In this paper Blokdijk et al. investigate the Planning Materiality (PM) values used by Dutch auditors performed by Big 5 and non-Big 5 firms between 1998 and 1999. They study whether there is a relationship between Planning Materiality, the client’s size, the client’s control environment, the client’s rate of return on assets and the client’s complexity. They also study whether Planning Materiality values differ between Big 5 and non-Big 5 firms. Given the vagueness of guidance for using certain
Words: 533 - Pages: 3
due to shortage of fund. The requirement of the company’s Audited Financial Statements for the last two years by the bank, was when Encik Zayed realized that the company had not performed the statutory audit. In July, 2006 Encik Zayed engaged the external auditor Aziz & Co and the auditor expressed their intention to qualify the financial statement due to several unresolved issues. However Encik Zayed and his wife tried to negotiate with the auditor not to qualify the Financial Statement. Encik
Words: 391 - Pages: 2
1a) I believe that on a scale from 0-100 the cut off should be about 75 to be considered substantial doubt. I chose 75 because it should definitely be at least 50, there should be more of a doubt than not that the company will not continue. Along that reasoning to me substantial means it should be more than the borderline, 50, of continuing and not continuing so 75 seems like it is at a point where the auditor substantially believe that’s more likely than not the client they are auditing with cease
Words: 1073 - Pages: 5
Andy Mandel 5/21/13 1. a. In my opinion, on a scale of 0-100 where 0 is “absolutely will remain in existence” and 100 is “absolutely will fail”, the term “substantial doubt” to me would be the number 65. I chose this number because as an investor, I would consider this the threshold between possible and likely. In my mind, anything above 65 would create more than substantial doubt that the company is in trouble and would have to use extraordinary measures to fix their situation. b. After
Words: 1213 - Pages: 5
EXECUTIVE SUMMARY This report is prepared to gain insights on the reasons for the collapse of Hastie Group Limited which is known as the top international designer, maintainer and installer of technical services to the infrastructure and building sector. Hastie has well established operations in Australia, the United Kingdom and the Middle East. The report begins with the introduction about the company and how and when it collapsed. The report further includes the major points extracted from the
Words: 1767 - Pages: 8
Hagel, Jack. "The long-term effect of doing more with less: Doing less." Journal of Accountancy . (2013): n. page. Web. 22 Jan. 2013. The long-term effect of doing more with less: doing less It is no secret that companies and small businesses have been forced to lay-off or terminate employees in order to cut costs due to the recent financial crisis. Experts are now researching the long-term effects of these practices. When you lay-off or fire employees you are essentially distributing
Words: 466 - Pages: 2
TASK 1 Memo to my supervisor Hi XYZ I was wondering to bring into your attention three major types of costs when quality considerations decisions are taken. They comprises as first would be failure cost (internal or external failures), second would be appraisal cost and last but not the least prevention cost. Keeping in view failure costs, few of amongst them would be major dropdown and spills in equipment. Assumingly, if equipment costs $4 million and we have no intention of replacing it for
Words: 365 - Pages: 2
reports and confronted Mr. Bobbitt about the findings. Mr. Bobbitt in the audit committee would take a look and see if the findings that Mrs. Cooper were valid. After finding that the findings were valid she then contact Mr. Farrell and he did an external investigation. After further investigation that the mid-level accounting directors Mr. Normand had confessed to just going along with what Mr. Sullivan had explained to him about the reports because he was afraid to tell anyone and wanted to resign
Words: 349 - Pages: 2
The purpose of an independent auditors’ report is to communicate the opinions of the independent auditors about the financial statements of the company they audited to the public. However, there have been an issue on the communication of the independent auditors’ report as the message intended to be brought forward by the preparers are misinterpreted or confused by the users (Asare and Wright, 2009). The reason for such misinterpretation and confusion by the users of the independent auditors’ report
Words: 1258 - Pages: 6
‘key learning event or moment’ in my life, I chose to focus and analyze on my recent position as an Internal Audit Senior. I chose this for the reason that, my experience before joining the Bermudez group primarily focused on the functions of External Auditing. During my time as an Internal Auditor in my organization, I faced many obstacles that lead to my disappointment of not moving forward in my career to date. I did not fully understand the functions of Internal Auditing, which required
Words: 381 - Pages: 2
