company’s internal control procedures and present its findings in its annual audit report. This audit report must include an evaluation of whether the internal controls provide both a system of maintaining records that fairly and accurately reflect the company’s transactions, and a reasonable assurance that transactions are recorded in accordance with the preparation of GAAP financial statements. The audit report must also contain a description of any material weaknesses in the internal controls
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Board or PCAOB requires auditors of U.S. public companies be subject to external and independent oversight. Congress established the PCAOB in order to protect investors and the public interest by promoting accurate, informative, and independent audit reports. The PCAOB aims to improve audit quality, reduce the risks of auditing failures in the U.S. public securities market and promote public trust in both the financial reporting process and auditing profession. (PCAOB, 2012). During this case study I
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Form 8-K : is a report required to be filed by public companies with the United States Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. After a significant event like bankruptcy or departure of a CEO, a public company generally must file a Current Report on Form 8-K within four business days to provide an update to previously filed quarterly reports on Form 10-Q and/or Annual Reports on Form 10-K. Form 8-K is a very broad form used to notify investors
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[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] | In the case of Koss Corporation vs. Sachdeva and Grant Thornton, Koss Corporation, the plaintiff, alleges Sacheva, its former Vice President of Finance, committed fraud and embezzlement of company assets and Grant Thornton failed to properly conduct its audits and failed
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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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