After last several big accounting frauds that Unites States has gone through, auditors now carry a burden heavier than ever on their shoulders. Chap 5 introduced the different types of audit reports that can be issued when auditing a company’s financial statements, and also raised issues like loyalty to bosses and co-workers, expectation gap and internal control. When a fraud initiates, it is usually not because the involved person intends to commit a crime or he/she is immoral, instead, in most
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The inspection report that I read is the Report on 2009 Inspection of PricewaterhouseCoopers LLP issued by the Public Company Accounting Oversight Board on August 12, 2010. The nature of the PCAOB’s findings includes the follow aspects: 1) The Firm failed to obtain sufficient competent evidential matter to support its audit opinion. In example of issuer A, due to deficiencies in the Firm’s testing of certain key assumptions underlying the cash flow projections, the reasonableness of the
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Case 1.9 ZZZZ Best Company, Inc. 1. A review is similar to an audit but is less in scope and only provides limited assurance in regards to the presentation of the financial statement. This differs with an audit that gives reasonable assurance that no material errors or illegal acts are detected. The objective of an audit is to provide a reasonable basis for expressing an opinion regarding the financial statements taken as a whole. A review does not provide a basis for the expression of such
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The Minority Report Big brother is watching phenomenal has many people in the world feeling that their lives have be intruded upon and their privacy invaded. Imaging living in a world where everything you do is being recorded and watched by others including you most intimate private thoughts. The Short story “The Minority Report written by Phillip K. Dick in 1956 and later made into a movie directed by well know movie director Steven Spielberg in 2002. The Minority Report is based on that
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Introduction: Michael “Mickey” Monus managed to lose over $500 million dollars of investor money while seemingly building a successful discount chain. Using catchy slogans such as "Phar-Mor power buying gives you Phar-Mor buying power" enabled Monus to take his chain from 1 store to over 300 in 10 short years. This phenomenal growth was attributed to selling a lot of merchandise, purchased at rock bottom prices, to turn a small profit. The success was unusually rapid and even had Sam Walton, of
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explanations as he desires for the purposes of audit 1. Auditors are given a broad power to detect fraud by the management. According to Newton v Birmingham Small Arms Co Ltd2, the court observed that obtaining all information that required for audit report cannot be prevented by a company’s Articles of Association. In this case, the directors should have powers to form an internal reserve fund, which was not to be disclosed in the balance sheet and which should be utilized in whatever way the directors
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standards of auditing inventory and they have no contract with the bank. Yost is not responsible for Stuart Supply Co. fraud. (c) Yes the company signed a statement saying that’s the only way they can count inventory. Yost was not negligent in her audit report. The banks suit will not be successful. (d) Issues and outcomes would be the same. 5-20. (a) False, there is no contract between Martinson and Watts and Williams (b)True, if they can prove Watts and Williams knew about the misstatements (c)
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operations. The company is a publicly-held holding company trading on the New York Stock Exchange under symbol “PHM”. This essay will review the 2010 the Annual Report. Ernst & Young LLP, the independent registered public accounting firm that audited the Company’s consolidated financial statements included in the annual report issued the report on the effectiveness of PulteGroup, Inc. internal control over financial reporting as of December 31, 2010. It is their opinion that PulteGroup, Inc. maintained
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period under audit. c. Recording: whether it is recorded in the correct books of account. d. Whether it is for the business: whether it relates to the company’s ordinary transactions. iv. Opinion: this is expressed in an audit report submitted to the shareholders
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Homework #2 Chapter 4 4-8 If the partner is part of an audit engagement, they can not own stock for the company in which they are responsible for reporting the audit for, even if the client is out of another office. The audit report must be from an individual that is independent of the company. As for the professional staff members, they too can not own stock with any of the clients they conduct audits with, if they have been assigned to engagement or if they become partner of the office
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