Audit Essays

The Securities and Exchange Commission (SEC) found that Bally Total Fitness Holding Corporation, a nationwide commercial operator of fitness centers, fraudulently accounted for three types of revenues it received from members. The SEC also charged the audit firm and six partners for their roles in the accounting violations. Visit the …

Established in 1998 by Chris Richard, Gemma Wood and Lauren Hulme, Richard, Wood and Hulme LLP (“RWH”) is a financial services firm offering audit and taxation services to its clients with a mission of delivering excellent service and improving clients’ internal controls. Being a “team player” is an essential trait …

Synopsis Ernst Young audited the pharmaceutical wholesaler CBI Holding Company, Inc., in the early 1990s. In 1991, Robert Castello, CBIs owner and chief executive, sold a 48 stake in his company to TCW, an investment firm. The purchase agreement between Castello and TCW identified certain control-triggering events. If one such …

1. An auditor is performing an analytical procedure that involves developing common-size financial statements. This technique is referred to as: a. Vertical Analysis 2. Assertions that have a meaningful bearing on whether an account balance, transaction class or disclosure is fairly stated are referred to as: a. Relevant assertions 3. …

1. Opal Pty Ltd (Opal) is a family-owned company operating chemist shops in Perth. A large portion of the sales transactions are done in cash. Opal claims on having strong control policies and procedures in place to monitor the employees handling the cash and to safeguard the cash. However, the …

Flat Cargo Berhad (FCB) was one of the Malaysia largest investment holding air freight companies listed in Bursa Malaysia on 15th September 2001. FCB core business is to provide air freight services and aircraft ground handling services within the Asian region. FCB whollyowned subsidiaries included FC Spare Sdn. Bhd., Cargo …

Flat Cargo Berhad (FCB) was one of the largest air freight companies in Malaysia, servicing several government linked companies including Freight Malaysia Berhad, and had Kencana & Associates served as its auditors. In 2006, during a routine financial audit, the auditors identified several suspicious findings that resulted in a delay …

1. A review differs from an audit because a review does not allow the auditor to test or observe internal controls and assess control risk. According to AS 5, effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial statements. As a result, an auditor cannot …

1.The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. Following parties are believed to be the most …

1. Kenny recently joined the public accounting firm of Hamid, Krishnan & Co. as an audit assistant after obtaining an accounting degree. He quickly established a reputation for thoroughness and a steadfast dedication to following prescribed auditing procedures to the letter. On his third audit for the firm, Kenny examined …