Audit Essays

Thank you for taking the time to meet with Arnold Anderson, CPA (lead auditor); Darlene Wardlaw, CPA (engagement manager) and me last week. During our meeting, you and your team informed us that your “old auditors, Smith & Smith, CPAs, unexpectedly withdrew from the engagement” (University of Phoenix eCampus, ACC/546, …

The Olympus Corporation scandal is one of the biggest scandal’s to break. Olympus Corporation, the Japanese maker of cameras and medical imaging equipment is a huge corporation that lasted over two decades. 1- Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who …

Question 1 a) Identify the factors that would affect the preliminary assessment of inherent risk and control risk at Queen Island Dairy. The preliminary assessment of risk, also known as the risk assessment phase, is the initial step in an audit that includes gaining an understanding of the client and …

The fraud risk factors identified in this Appendix are examples of such factors that may be faced by auditors in a broad range of situations. Separately presented are examples relating to the two types of fraud relevant to the auditor’s consideration–that is, fraudulent financial reporting and misappropriation of assets. For …

In 1981, Delima Enterprise was founded by Encik Zayed in conducted trading and supplying related product including manpower supplies to oil and gas industries. In 2004, Delima Enterprise incorporated as Delima Enterprise Sdn Bhd. It has two principal shareholders and controlling director who is Encik Zayed and Puan Hashimah. Both …

1. The following is a listing of all corrective actions noted during recent ORSE from 08 Aug 2014. 2. The below are all the areas audited with the corrective actions listed below: Discrepancy Root Cause Corrective Action The MDR did not have a process in place to audit records, no …

Issues 1. In David Sokol’s position, after discovering the suspicious items in JWP’s accounting records, would you have taken a different course of action than he did? 2. What measures can and should be taken to make it easier for corporate employees to “blow the whistle” on a fraudulent scheme they …

1. The Global Organizational Hierarchy (GOH) can include all of the following except: a. Divisions b. Risks c. Business Units d. Activities 2. An entity’s contributors may include: a. Auditors but not contacts b. Contacts but not auditors c. Neither auditor nor contacts, only TeamRisk administrators d. Both auditors and …

Issue 1. After discovering the suspicious items in JWP’s accounting records, should he have taken a different course of action than he did? 2. What measures can and should be taken to make it easier for corporate employees to ‘‘blow the whistle’’ on a fraudulent scheme they uncovered within the …

The auditor should determine the appropriate types and mounts of evidence needed to be satisfied that the client’s financial statements are fairly stated as well as the client maintained effective internal control over financial reporting. The auditor should make sure the procedures they choose can provide persuasive evidence which means …