question below. Explore the vulnerabilities that may result because of trust built through working relationships. In the current environment, what situations create these vulnerabilities for auditors? To answer question above please focus on the relationship between the f
Discuss the Lincoln Savings and Loan audit failure related to lack of industry knowledge. Consider whether there are any industries for which audits do not require particular industry expertise on the part of the audit partner. How does rotation of the audit partner (as required by SOX and the SEC) interact with the need for ind
Discuss the issue of an audit client's business model and the concept of risk in an audit. In today's environment (rather than the time the NextCard case actually occurred), how should the risk of the client's business impact the audit plan and process?
Discuss your thoughts on Madoff's auditor and the lack of awareness any regulators had that such a large company was audited by a sole-practitioner firm. Why did that happen? Could it happen again? Consider that Madoff was a "service provider" to various companies that outsourced investment activities to Madoff. If the auditors
Case Study: Roles of Management in Regulatory Compliance You are preparing for the final exit meeting with Anthony's Orchard. You have probably met with management at various stages throughout the audit. Now it is time to meet with the senior management and the board to review and provide the audit findings and conclusions. Y
Based on the information presented in the application form linked below, determine whether the factors are likely to increase, decrease, or have no effect on the risk of material misstatement. Do these factors indicate inherent risk or control risk? In the provided fields in the application form, mark your answers as Yes (Y) or
Please help with the following problem: By now, most folks have seen at least one or two investigation shows - real or dramatic. A fraud investigation has to be conducted by professionals with the interests of the firm, the victims, and also the suspected perpetrator in mind. How does a fraud investigation get started? What
1. Let's discuss the issues that were identified in the findings. Please select only one or two so others have an opportunity to contribute as well http://www.corpwatch.org/article.php?id=9649 2. How should a company conduct itself when foreign laws and/or norms are different than U.S. laws? For example, bribery may be a
The Overall Manufacturing Company has been experiencing losses and believes that the round heat exchanger division is the problem. They hope that discontinuing it will improve their overall results. The special equipment dedicated to round heat exchangers has no other use and no salvage value. Discontinuing the line will disc
The Academic Departments send a list of Suggested Courses to the Faculty. The Academic Departments receive the list of Suggested Courses back from the Faculty with any comments. The Academic Departments hold a meeting to discuss the Suggested Courses and the latest Course Catalog received from the Registrar. The Academic Departm
Identify and describe ONE internal control in a company (home Depot). How does the control relate to the ONE of the five elements of an effective internal control system (the control environment, risk assessment, control activities, information, and communication and monitoring)? What internal control documentation is used, if a
Please use fraud item below to respond. Which of the following internal controls would likely be most effective in helping to prevent fraud? a. Hidden surveillance cameras b. Secret cash counts c. Covert email monitoring d. Fake surveillance cameras I selected (b) secret cash counts but it was incorrect. The correct
How does the understanding of internal control differ for assertions where the auditor plans a lower assessed level of control risk approach versus a primary substantive approach? How would you as the auditor, document this understanding of an entity's internal controls? Is there such a thing as a "good" control or a "bad" contr
Review Table 3-1 in Ch. 3 of Auditing and Assurance Services. How does the relationship of materiality and opinion affect the way you work with a client? The Table 3-1 Relationship of Materiality to Type of Opinion is attached.
Brown, CPA, is auditing the financial statements of Big Z Wholesaling, Inc., a continuing audit client, for the year ended January 31, 20X2. On January 5, 20X2, Brown observed the tagging and counting of Big Z's physical inventory and made appropriate test counts. These test counts have been recorded on a computer file. As in pr
To assess properly the internal controls in place at Harrison Enterprises, you have found there are three major objectives that an entity should follow in designing an effective internal control system: - reliability of financial reporting - efficiency and effectiveness of operations - compliance with laws and regulations
Please describe and discuss what a false asset evaluation in a financial statement fraud is?
What is the benefit of evaluating an internal control system in phases? Explain your answer.