regions, FCB was in ideal niche position to serve the international integrators, freight forwarders, and major airlines within Asian region. However, as highlighted in this case, the auditors had identified several suspicious findings in a financial audit engagement. In 2006, Mr. Chuah, an auditor from Kencana & Associate s had noticed some irregularities of accounting records in FCB, which may possibly be another fraud case after Media Com and Blue Vital. These irregularities could be created
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Kudler Fine Foods Risk and Internal Control Evaluation Sonji A. Hart ACC 542 December 8, 2012 Irene Branum Kudler Fine Foods Risk and Internal Control Evaluation According to Hunton et al. (2004), the COSO report states the five objectives to an internal control system are (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring. Upon management’s review of the flowcharts submitted to Kudler Fine Foods from Learning
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RESTORING TRUST AFTER FRAUD: DOES CORPORATE GOVERNANCE MATTER? David B. Farber The Eli Broad Graduate School of Management Michigan State University N232 Business College Complex East Lansing, MI 48824-1122 e-mail: farberd@msu.edu (517) 432-0615 First Draft: January 2003 Current Draft: January 7, 2004 This paper is adapted from my dissertation completed at Cornell University. I would like to thank my committee chairperson, Julia D’Souza, for her unwavering support and guidance in the development
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MINI-CASES | |Question | |Case |1 |2 |3 |4 |5 |6 |7 | | | | | | | | | | |1. Andersen: An Obstruction of Justice
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1. One purpose of audit documentation is to help plan the audit. This is important due to the fact that much of the necessary audit information required for planning an audit is included in audit documentation. These documents may include information about internal controls, the audit program, and the results of previous years’ audits. An additional purpose of audit documentation is to provide data for producing the correct type of audit report. The evidence accumulated from this data helps
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7. A perceived lack of integrity caused irreparable damage to both Andersen and Enron. How can you apply the principles learned in this case personally? Generate an example of how involvement in unethical or illegal activities, or even the appearance of such involvement, might adversely affect your career. What are the possible consequences when others question your integrity? What can you do to preserve your reputation throughout your career? A perceived, or even likely more detrimental to
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Overseeing Board. Restating from PCAOB's website, it is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection. With SOX come new costs, concerns, and confusion
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Goodman & Goodman, a CPA firm, has audited Toys City, Inc., for the last three years. Toys City, Inc., is a regional retailer of children's toys and games. Each of the three previous audits resulted in unqualified opinions. Toys City's year end is December 31, and Goodman & Goodman has agreed to provide the audit report on March 1, 1998, ten days before the annual board of directors meeting. Bert, the manager from Goodman & Goodman in charge of the Toys City engagement, recalls that last year there
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Goodman & Goodman, a CPA firm, has audited Toys City, Inc., for the last three years. Toys City, Inc., is a local retailer of children's toys and games. Each of the three previous audits resulted in unqualified opinions. Toys City's year end is 31 December, and Goodman & Goodman has agreed to provide the audit report on 1 March, 2010, ten days before the annual board of directors meeting. Mr. Lam, the manager from Goodman & Goodman in charge of the Toys City engagement, recalls that last year
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their lack of internal control. They failed to do so. 2. List three types of consulting services that audit firms have provided to their audit clients in recent years. For each item, indicate the specific threats, if any, that the provision of the given service can pose for an audit firm’s independence. c. Bookkeeping – This has potential conflict because as an auditor you may not audit your own work as in depth as you would someone else’s. d. Tax Advice/ Tax Return Prep. – This has
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