section 301.4 of Sarbanes-Oxley Act of 2002, each audit committee shall establish procedures for complaints regarding accounting, internal accounting control, and auditing matters, and the anonymous complaints regarding questionable accounting or auditing matters. However, in this case, the WorldCom Company did not have the procedures for anonymous complaints, so Cynthia Cooper decided to go over Sullivan’s head and reported her findings to the audit committee. This was a huge gamble for her and was
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Quest was a communications company that was rapidly growing in 1999 and 2000. It would consistently meet its aggressive revenue targets and was a great company for its investors. After announcing that they would be merging with US West, their stock price dropped significantly. In order to prevent any further drops in stock price, high pressure was placed on Qwest’s employees to meet their high revenue targets. Soon afterwards, Qwest’s stock price had increased significantly, to higher than its original
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Case Studies to accompany Auditing and Assurance Services in Australia by Gay and Simnett Prepared by Renee Radich and Philip Ross [pic] McGraw-Hill Australia [pic] A Division of The McGraw-Hill Companies Copyright © 2002 McGraw-Hill Australia Pty Limited Additional owners of copyright are named in on-page credits. Apart from any fair
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interest of the company In this case, one of the directors of Delima Enterprise is Encik Zayed. He had breach his duty to exercise power in good faith. Encik Zayed engaged the external Auditor Aziz & Co (Chartered Accountant), to perform statutory audit. The Auditor expressed their intention to qualify the Financial Statements due to several unresolved issues. His trying to negotiate with the Auditors to unqualified the report, however, the auditor did not agree. So, Encik Zayed was planned to terminate
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Homework #2 1. There are potential agency conflicts in the exchange between HP director Sam Ginn and McKinsey experts. McKinsey consultants wanted the merger between HP and Compaq to occur because they might have been able to collect higher fees. Therefore, they immediately squashed any doubts and gave advice for the merger to happen, even if carrying out such an acquisition would have destroyed value for HP shareholders. 2. For Patricia Dunn, the past successful consolidation mergers
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AUDIT DELAY AND THE TIMELINESS OF CORPORATE REPORTING: MALAYSIAN EVIDENCE Raja Adzrin Raja Ahmad Khairul Anuar Bin Kamarudin Second Draft: August 2003 Please do not quotes - comments welcome ABSTRACT This paper investigates the determinants of audit delay in Malaysia. The sample comprises 100 companies listed in Kuala Lumpur Stock Exchange during the period 1996-2000. Descriptive statistics indicates the audit delay is more 100 days for the five years under study with a minimum standard
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Assignment 2: Accounting and Audit Enforcement ACC 599 – Graduate Accounting Capstone QUESTION #1 After so many scandals in regards to financial frauds, Sarbanes-Oxley Act Section 404 mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document, test and maintain those controls and procedures to ensure their effectiveness. Non-for-profit healthcare organizations do not hold themselves to the same standards as the for-profit
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Significant case, most leading case in lack of corporate governance * Holding royal’s bank account (not merely responsibility toward the stakeholder but the society) * Oldest merchant bank * A single handed activity by Nick Leeson caused the bank bankrupted Although Leeson is the one responsible for Barings’s bankrupt, however it’s not possible if other parties in the bank do their duties. Leeson only took advantage since others in the organisation not carrying out their tasks
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Auditing & assurance Case 1.2 1. Consider the principles, assumptions and constraints of Generally Accepted Accounting Principles. Define the revenue recognition principle and explain why it is important to users of financial statements. According to the revenue recognition principle, revenues are recognized when they are realized or realizable, and are earned. Thus, it does not matter when the cash is received. To break that definition down, revenues are realized when products are exchanged for
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SKILLS AUDITS “A key piece of information an organisation needs to improve is to know what skills and knowledge the organisation requires and what skills and knowledge the organisation currently has’ (www.cognology.biz/sawhatis.htm). 1. Introduction What is a Skills Audit? A skills audit is essentially a process for measuring and recording the skills of an individual or group. The main purpose for conducting a skills audit in an organisation is to identify the skills and knowledge
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