...The Scientist Bill Gates And Microsoft Program Bill Gates was born in Seyatel Washington in 28 th October in 19855. Child bill grew up in a family with along history. He was a bright member of the local organizations and banks. Bill's intelligence and ambitions has appeared in an earlier time on his life he was clever at maths and science. So, his father interred him to lakeside school which knawn by its own outstanding academic. In this school Bill Knew the computer for the first time. In the spring, of 1968, the school decided to boy a computers. Computers in this time ware large and expensive. The school has been unable to buy a computer. So, it decided together some money from father as a donations. From that moment he become found of computer. He was student in the eighth grand at that time. He spent a lot of his time in the computer room at school. He was busy with writing programs and apply them to the point that he neglected his homework and absent from school in some cases. After that. Bill and his friend interested in computers and can make many programs like bisak he realized that the age of personal computer will began. Although Bill gates was clever and dose his best with computers, he faced great difficults in dealing with staff. He was impatient and faces of people quickly. Bill be lives that if you're smart and know how to use your inelegance, you can a chive the impossible. It is worth mention that Bill Gates chose Egypt as an Arab Country...
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...The Likeside Company: Auditing Cases AUDITING PROCEDURES AND AUDITING DOCUMENTATION: TESTING THE INVENTORY PURCHASING SYSTEM Art Heyman is employed as a staff auditor with the independent accounting firm of Abernethy and Chapman. For the first two weeks of December 2012, Heyman is asined to the Lakeside Company examination. During this period, he is to perform a number of testing procedures designed by Carole Mitchell, in-charge auditor on the engagement. Heyman recalled that several parts of the initial risk brainstorming involved inventory and merchandise purchases. At the present time, Heyman is beginning to analyze the transactions that occur in the client's merchandise procurement system. Within this testing, he is especially interested in determining the extent to which employees comply with control procedures while carrying out various required activities. This evaluation will influence the assessment of control risk and therefore, the nature, timing, and extent of substantive tests to be performed by the firm in this area. Lakeside leases a perpetual inventory record accounting system from DATA Processing System of Richmond, an outside service organization. The initial entries are made by the Controller's division of Lakeside, and on a weekly basis the transactions are uploaded through DATA Processing Systems' website. Reports are then generated, and one copy of the current inventory balances goes to Edward Thomas, who is responsible for acquiring merchandise, while...
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...The Lakeside Company Case Studies in Auditing Twelfth Edition John M. Trussel Dalton State College J. Douglas Frazer Millersville University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager: Carol O'Rourke Senior Operations Supervisor: Diane Peirano Printer/Binder: BindRite Graphics, Robbinsville Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright © 2012, 2008, 2005, 2003 by Pearson Education, Inc., publishing Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290...
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...Lakeside Auditing Case Study Case 1 Prepared by: January 27, 2011 1: An independent annual audit can provide credibility to information, and this could be very helpful for decision making. In this specific case, the owner of the Lakeside requires an independent CPA firm to perform an annual audit because the owner wants to show the public a “good-look” of its financial statements; since he would like to receive more capital by making his company public. In addition, good-looking financial statements of the company could provide good credit from the bank. To the lakeside company, the owner would like to provide audited financial statement to the bank to obtain the loan and receive the best possible interest rate. On the other hand, a decision by a bank loan officer about whether to make a loan to Lakeside Company and what rate of interest adequately compensates the bank for the level of risk assumed depends on an independent auditing report about lakeside’s financial reports. An auditing report about the company is reliable for the bank; it can significantly reduce the level of information risk. If the loan officer has assurance from the auditors that the company’s financial statements are prepared in accordance with GAAP, he or she will have more confidence in his or her assessment of business risk. By reducing information risk, the audit reduces the overall risk to the bank. 2: According to GAAS, the auditor must obtain a sufficient understanding of the entity and...
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...Audit Lakeside Case October 13, 2015 1. An engagement letter is an essential aspect in establishing an understanding between the client and the audit firm. This documentation is required in order to identify the objective and scope of the audit, outline the specific responsibilities of management and the audit firm, identify inherent limitation of the audit, ascertain the applicable financial reporting framework, and the expected forms Engagement letters are necessary in settling disputes between auditor and management. When management signs the written engagement letter, they are entered into an executor contract with the auditor. In the engagement letter presented by Abernethy and Chapman, the audit firm clearly outlined the following responsibilities for Lakeside management: 1) The financial Statements 2) Establish and Maintain internal controls over financial reports 3) Identify and ensure compliance with laws and regulations applicable to its activities 4) Make all financial records and related information available to auditors 5) At the end of the engagement, providing a representation letter Abernethy and Chapman outlined the following responsibilities for the auditor: 1) Audit financial statements for purpose of establishing an opinion on the financial position, results of operations, and cash flows in compliance with GAAP. 2) Obtain reasonable, not absolute, assurance that financial statements are free of material misstatements, in...
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...DISCUSSION QUESTIONS 1. Both the company’s bank and Lakeside owners would require an independent CPA firm to avoid any biases and upkeep the independence in auditing. 2. Under generally accepted auditing standards the audit is to be performed by a person or persons having adequate training which is interpreted to mean ‘technically qualified and experienced in those industries in which their clients are engaged” (Arens, Elder, Beasley, & Hogan, 2010, p. 35). This interpretation is based on recent court cases. With that information in mind this engagement should not be accepted. Care industry is significantly different than electronics so I would believe an audit in each industry would be considerably different. The auditor should certainly discuss the lack of expertise and possibly consider having a contract or new hired personnel to assist with such an audit. 3. Provided the employees truly have an understanding of how to achieve a profit sharing bonus, auditors may be concerned with the decision making of the employees. employees loyalty would be torn between providing the most independent unbiased information for the customer and the information that will provide their family with additional income. 4. A firm does face independence issues with auditing the output of systems the designed and installed regardless if the company is publicly traded or not. As the creator of the system the company may be biased as to how well the system works. The assumption that they created...
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... To The Board of Directors of The Lakeside Company, We have audited the accompanying balance sheet of The LakeSide Company as of December 31, 2011, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our qualified audit opinion. We believe the value of Lakeside’s $186,000 investment in its latest store has been impaired based on guidelines established by the FASB. The store is adjacent to a shopping centre which has proven to be unsuccessful. Due to the continuing failures of the shopping centre, the Lakeside store’s fate appears to be uncertain...
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...using Free on Board (FOB) shipping point, inventory the company may have on consignment with another business, and inventory stored off the premises. Confirming the existence of inventory through your observations addresses the occurrence and completeness assertions as well. However, the auditor must always bear in mind that he is there not to participate in the actual counting of inventory but to rather observe. But before an auditor can pursue this audit procedure, he must first have to gather enough information about the company under audit’s inventory procedures. Aside from that, he must also identify inventory locations, have a tour of the business, and forbid movement of inventory. Observation of inventories is a generally accepted auditing procedure. The independent auditor who issues an opinion when he has not employed them must bear in mind that he has the burden of justifying the opinion expressed. A decision to observe less than...
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...of the second week of class. Please call the Associate VP for Student Support- 872-3178. My intention is to honor all legitimate requests. The deadline is necessary to allow sufficient time for a meaningful solution. Exceptional circumstances will also be considered at any time during the semester. Student Evaluation: Tests – 2 tests (mid-term and final- 100 pts each) 200 pts Cases: 6 total cases Group Cases: You are leader- 1@ 50 pts 50 pts You are group member- 2@25 pts 50 pts Individual Cases- 3 @ 33.33 pts 100 pts Total Points 400 pts Textbooks: Arens, Elder and , Auditing & Assurance Services: An Integrated Approach 15th ed., Prentice-Hall, 2014 Trussel, John M. and Frazer, J. Douglas The Lakeside Company: Case Studies in Auditing, 12th edition, Prentice-Hall , 2012 Student Learning Objectives- The student will be able to: 1. incorporate professional standards into case analyses and essay responses. 2. perform as a group leader and as a group member to organize work and present it in a professional manner. 3. develop solutions in light of both general business ethics and the AICPA Professional Code of Conduct. 4. demonstrate facility with basic audit steps and the documentation of such work. 5. demonstrate how...
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...Case 1 - Exercise 1 Abernethy and Chapman Fraud Risk Factors Client: Lakeside Company Prepared by: Date: 09/12/2015 List the fraud risk factors that the CPA firm might encounter if they accept this audit engagement. Be sure to include a discussion of all items that will probably require special attention during the audit. For each of these fraud risk factors, indicate how the auditor should follow up on each potential problem if the engagement is accepted. Use the following format: |Fraud Risk Factors |Auditor Follow Up | |Managements have incentive to overstate income with cash |If the engagement is accepted, the auditor should perform testing | |bonuses tie to revenue. |and review in all areas within the balance sheet, income statement, | | |and other financial statements. | |Rogers has an incentive to hire Abernethy and Chapman as their|If the engagement is accepted, Abernethy and Chapman should consider| |auditor, because they audit the primary bank that he does |all independence and related party issues that may arise. By | |business with. This is a fraud risk factor because it may |checking the primary bank for Rogers, Abernethy and Chapman may not | |cause an independency issue with the auditor and client...
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...1.) | 1987 | 1986 | 1985 | 1984 | Current Ratio | 2.41 | 1.40 | 1.56 | .93 | Quick Ratio | 1.40 | .60 | .77 | .15 | Debt to Assets | .68 | .66 | .64 | .83 | Debt to Equity | 2.16 | 1.98 | 1.75 | 4.88 | Accounts Receivable Turnover | 32.5 | 116.78 | 49.75 | 52.72 | Inventory Turnover | 3.23 | 4.38 | 5.14 | 5.88 | Shown above are some of the key ratios for Crazy Eddie during the period 1984-1987. Some of the red flags these ratios reveal include the steady decline of inventory turnover rates from 1984-1987 which could indicate lost sales, excess inventory, or ineffective buying. Another red flag is the accounts receivable turnover figures. The drop from 116.78 in 1986 to 32.5 in 1987 is most likely a result of the poor credit policies Crazy Eddie had in place for its customers. 2.) Several audit procedures could have led to the detection of some of the accounting irregularities involved in the financial statements of Crazy Eddie. For (a) the falsification of inventory count sheets, the auditors could have visited more than one site of a Crazy Eddie store and performed full physical counts of inventory that didn’t allow Eddie Antar to stock up one location with inventory which he knew would be audited. Also, the auditors could have checked the inventory that was in place with the amounts on the inventory sheets and obtain proper documentation from vendors and confirming with them the proper inventory that was ordered. With regards to (b) the bogus debit memos...
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...Financial Statement Audit 8. Financial Statement Audit 3. Compliance 9. Financial Statement Audit 4. compliance 10. Compliance 5. Operational 11. Operational 6. Financial Statement Audit 12. Compliance CHAPTER 2 MC 2-15 A) 2 B) 1 2-16 A) 3 B) 2 C) 1 2-17 A) 2 B) 2 C) 3 Simulation Questions 2-19 A) engagement performance F) leadership responsibilities B) monitoring G) Monitoring C) Engagement Performance H) acceptance & continuation of clients D) Leadership Responsibilities I) Leadership Responsibilities E) Relevant and ethical requirements J) Human Resources 2-22 A) U.S. generally accepted auditing standards B) International Auditing Standards C) PCAOB D) PCAOB E) U.S. generally accepted auditing standards F) U.S. generally accepted auditing standards G) PCAOB H)...
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...Audit procedures which an auditor should perform when planning attendance at a Company stock take. 1.Review and planning: The auditor must review prior year’s working papers to enable himself to familiarize with the nature volume and location of inventories. Consideration must be made with regard to the controlling and recording procedures over inventory and the timing of the count. 2.Problem identification and reliance: The must identify problem areas in relation to the system of internal control and decide whether reliance can be placed on internal auditors. This also assists in risk assessment and timing audit procedures. 3.Risk and materiality: Assessment of inherent, control and detection risks is necessary for a comprehensive stocktaking audit programme and this will assist the auditor to establish materiality levels before undertaking the stock count. 4.Inventory held by third parties: Arrangement must be made to ensures that third party holding inventories confirms .Depending on materiality of the inventory held the auditor should also consider the integrity and independence of the third party and whether it is necessary to arrange for other auditors to observe the count or whether it is sufficient to obtain another auditor’s report on the adequacy of the third party’s systems or merely to inspect relevant documentation held at client place. 5.Expert assistance: Assessment must be made by the auditor regarding the nature of the...
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...Audit Term: Fall 2013 COURSE: AP/ADMS 4552 3.0 Sections A and B Information Systems Audit Schedule First day of class: Section A: Wednesday, September 11, 2013 11:30 AM – 2:30 PM, Location: HNE 030 Section B: Thursday, September 12, 2013 7:00 PM – 10:00 PM, Location: HNE 032 REQUIRED COURSE TEXT/READINGS: • Hall, James A., (2011), Information Technology Auditing, 3e, Mason: South-Western Cengage Learning (Referred to as “IT Audit Text” in the Readings List for each class) • Additional material as listed in the course outline. This includes articles referenced by links, readings from books that were required for prerequisite courses, cases and assignment details posted on our web site. • CICA Assurance Handbook, as available online from York University library, (referred to as “Handbook” in the Readings List for each class). Selected readings are from: [Note this book is available on reserve at the business library in the Schulich building if you do not have a copy.] • Arens, A., R. J. Elder, M. S. Beasley and I. B. Splettstoesser-Hogeterp. 2011. Auditing: The Art and Science of Assurance Engagements, Canadian 11th Edition, Pearson Prentice Hall: Toronto. (Referred to as “Audit Text” in the Readings List) References for the 12th Canadian edition of the Audit text (as an alternative to the 11th edition) will be provided separately as a document on the course web site. Warnings: Photocopying more than 10% of a textbook...
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...Adelphia Communications Corporation was a cable company, whose owners, John Rigas and his son Timothy,” were charged with bank fraud, securities fraud, and conspiracy.” (Reference #4) They were charged with all fifteen accounts of securities fraud. Another son of his was acquitted, as well as the former treasurer, Michael Mulcahey. “John and Timothy now face 30 years in prison because of the bank fraud charge.” (Reference #4) “They were charged with hiding over $2.3 billion dollars’ worth of debt in the company,” (Reference #4) as well as stealing from there investors. John became so greedy with the money he was taking, that his son became worried about it and tried to limit him to only taking out one million a month. The prosecution had two witnesses that they used in order to bring down the Rigas’, and they were Adelphia executives, James Brown and Karen Crosniak. They testified and tried to say that they weren’t aware of what they were doing, but ignorance of the law doesn’t mean you can get away with what you do. The effects of what they did have impacted the company so much that they had to move to a new location, and they operate under bankruptcy protection. There are many ethical issues that pertain to this issue, as well as many laws that were broken. First, what some call “creative accounting”, this is when a company tries to do something with their accounting reports to make the company look very profitable so that they can attract new investors. This is...
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