...accounting fraud and auditor legal liability c a S eS inc lu de d in t hiS Se ction 4 89 99 4.1 Enron Corporation and Andersen, LLP Analyzing the Fall of Two Giants . . . . . . . . . . . 4.2 Comptronix Corporation 4.3 Cendant Corporation . . . . . . . . . . . . . . . . . . . . . . Identifying Inherent Risk and Control Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . 111 119 127 137 Assessing the Control Environment and Evaluating Risk of Financial Statement Fraud . . . . . . . . . . . . . . . . . . . . . . 4.4 Waste Management, Inc. 4.5 Xerox Corporation 4.6 Phar-Mor, Inc. Manipulating Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluating Risk of Financial Statement Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting Fraud, Litigation, and Auditor Liability instructor resource Manual — do not coPy or redistribute instructor resource Manual — do not coPy or redistribute enron corporation and andersen, llP analyzing the fall of two giants inS tr uc t ional o b je c t ive S [1] c a s e 4.1 Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt [2] [3] To help students understand what happened at Enron Corporation and how Andersen’s involvement with Enron led to the accounting firm’s downfall. To enhance students’ appreciation of the importance of understanding an audit client’s core business strategies. To develop students’...
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...Auditing Cases instructor resource Manual f our th e d itio n Mark S. Beasley Frank A. Buckless Steven M. Glover Douglas F. Prawitt do not coPy or redistribute Prentice hall Upper Saddle River, New Jersey ta b l e s e ct ion o f co n t e n t s 1 2 client acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . S o l u tionS inc lu de d in t h iS Section 1.1 Ocean Manufacturing, Inc. 3 The New Client Acceptance Decision s e ct ion Understanding the Client’s Business and assessing risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 S o l u tionS inc lu de d in t h iS Section 2.1 Your1040Return.com Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.2 2.3 2.4 Dell Computer Corporation Evaluation of Client Business Risk Flash Technologies, Inc. Asher Farms Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Risk Analysis and Resolution of Client Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Understanding of Client’s Business Environment s e ct ion 3 Professional and ethical issues . . . . . . . . . . . . . . . . . . . . . . . 59 S o l u tio nS inc lu de d in t h iS Section 3.1 3.2 3.3 3.4 3.5 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should...
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...STUDY LIST & ESSAYS FOR THE FINAL Fall 2013 AICPA and PCAOB standards on computers can be used for the whole exam, keep time limits in mind Numbers in red are incomplete or need additional information. Some in red may not need additional information, but if additional information can be provided that will help with essays add it. 1. Code of Professional Conduct as it relates to the cases that we discussed -Rule 101 Independence-A member in public practice shall be independent in the performance of professional services. Fact and Appearance -Rule 102 Integrity and objectivity-In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others. -Rule 201 General Standards-A member must comply with the following standards in all engagements: Professional competence Due professional care Planning and supervision Sufficient relevant data used -Rule 202 Compliance with Standards- A member who performs auditing, review, compilation, management consulting, tax, or other professional services must comply with standards: Auditing standards board and PCAOB (Issue statements on auditing standards) -Rule 203 Accounting Principles- A member shall not express an opinion or state affirmatively or negatively that financial statements are presented in conformity with GAAP if there is any departure...
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...Financial Statement Fraud ACCT 710: Assignment 6-2 Shannon Baxley David Welch September 24, 2011 Table of Contents Abstract………………………………………………………………………………………3 Introduction…………………………………………………………………………………..3 Literature Reviews……………………………………………………………………………5 Conclusion…………………………………………………………………………………..16 References…………………………………………………………………………………...18 Abstract This paper describes financial statement fraud (FSF) and how it may occur within companies. The reason of this study was to research FSF detection and prevention. Research was also done to determine any influences that SAS (Statement on Auditing Standards) No. 82 and SAS No. 99 had on audit programs and the analysis from external auditors. Thirteen scholarly journals were reviewed in order to analyze SAS No. 82 and No. 99 and to show ways to detect and prevent fraud. Results found that managers and/or auditors can create fraud intentionally and unintentionally. There are ways to prevent fraud and educating managers and/or auditors is a good way to make sure fraud does not occur. Introduction Financial statement fraud (FSF) involves the premeditated issuing of phony information on a financial statement (financial statement fraud, 2011). FSF occurs when a company exaggerates assets or revenue, or when it devalues liabilities and expenses (financial statement fraud, 2011). The American Institute of Certified Public Accountants or AICPA defines fraudulent financial reporting as “intentional misstatements or omissions...
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...and communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the institution (or the body that administers it) has sent a Statutory Educational notice to Copyright Agency Limited (CAL) and been granted a licence. For details of statutory educational and other copyright licences contact: Copyright Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone: (02) 9394 7600. Website: www.copyright.com.au Reproduction and communication for other purposes Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of this publication may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or retrieval system, without the written permission of McGraw-Hill Australia including, but not limited to, any network or other electronic storage. Enquiries should be made to the publisher...
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...Sciences Economiques et de Gestion THESE DE DOCTORAT EN SCIENCES ECONOMIQUES Thème Microfinance et Pauvreté : Quantification de la Relation sur la population de Tlemcen Présentée et soutenue publiquement par : Mr. SMAHI Ahmed Sous la direction du : Pr. BENHABIB Abderrezak (U. Tlemcen) JURY Professeur Bendi Abdeslem Professeur Benhabib Abderrezak Professeur Derbal Abdelkader Professeur Ait Ziane Kamel Docteur Maliki Samir B.E Docteur Baba Abdelkader Université de Tlemcen Université de Tlemcen Université d’Oran C.U.Khémis Méliana Université de Tlemcen Université de Mostaganem Président Encadreur Examinateur Examinateur Examinateur Examinateur Année Universitaire : 2009/2010 Remerciements Au terme de ces années de recherche, mes premiers remerciements s’adressent au professeur Abderrezak Benhabib, mon directeur de thèse qui m’a apporté un précieux soutien dans ce travail, en s’avérant toujours disponible et exigeant pour l’achèvement de ce travail. A vrai dire, le choix de ce thème lui revient en toute sincérité vu l’intérêt qu’il portait à l’enrichissement de la thématique celle de la pauvreté. Je remercie Mr Benhabib aussi pour son soutien et ses conseils, la confiance qu’il m’a accordée et la grande liberté qu’il m’a laissée dans la réalisation de ce travail. Certes, nous avons appris beaucoup de Mr Benhabib, en lui attestant le sens de la communication, de la comprehension, de l’orientation, de l’analyse, et donner le plus d’information dans les domaines qui suscitent...
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...internal control Qver Financial Reporting CASES INCLUDED iN THIS SECTiON 1. Simply Steam, Co. 155 Evaluation of Internal Control Environment 2. Easy Clean, Co. 155 Evaluation of Internal Control Environment 3. Red Bluff Inn & Café 165 Establishing Effective Internal Control in a Small Business 4. St. James Clothiers 169 Evaluation of Manual and IT-Based Sales Accounting System Risks 5. Collins Harp Enterprises 177 Recommending IT Systems Development Controls 6. Sarbox Scooter, Inc. 185 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 7. Société Générale 195 How a Low-Risk Trading Area Caused a $7.2 Billion Loss case5.!-2 Easy Clean/Simply Steam, Co. Evaluation of Internal Control Environment Mark S. Beasley • Frank A. Buckless • Steven M. Glover • Douglas F. Prawitt INSTRUCTIONAL OBJECTIVES 1] To reinforce aspects relevant to the internal control environment. 2] To illustrate the degree of judgment involved in making internal control environment evaluations. 3] To provide students experience in making subjective evaluative judgments. 4] To provide a forum to discuss inquiry techniques as well as inquiry as a form of audit evidence. 5] To provide students direct experience with, and discovery of, issues surrounding the control environment, making inquiries, and the framing (e.g., positive or negative) of information provided by management. 6] To illustrate...
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...The Australian Financial System in the 2000s: Dodging the Bullet Kevin Davis* Abstract The global financial crisis (GFC) occupied only a quarter of the decade of the 2000s but, because of its severity and implications for future financial sector development, dominates the decade. The Australian financial system coped relatively well with the GFC, raising the question of whether there was something special about its structure and prior evolution which explains that experience. This paper reviews Australian financial sector performance and development over the decade, then provides a more detailed overview of the Australian GFC experience and its implications, and considers explanations for the Australian financial sector resilience. 1. Introduction The Australian (and global) financial system entered the first decade of the millennium preparing for a systems crisis, in the form of the Y2K computer scare, which on 1 January 2000 passed without event. But towards the end of the decade, the financial sector was faced with, arguably, its most serious systemic crisis ever, which the Australian financial system and economy weathered relatively well compared with advanced nations in the northern hemisphere.1 While the GFC occupied only one-quarter of the past decade (from mid 2007), it prompts the questions which this review must seek to answer. Was there something about the structure and evolution of the Australian financial system which explained its resilience in the face...
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...Invest. Innovate. Inspire. For a new India. ANNUAL REPORT 2014-15 India is at the threshold of a new era of growth and opportunity. This is driven by increasing economic activity, ongoing ‘Make in India’ initiatives and a demographically well-placed, aspirational society. Reliance Industries Limited (RIL) continues to be a partner in India’s ongoing journey towards economic and social well-being, and remains committed to investing in and innovating for India. RIL is striving to meet and exceed global benchmarks in product quality and customer service with inspiring ideas and strategic investments. From the manufacturing landscape to high-growth consumer service sectors, RIL is achieving superior outcomes that facilitate India’s drive for global leadership. RIL is delivering industry-leading performance through consistent efficiency in operations and prudent configuration of assets. RIL is making sizable capital investments, focusing on technology and expanding its level of services from the hydrocarbons sector to consumer businesses. RIL innovates for existing businesses and also focuses on developing new business models to deliver g g g y significant value for its growing stakeholder fraternity. In this effort, it collaborates with o s with leading global institutions to help usher in a n era of possibilities. global new is growing o RIL’s focus is to continue growing as a respons responsible organisation, thereby e inspiring progress in...
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...Journal of International Business Studies (2006) 37, 285–320 & 2006 Academy of International Business All rights reserved 0047-2506 $30.00 www.jibs.net PERSPECTIVE A quarter century of Culture’s Consequences: a review of empirical research incorporating Hofstede’s cultural values framework Bradley L. Kirkman1, Kevin B. Lowe2 and Cristina B. Gibson3 1 Department of Management, Mays Business School, Texas A&M University, College Station, TX, USA; 2Department of Business Administration, Joseph M. Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, North Carolina, USA; 3Graduate School of Management, University of California, Irvine, California, USA Abstract Since Geert Hofstede’s Culture’s Consequences: International Differences in WorkRelated Values (Sage, 1980) was published, researchers have utilized Hofstede’s cultural values framework in a wide variety of empirical studies. We review 180 studies published in 40 business and psychology journals and two international annual volumes between 1980 and June 2002 to consolidate what is empirically verifiable about Hofstede’s cultural values framework. We discuss limitations in the Hofstede-inspired research and make recommendations for researchers who use Hofstede’s framework in the future. Journal of International Business Studies (2006) 37, 285–320. doi:10.1057/palgrave.jibs.8400202 Keywords: Hofstede; cultural values; cross-cultural management Correspondence: Bradley...
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...Preface During the past century, the impact of mathematics on humanity has been more tremendous than ever since Galileo's agonizing fight against the old establishment and the revolution which physics experienced after Newton's subsequent synthesis. At the beginning of the last century, mathematical ideas and techniques were spread to theoretical and applied physics by the influence of two of the greatest mathematicians of all times, D. Hilbert and H. Poincar6, being then at the zenith of their careers. Their ability to establish very deep at first glance often hidden connections between a priori separated branches of science convinced physicists to adopt and work with the most powerful existing mathematical tools. Whereas the 20th century really was the century of physics, mathematics enjoyed a well deserved reputation from its very beginning, so facilitating the huge impact it had subsequently on humanity. This reputation has been crucial for the tremendous development of science and technology. Although mathematics supported the development of weapons of mass destruction, it simultaneously promoted the advancement of computers and high technology, without which the substantial improvement of the living conditions humanity as a whole has experienced, could not have been realized. In no previous time the world has seen such a spectacular growth of scientific knowledge as during the last century, with mathematics playing a central role in most scientific and...
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...Section A: Audit Practice Part b (i): Why is the audit of cash important part of the audit? From an auditing standpoint, cash is an important account because cash transactions affect all other business and financial processes. Businesses acquire cash by selling goods or services, disposing of fixed assets, or acquiring debt or equity. The same businesses put their cash to use through purchasing, paying employees, and buying inventory. Audits are an important part of business. Cash audits check that money has been handled properly, and performance audits ascertain whether employees are doing their jobs properly. Corporations are likely to undergo tax audits to ensure proper tax reporting and withholding. Audits may be performed in-house by management or human resources, by a third-party consulting firm hired specifically to perform the audits or by IRS agents who are auditing company tax records. The audit of cash is considered an important part of an audit mainly due to almost all business transactions will be ultimately settled through the cash accounts, the audit of cash accounts also assists in the verification of other asset and liability accounts as well as revenue and expenses. Some of the investor relies on the accuracy of the cash account to evaluate the financial health of the company. They use current asset which include the cash account to compute several financial measures. Other than that, cash is the highly liquid asset in a company and it is an area of high...
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...Directeur de th`se e M. Jean Tirole Directeur d’Etudes ` l’E.H.E.S.S. a JURY M. Denis Gromb, Mme. Ulrike Malmendier , M. Brunos Biais, M. Jacques Cr´mer, e Professeur, London Business School (Rapporteur) Assistant Professeur, Universit´ de Californie, Berkeley (Rapporteur) e Directeur de Recherche au C.N.R.S., Universit´ de Toulouse 1 e Directeur de Recherche au C.N.R.S., Universit´ de Toulouse 1 e Remerciements J’ai ` l’´gard de Jean Tirole un dette incommensurable : pour l’accueil chaleureux dont il m’a fait b´n´ficier ` a e e e a chacune de mes venues ` Toulouse, pour l’incroyable richesse des discussions que nous avons pu avoir tout au long a du d´veloppement de cette th`se, pour le soutien qu’il m’a toujours apport´ et pour l’extraordinaire qualit´ de ses e e e e conseils scientifiques, je luis suis infiniment gr´. e David Thesmar m’a fait d´couvrir ce qu’´tait r´ellement la recherche en ´conomie et surtout, a su m’ouvrir les e e e e yeux sur ce qu’´tait la bonne recherche en ´conomie. Sans lui, et ` de tr`s nombreux ´gards, cette th`se n’existerait e e a e e e pas. Sa cr´ativit´, son enthousiasme, sa curiosit´ tout comme son amiti´ ont ´t´ un moteur formidable, aussi bien au e e e e ee quotidien que sur le long terme. Ma dette ` son ´gard est immense. J’esp`re profond´ment que notre collaboration a e e e pourra se prolonger aussi longtemps que possible ! Je r´alise pleinement la chance que j’ai pu avoir de travailler, sur les chapitres 2 et 3 de cette th`se, avec e e Augustin...
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...Addis Ababa, Ethiopia Brand Preference And Its Antecedents Brand Preference and Its Antecedents: A Case of Footwear Products By: Getaneh Zelalem Advisor: Getie Andualem (PhD) A Research Project submitted in partial fulfillment of the Requirement for the degree of Master of Marketing Management Addis Ababa University School of Commerce Post Graduate Program Department of Marketing Management January, 2012 Addis Ababa, Ethiopia Brand Preference And Its Antecedents Brand Preference and Its Antecedents: A Case of Footwear Products By: Getaneh Zelalem Approved by Board of Examiners ____________________________ Name ____________________________ Name ____________________________ Name _______________ Signature ______________ Signature _____________ Signature Brand Preference And Its Antecedents Statement of Certification This is to certify that Getaneh Zelalem Emiru has carried out his research work on the topic entitled Brand Preference and Its Antecedents. The work is original in nature and is suitable for submission for the award of Masters Degree in Marketing Management. ________________ Advisor: Dr. Getie Andualem Date: ____________________ Brand Preference And Its Antecedents Statement of Declaration I hereby declare that Brand Preference and Its Antecedents project is wholly the work of Getaneh Zelalem. I have carried out the present study independently with the guidance and support of the research advisor, Dr. Getie Andualem. Also any other...
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...Knowledge-Based Systems 30 (2012) 67–77 Contents lists available at SciVerse ScienceDirect Knowledge-Based Systems journal homepage: www.elsevier.com/locate/knosys Bankruptcy prediction models based on multinorm analysis: An alternative to accounting ratios Javier de Andrés ⇑, Manuel Landajo, Pedro Lorca University of Oviedo, Spain a r t i c l e i n f o a b s t r a c t In this paper we address the bankruptcy prediction problem and outline a procedure to improve the performance of standard classifiers. Our proposal replaces traditional indicators (accounting ratios) with the output of a so-called multinorm analysis. The deviations of each firm from a battery of industry norms (computed by nonparametric quantile regression) are used as input variables for the classifiers. The approach is applied to predict bankruptcy of firms, and tested on a representative data set of Spanish firms. Results indicate that the approach may provide significant improvements in predictive accuracy, both in linear and nonlinear classifiers. Ó 2011 Elsevier B.V. All rights reserved. Article history: Received 9 February 2011 Received in revised form 2 October 2011 Accepted 3 November 2011 Available online 30 December 2011 Keywords: Bankruptcy prediction Classification techniques Nonparametric methods Quantile regression Accounting ratios 1. Introduction Under the current economic conditions, bankruptcy early warning systems have become tools of key importance in order to guarantee the...
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