Case Study: Enron Corporation and Andersen LLP Enron was one of the biggest companies, in the industry of electricity, natural gas, and paper manufacturing. The Company's revenues in 2000 were 111 billion, which made Fortune magazine Comrade crowned her the most innovative in the United States for six consecutive years. At the end of 2001, the company declared bankruptcy with approximately -65.5 billion dollar in debt and the company’s share price fell within a few weeks from a high of nearly ninety
Words: 2037 - Pages: 9
Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 AUDITING Q1) H.W.P. Private Ltd. Is having only two members H and W. During the audit of accounts for the year ended 31st March 2000, you as a auditor find that : a) H, who is in charge of purchases has introduced fictitious purchase bills of Rs 50 lakhs. b) W, who is in charge of sales has sold goods worth Rs 1 crore without bringing the same in
Words: 370 - Pages: 2
Do you know how Sarbanes-Oxley Act of 2002 (also known as SOX) came about? Many do not know the history behind this law that congress created. This research paper is about the history of the law, why it needed to be created, what it means for companies, the effectiveness of the law when it pertains to companies and the responsibilities of the auditors, the board of directors and the managers of the companies. Arthur Anderson was 23 and the youngest CPA in Illinois, he partnered up with Clarence
Words: 583 - Pages: 3
Who should be responsible and accountable? 1) Directors Both the director of Delima Enterprise are Encik Zayed and Puan Hashimah should be responsible for any ocassion that might happened to their company because of their ignorence. They need to plan very well on how to solve the issue regarding the outstanding matters issued by the Auditors. Besides, they need to gain more better qualifications, knowledge and skills to be more competent so that they could improvise their management system
Words: 422 - Pages: 2
BACKGROUND OF STUDY To be a developed nation, it is important for industries, and the country, as a whole, to achieve global competitiveness. In this respect, the IMP3 has adopted the overall theme ‘Malaysia - Towards Global Competitiveness’ and other countries also working towards on that. Industries must strive for global competitiveness through the transformation and innovation of the manufacturing and services sectors. According to The Small and Medium Industries Development Corporation (SMIDEC)
Words: 3727 - Pages: 15
comparable to the issues that can be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities. * A lack of proper communication with management, the internal auditor, and external auditors. * Inadequate resources including access to legal counsel and advisors. * Insufficient staff support. * Lack of exercising due diligence. * Unclear mission and undefined authority in the committee charter. * Insufficient
Words: 328 - Pages: 2
Strenths b. Weakness c. Recommendations for Improvements IV. Conclusion V. Works Cited I. Introduction The following internal report will list the requirements for LBJ Company to go public. The report was completed by an external accounting firm and is intended to advise LBJ Company of the strengths and weakness of their current internal controls. All weakness that are discussed include a recommendation to improve the internal controls of LBJ Company. II. Sarbens Oaxley
Words: 276 - Pages: 2
On December 4, 2013, the PCAOB re-proposed amendments to its standards that would improve the transparency of public company audits. The amendment is made up of two parts which includes disclosing names, locations, and the extent to which other independent accounting firms took part in the audit, as well as disclosing the name of the engagement partner in the auditor's report. Though both issues have definitely caused a stir in the accounting profession, disclosing the name of the engagement partner
Words: 757 - Pages: 4
ROLE OF AUDITORS Sections 138 to 148 of the Companies Act deal with accounts, audit and auditors. These provisions will have far reaching implications for the audit profession. In this article some important provisions contained in the companies act, 2013 are discussed. Understanding the definition of auditor An auditor is an independent professional person qualified to perform an audit. In accounting, an auditor is someone who is responsible for evaluating the validity and reliability
Words: 6723 - Pages: 27
former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship can put the client
Words: 2003 - Pages: 9
