Audit Case Studies Samples For Students

In the contemporary business environment, the management of information and data forms a critical component of the business entity. One major role played by the management systems is the ability to provide information that can be used to develop trends. Upon these trends lie the capability of the business entity to come up or predict the market abilities and the opportunities. At a time when competition is at peak high in the market and the market share is under threat of diminishing every day, there is a need for the business entity to have a clue as to what expectation the market holds ...

Recommendations

Actively engaging in and even being an accessory of an auditing process that involves falsification or voluntary omission of required elements to be audited is not only unethical but also illegal. Most companies falsify their auditing reports so that they can pay smaller amounts in taxes and other expenses.
In Sue’s case, she is well aware that what her company is doing with its auditing reports is illegal because it is practically waiving the employee taxes that it should pay to the government by means of voluntary non-declaration or misclassification of assets and resources. Both the senior ...

Regi’s Stock Sale Dilemma

Regi Philman is in a dilemma whether he should use the specific identification method or the FIFO method (first in first out) to calculate his tax returns. On the audit of Regi’s 2010 return, the IRS has taken the conclusion under Reg. Section 1.1012-1(c) (3) that he should report the sale using FIFO method of his stake in Rippa shares, resulting in a gain of $140,000. Research
Section 1.1012-1(c)(3)(II)(b) of the IRS regulations states: “ Where part of the stock represented by a one certificate is sold directly by the taxpayer to the purchaser, an adequate ...

- I disagree with the conclusion. If the lawyer is silent on certain matters of audit conclusion, the auditor should not assume the matter as complete. Instead the auditor should conduct an inquiry and get more details regarding the matter. Maintaining silence on an issue does not mean that the response is complete.
- In the given case, the conclusion is correct. If the lawyer does not provide the probable outcome of the given case, the auditor can specify it in the notes to financial statements and assume that the scope is restricted. Even after the request of ...

INTERNATIONAL STANDARDS OF AUDITING

Introduction
An Audit report is a formal disclaimer or opinion given by either an internal auditor or an outside auditor (Collings, 2011). The audit report, after completion, is handed over to the consumer, the company or organization in which the evaluation was done, so as to show assurance of service. The report can then be applied in decision making by the user or can be put to other uses. The audit report is a very paramount instrument when it comes to reporting financial information to businesses or organizations. The International Standards of Auditing (ISA) are the professional standards and guidelines ...

Differences

Similarities
- Both companies failed because of poor internal management controls.
- Both companies had poured governance structure that oversaw the operations of the firm. The chairmen who controlled the management of the two companies were in people with high reputation2.

PFG

- Peregrine Financial Group offered an online trading platform that is fully staffed throughout the day and night.
- Increased customer base and customer assets gave it a good public image
- It had a large number of operating and independent brokers throughout the United States.
- The chairman was given good reputation in the ...

Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike.
An effective ethics program helps an organization establish a culture that has concern for their employees well being (Mullan 2010). The organization will consider employees as an important part of their business and strive to ensure that they are working in safe conditions. In the case of Nike a more effective ethics program would have ensured that they do not hire children to work for them in their factories. It is not ethical to hire children, Nike would have ...

Grave industry is a corporation that was founded in the year 1920s to participate in the manufacturing of hardware and tooling. The corporation converted to a public company in 1926 and listed its stake in the New York stock Exchange. The company grew with its revenue rising to $41.5 million by the year 1945. By 1981, the company had expanded to the extent of separating its structure into producing and selling tools and hardware to hardware distribution chain. By 1963, the management had resolved to expand its activities into marine hardware production through acquisition of Lohnes Marine Hardware company. Under the ...

One of the major mergers was between Daimler-Benz, a German company and a US producer of cars, Chrysler. Daimler needed to enter new markets and develop new products; Chrysler felt need for a partner to cater the over-capacity of the industry. This merger involved various socio-cultural issues: first of all, to reflect the German strength, the name chosen was DaimlerChrysler; American executives got better rewards as compared to German counterparts; differences in dress codes, travel policies, working patterns and even the behavior in business meetings was completely different for the two companies. There were cultural differences too; whole environment and the core ...

Tim Horton’s internal audit plan is conducted by the accounting staff to provide specific guidelines to be used by the management review team and private certified public accounts to carry out accounting processes. The audit plan consists of several phases and these include planning, fieldwork, a take notes meeting and a counteractive audit. Planning processes are the most important step in ensuring a successful internal audit. Tim Horton Inc. operations include the development and franchising of quick service restaurants principally in the United States and Canada serving premium coffee, fruit smoothies, soups and other food products. As a franchisor, royalty revenue is ...

Mission statement

The mission of the company is to perfect the personal leisure experience
The main purpose of the or business of the company is provision of leisure and airline services to its customers.
The business consists of hotels and apartments which are meant to provide leisure to the customers
The company is also engaged in wedding preparations
SWOT ANALYSIS
The main strengths of the company is the provision of leisure of activities in the tourism sector
The weaknesses of the company rest on the debts of the company because the company is experiencing a lot ...

Introduction

R. Allen Stanford, through the Stanford Financial Group, was involved in a financial scam in which investors lost an estimated $ 7.2 billion. This was through a massive ponzi scheme in which the Stanford financial Group offered investors a return on their investments which was higher than market rates. The investors were misled into believing that their investments were made conservatively.
Fraud was committed through the issue of certificates of deposit to investors through the Antiguan bank which was a subsidiary of the Stanford Financial Group. These certificates of deposit sold to investors were later discovered to be bogus.

Claims against Stanford’s auditors

Stanford’s auditors, BDO ...

Abstract

The question on the moral issues surrounding companies and their decision makers has been there for a long time. This has become even more critical given companies’ ever-increasing urge to outdo their competitors. It has consequently, led to the development of decision-making models that incorporate ethical values to describe processes that decision makers should follow when dealing with issues containing ethical dimensions. That, therefore, creates and maintains a corporate culture that is ethics-oriented. Many problems and solutions have been attributed to the corporate practices that constitute an organization’s culture. That definitely makes it an important determinant of the ...

The Audit Enhancement Bill 2012 aimed at improving the transparency and quality of the auditing process to align Australia’s auditing framework with internal standards (Australian Government, 2012). According to Australian Institute of Chartered Accounts (AICA), the Audit Enhancement Bill 2012 brings more evolutionary changes than revolution changes. The AICA believes that these evolutionary changes will help in fine tuning the quality of the auditing process in Australia. The Audit Enhancement Bill 2012 are several measures affecting the regulatory framework in Australia. These measures recommended in the Bill include the extension of the frequency of rotating auditors by two ...

Attribute Standard 1312 issued by the IIA indicates that Internal Audit Departments purporting to follow IIA Standards must have an external assessment “conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. Two such organizations include World Com and Fannie Mae. The two organizations were in the news owing to various reporting and internal audit practices that may have resulted in their collapse, as is the case of World Com or hefty financial losses for their shareholders and other stakeholders. Consequent to such observations, the objective of this paper is ...

The professional standards i.e. International Ethics Standard Board for Accounting (IESBA) enables a company’s auditors to provide tax services and retain their independence. The standards give permission to audit firms to provide non-audit services if the provision of services does not conflict with the independence needs of auditors. The non-audit services are known as permissible non-audit services ranging from professional advice related to transactions, tax services, and advisory services regarding business activities. The tax services include assistance related to tax return preparation, tax calculations to prepare transactions, and planning and resolution of tax disputes. Absence of conflict enables ...

Introduction

The main issues with Parmalat include the ineffective audit planning process and risk management. The company was involved in the fraud and misrepresentation of the financial statements. In addition, due to ineffective audits the company had to face severe consequences at the end. There is a need to implement effective audit strategies and risk management process.

It is important for the auditors to confirm cash balances with the financial institutions that are used in the cash reconciliation of the company like Parmalat. By using standard from confirmation, the auditor requests financial institutions to confirm by examining their records about ...

Audit and Internal Control

Question 1 - Relationship between the Concepts of ‘Business Risk’ and ‘Financial Statement Risk’
The business risk and financial statement risk tend to have a direct relationship with one another because occurrence of business risks, if not addressed by the internal management of ABCDE Company in a timely and wise manner, will potentially result in material misstatements of the figures in financial statements of ABCDE Company. For instance, due to increase in competition, the demand for cleaning equipment sold by ABCDE Company to commercial cleaning contractors decreases which itself is identified as a business risk for ABCDE Company. Due ...

Powers Report: The Enron scandal

The Enron scandal that occurred in 2001 has been cited as the biggest audit failure. The scandal would later lead to the bankruptcy and collapse of Enron Corporation. Enron was an American energy company that was based in Houston. It was the largest energy company in the United States. The scandal also led to the dissolution of Arthur Andersen, an accounting firm that was one among the largest five accounting firms in the world. The investigation began when the share price of the company declined sharply from $ 90.75 in the mid of 2000 to less than $1 in 2001 ( ...

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Research Findings. The phenomenal rise and downfall of WorldCom will go down in history as one of the most turbulent times witnessed in corporate America. The issues related to WorldCom, brought to light many ethical dilemmas, which professionals in the Accounting and Internal Audit functions face, in their working life. The internal auditing function is an activity which helps an organization, by improving its operations and achieves that by implementing systematic processes and a disciplined approach to risk management, control and governance. ...

1. With a 22.7% gross profit ratio, and a 5% return on assets, there is a huge red flag raised. It makes no sense when looking at Crazy Eddie’s figures as to why the profit ratio should be so low. With a profit margin of just 3% over a three-year period, a red flag is raised. This is because with so many millions of dollars in sales, one would expect the gross profit ratio and return on assets to be higher, especially since the chain was expanding during this time period. Because of this, an audit was necessary in order to determine where the ...

Institiution

According to the Wharton research, when an executive is overconfident and thinks that his organization is just facing the bad luck otherwise it is in best concern of all stakeholders. These stakeholders include customers, shareholders, management, creditors, and employees. The executive to cover up the problem takes short routes that do not allow the executive to understand the poor performance of the organization as a future threat. An overconfident manager does not consider the flaws and search for gray areas to manage earnings that led them to fraudulent behavior (Wharton, 2008).
If the case of Satyam is considered, then ...

Enron

Executive Summary
Introduction
Accounting and Finance are two important things from the standpoint of an organization and both of these concepts found exceptionally wonderful as far as operating an organization is concerned (Warren, p.119). Organizations usually have number of departments under one roof and every department is held responsible to play its part for the economic prosperity of the company. Accounting is the name of recording and interpreting the day to day transaction of an organization, while finance is the name of utilizing the funds of a company at an appropriate place from where the likelihood of earning ...

Management Audit: Wal-Mart Stores, Inc.

[Institution Title]

Introduction

Management audit is conducted to monitor and keep track of the management through a systematic, comprehensive and extensive evaluation of an organization . The goal of a management audit is to identify the weakness and potential challenges that confronts the organization . This is in pursuit of trying to address and resolve whatever problem is identified in the management as part of the risk management program that organizations typically employ. However, management audit is specifically targeted on a particular managerial aspect. Among the areas of concern that management audit are directed on involve the organization’s policies, procedures, programs and performance . A ...

The case study of Brent Dorsey

The options available to Brent do not seem easy at all. The option given by Megan is that Brent and Scott take just a little fewer invoices and other source documents as they did the past year. This option is based on the presumption that, since the company has always been right in the preparation of the payable accounts then they would still be right this time. This option has various weaknesses, key among them, and the fact that it relies upon assumptions. It is grossly wrong to assume that any company will prepare its accounts the same way it ...

There were several main red flags that were ignored or handled leniently by E&Y auditors in the audit of Health South. The most important were materiality in ledgers of fixed assets that were adjusted by including false entries and fictitious assets that did not appear in real. Another red flag related to the reality was noticed and ignored by the auditors that company’s officials were interested in increasing the share price of HealthSouth in the stock market anyhow. There should have been awareness of the fact that was avoided by auditors was an unusual increase in the net ...

Internal Audit Case Study

The analytical procedures are important tools for conducting an audit. The procedures can assist the auditors in understanding the business of the clients. Therefore, they are useful because they identify the potential risks and problematic areas that need greater and substantive attention of the auditors (Beasley, Buckless, Glover & Prawitt, 2012). If the analytical procedures are properly formulated, the auditor will be allowed to arrive at a precise expectation of the balance as per the books of the customers.
The purpose of the analytical procedures is for the ascertainment of the irregular transactions and events, financial ratios, figures, and the ...

If Lee had not been seen taking employees out in a limousine, how else could she have been caught?

If Lee had not been seen taking employees out in a limousine, she would have been caught by the audit of balances. Verification of claims through external sources could easily lead to the detection of fraud in this case. Furthermore, mailing addresses of three doctors were same which could have created the suspicion for the auditor. The investigation of these mailing addresses would lead to Martha’s husband's address from where she could have easily be caught after further investigations.
The auditor should investigate the details of doctors to whom the claims were paid by the company. It could ...

What where the Arthur Anderson employees and managers supposed to do and what did they do instead?

Arthur and Anderson employees and managers being stakeholders of the AA auditing company were supposed to exercise professionalism by practicing independence as required by the accounting profession. In addition, they were supposed to be independent from Enron Company to which was their client as international standard on auditing and internal. For example they were not supposed to be part of Enron’s employees and should not have taken part in the internal audit of the company. Besides they were supposed to give a true view of Enron’s financial statements as per there knowledge and skills in accounting and auditing.
...

Topic: Business Law

1. Explain how this scenario relates to an area of law taught in Introduction to Business Law. (2 marks)
Introduction to business law is a phenomenon that aids business mangers and everyone within the business environment to be aware of the legal environment that the business operates in. C & A engages an internal auditor to carry out auditing of their financial books of accounts and through intimidation, Julia who has been engaged as the internal auditor caries out the task negligently and later an external auditor is engaged to check on the correctness of the financial books. Fortunately or ...

1. Introduction
The Enron collapse, occurred in October 2001, consequently caused the bankruptcy of the whole Enron Corporation, the world’s leading energy, commodities and services company, as well as the dissolution of Arthur Andersen, which was one of the top five largest audit and accountancy firms in the world. Noteworthy it was not only the largest bankruptcy proceeding in American history at that time, but also the most serious audit failure, so that one says, “Enron is fraud and fraud is Enron”. The rise of Enron was almost as fast as its failure. Actually, it was an ...

How this scenario relates to an area of law taught in Introduction to Business Law

The tort of negligence is the area of law which this scenario relates to. LMS has threatened to seek legal action against Chuan & Associates to recover damages for the harm suffered because of the approval of financial statements which had material misstatements by the audit firm. Everything 4 Less Limited (E4L) acquisition was a decision based on the information contained in those financial statements and LMS suffered financial loss by relying on them. The statements had overstated the value of the company’s inventories, and this had increased the value of the company during the bid and subsequent acquisition.

The legally important facts in the scenario

...

Executive Summary

One Tel Communications was the fourth largest telecommunications company in Australia. It touches on matters regarding poor management, fraudulent misstatements, the use of remuneration packages for self-interest and lack of regard of accounting policies and legal regulations. These, together with other factors, have led the company to liquidation in 2001.
This report summarizes the key facts from the start of the company business, its capital structure, the people involved in the accounting scandal, the auditing scenario, factors that contributed to the business failure, the audit risks existing at that time, to the conclusion and possible audit procedures that ...

Dalton, Walton, & Carlton, Inc., a vibrant architecture firm, currently faces some challenges in terms of securing its It infrastructure and making it more effective. This paper presents the first steps in auditing the company’s virtualized environment and also its cloud computing and outsourced operations.

Auditing Virtualized Environments

When auditing virtualized environment for Dalton, Walton, & Carlton, Inc., I would start by documenting the overall virtualization management architecture including hardware and supporting network infrastructure (Davis, Schiller & Wheeler, 2011). To achieve this, I would review and discuss with the company’s systems administrator to ascertain that the management and document structures are in accordance with ...

GAS 14 requires a firm to translate all transactions involving foreign currency into the its functional currency. The standard provides that the functional currency should be identified considering the general economic condition (Drsc.de). Transactions are initially recorded at the spot exchange rate on the date of the transaction. After which, monetary items are translated using the exchange rate on the date of preparing the statements (closing rate). Non-monetary items are translated using the rates used on acquisition. Any losses or gains on translation are recognised in the income statement as profit or loss (Drsc.de). The financial statements of subsidiaries ...

Section 1

HIPAA Privacy Rule and Security Rule
The Privacy Rule applies to protected health information (PHI) or health information that can help identify an individual, created or received by covered entities (CE), which include health plans, clearinghouses, Medicare prescription drug sponsors, and health care providers who electronically transmit information. However, the employees of these covered entities are excluded from this while the business associates of these covered entities are subject to some provisions of the rule. The use and disclosure of PHI by the covered entities requires written authorization by the individual as it is governed by the Privacy Rule ...

Risks and Vulnerabilities Associated with Public Clouds, Private Clouds, and Hybrid

Public clouds, private clouds, and hybrid clouds are different in several ways. The use of cloud computing poses various risks to the users of cloud computing. The following are some of the risks that are involved in the use of clouds.

Environmental security

The approach used in cloud computing is that many of the computing resources are located in a common cloud computing area (Romes, 2013). This concentration of resources and uses elevates the cloud computing environment which results in an increase in the number of threats. Cloud computing environments have an allure to attackers due to their significance to the ...

PART A

Question 1
When determining whether an account ought to be considered significant, the auditor should consider planning materiality threshold. An account whose financial statement surpasses the planning materiality ought to be considered significant for both the financial statement audit, as well as, internal control over the financial reporting audit. In essence, the accounts that exceed the planning materiality more should be greatly considered significant.
The qualitative factors that can cause an account, which is otherwise quite small quantitatively to be considered significant according to AS5 include:

Susceptibility to misstatement as a result of fraud or errors;

The composition and size of the account;
Nature of the ...

Accounting

Revenue recognition:
The recognition of revenue is an important aspect because they dictate the financial position of a company. Under this principle, the revenues are recognised in the period whether or not they are paid up in the same time. The transaction that raises the revenue is recognised as the driver of the revenue. In that case, once the transaction occurs, the revenue is recognised. This means that the transaction for delivery of services or goods leads to the revenue falling due immediately. The revenue is recognised once the product is delivered. The arrival of the revenue is assumed ...

Re:

Introduction

In 2000, the Chief Executive Officer (CEO) of Qwest, Joseph Nacchio, was charged civil and criminal liabilities after it has been found that he violated the provisions of GAAP against fraud and insider trading. He was sentenced to six years in prison in 2007 and was slapped with a $19 Million fine and a forfeiture order for proven illegal stock sales transactions worth $52 Million. In this memo, the author discusses the different aspects of Qwest’s case, emphasizing the role of GAAP and the PCAOB.

The Generally Accepted Accounting Principles (GAAP) refers to a standard framework of ...

Question 1

In carrying out an audit, there are several requirements related to developing an expectation and conducting analytical procedures when the procedures are intended to provide substantive evidence. The first requirement is determining the suitability of the procedure. In determining the suitability, the auditor should consider the risk of material misstatement. The auditor should use procedures that help to identify material misstatements.
The second requirement is an evaluation of the information and data that auditor uses to develop his expectations, trends and ratios. The reliability of the information and data depends on the strength of internal controls, the source of ...

In the case, Robert Lee, the partner-in charge of the engagement, made a decision to purchase the outstanding stock of Stewart International basing his decision on unaudited accounting records. Joseph Chang is in a dilemma whether to submit the audited accounting records which apparently does not reflect the 25% increase in earnings that has been reflected by the unaudited accounts which will make Robert and Charles stop reclaiming the company’s stock from members of the public or to go without reporting the audited accounts and leave Robert and Charles continue to repossess the outstanding stock.
Joseph Chang’s decision ...

- Look through a selection of corporate social responsibility/sustainability reports from Egyptian Listed Companies. What reasons do the companies give for producing the report? Do their reasons coincide with a business case or a pure ethics motive for corporate social responsibility?
There are two kinds of business or corporation. The first type goes after profits and the second one does not, hence the names for-profit and not-for-profit organizations. The former exists to make profits and it can be asserted that the main priority of such organizations is to generate profits above anything else. On the other hand, the latter exists not ...

iTech has implemented a quality management system meeting the requirements of ISO 9001:2008. The purpose is to define the standard operating procedures (SOP) for the requirements of the iTech quality management system.

Scope

This document determines about the standard operating procedures for all the processes of iTech’s quality management systems that are inclusive of production and non-production processes. The document presents and determines the interaction and sequences of these processes. It describes the purpose and activity of each process and the corresponding input and output conditions. All the applicable sections of ISO 9001:2008 are identified per each of the ...

Business

VENTURA COUNTY TRANSPORTATION COMMISSION (VCTC) FISCAL YEAR 2015/2016
VENTURA COUNTY TRANSPORTATION COMMISSION (VCTC) FISCAL YEAR 2015/2016

The Ventura County Transportation Commission (VCTC) or generally the commission was developed by the Senate Bill in 1880 under Chapter 1136 of the well known Public Utilities Code. It was developed in order to counter the defects of the previous body and for this case was identified as the major successor agency to the previous that existed Ventura County Association of Governments (VCAG). The body was succeeded under the conditions of assuming all the overlying assets and liabilities that were overlying. The ...

Auditing Windows operating systems

Dalton, Walton, & Carlton, Inc. have a complex IT infrastructure that requires auditing to increase its security and efficiency. The first step I would take when auditing the company’s Windows Operating System is to obtain the system information and the service pack version and compare that information with the policy requirements. Policies are established to make the working environment more secure, manageable and auditable (Davis, Schiller & Wheeler, 2011). In case the Windows Operating System is not genuine I would install a genuine and validated version Windows Operating System version in order to increase security. This is because the company’ ...

Media is regularly publishing reports that suggest about the spread of malicious software across various networks and talk about the external threats that may cause irreversible harm to the network resources. Although, external threats are really troublesome and may cause a lot of negative business impact, the internal threats are far more powerful and may result in a much higher loss as compared to that of the external attacks. This business risk has led to the companies to create investigation systems in order to monitor the networks is that there can be a proactive analysis of the activities and detection of attacks.
...

Company and Situation

In the period following the late 1990s, Thomas (2002) mentions that Enron Company was regarded as one of the outstanding, as well as, most innovative companies in the American state. The entity continued with its bid of building new power plants and operating other gas lines. It was also well-known for its unique methods of trading. However, all these prospects came tumbling down when it admitted to having misrepresented its incomes and that the company’s value of equity was less than the one stated in the balance sheet. In this light, the following paper will conduct research regarding ...

CONTENTS
I. Introduction 3
II. The Real Reasons of GSK Corruption Controversy 5
(a) Corruption is intrinsic to the elite Chinese business circles 5
(b) The mechanisms of Internal Audit were Not Adequate 7
III. The Response of GSK to the Allegations of Corruption 8
IV. The Nature of GSK Alleged Guilt 8
V. Avoiding the Mistakes of GSK China 9
VI. Lessons Learned 10

References 12

Introduction
Doing business in China has never been an easy task. The country has extremely entangled legal framework, intense competition between the domestic and international goods producers, not to mention that this communist country ...

1. The name of the organisation, the industry it operates in and the issue relevant to ethics and corporate governance with which it was connected.
a. What were the conditions at the organisation that led to this example of poor corporate governance? (5 marks)
b. What were the outcomes for the board of directors, the shareholders, the staff of the organisation, its customers and the general public? (5 marks)
The processes and structures for control and direction of firms is corporate governance. It is concerned with the associations between board of directors, management, control of major ...

Before the success of the book three cups of tea the company put in place many measures that will ensure that the organization fund are not misused in any way. Some of these measures are;
- The organization employed a competent chief financial officer who did her work with a lot of competence and integrity that it deserve, we are told in the case that the chief financial officer resigned her job after been frustrated by the management laxity to implement measures that will ensure stringent financial control, this demonstrate the competence and integrity of the financial officer.
- ...

Auditing their web server will involve the complete audit of their platform, server, and applications. Since their servers are windows based, I will first find out the system information, comparing with policy requirements. Then I would determine whether their servers are running the company’s firewall. I would also check if they are running the company firewall, then ensure that all patches have been installed. After that, I would check to see whether the patches that are installed are approved by company provisioned patch management solution. I will also validate the services running on the server; I will also ...

The fall of Enron

What went wrong and why?
Answer. The wrong done in the case of Enron and the reason for the wrong can be described on the basis of the following aspects of their business:
Enron’s core business was initially focused on natural gas pipeline and they made exceptional growth in the business. By the end of the 1990s they decided to diversify their business to the newly emerging business of asset management, construction, and Internet operations.
Enron entered into foreign markets of Latin America, Asia, and UK with fresh subsidiaries focusing on development of asset management, construction, and internet ...

Arthur Andersen founded Arthur Andersen LLP (AA) in 1913. AA was built upon legendary integrity. On one occasion, Arthur refused to approve a transaction that could have inflated the earnings of a local railroad company. In 1954, AA started offering consultancy services that soon overtook audit services as the main revenue source. The culture of AA started changing from one where integrity and reputation came first, and instead AA focused on an aggressive pursuit of revenues. As the pressure for profits mounted, AA adopted more rationalized Audit approaches that required more analysis and less time input.
AA started having ...

Masri Toy Company Case Analysis

Introduction
Masri Toy Company is a family business registered in 1983 to create, design and distribute children toys and books to other retail firms spread out over several regions around the country. The business since it was established had been under the management of Samir’s father until 2008 when he died. One of the sons (Samir Masri) took over the management and leadership of the business from that point forward. Prior to the father’s death, the business performance had taken a declining trend a fact that even the father kept worried, however for the year 2009 to 2010, the ...

Executive Summary

This case study focuses on identifying fraudulent issues taking place in the given four situation of Forensic Accounting. It identifies the issue on hand for every situation and goes further to discuss the in details the presence of elements such as coercion, collusion, and concealment. Nevertheless, the paper utilizes the fraud triangle to explain how the fraudulent acts are committed. The conclusion for each situation discusses the possible ways of addressing the issues being identified.

Introduction

Fraud have been on rise in forensic Accounting creating path for more investigations in order to identify ways in which these frauds arise and ...

Introduction

The growth and demise of the Enron Corporation has received critical responses from across the globe. A company that claimed revenues of approximately $101 billion in 2000 had fallen from its grace a year later in 2001, when it declared bankruptcy. The rise and fall of the Enron Corporation came as shock to a lot of small and large investors. After scrutinizing the financial statements investigators found that the figures in the financial statements were artificially inflated in a systematic manner, which is now better known as the “Enron Scandal”. This scandal is believed to be the biggest Accounting scandal of all ...

Issues in Business: Case Analysis – Risk Analysis

Issues in Business: Case Analysis – Risk Analysis

Introduction

The case study under analysis herein, assumes a larger business venture of an online streaming video service Netflix. The company, as any other commercial enterprise, needs to secure its online proprietary data, as well as protect its software learning environment from unpaid subscribers, or unauthorized hackers. Historically, the company just started one year ago, in the context of the case study. The perspective of this written report is from a consultant. According to Gill (2012) IT risk lays at the heart of business, although many treat this aspect “as an afterthought,” and ...

Facts

This case presents a compelling argument about the importance of maintaining good corporate practices in the business sector. Computer Associates is facing a difficult economic situation due to the flaws in the management. High profile executives like Stephen Richards utilize foul accounting practices to augment the company’s sales values and to improve its performance in the public traded stocks. For instance, the company employees manipulate the sales dates by calculating returns from different fiscal quarters. Additionally, the internal audit committee fails to reveal the nature of their financial inadequacies upon the first audit. By violating the Generally Accepted ...

Introduction

In his case, Ferrell (2012) discusses Enron Corporation from when it was formed, when it collapsed and all that followed after its collapse. Enron Corporation is an American company headquartered in Houston, Texas. This company was formed in the year 1985 through the merging of two gas pipeline companies. Enron Corporation deals in products and services such as natural gas, and also electric power generation and distribution. However, in the year 2001 when Ken Lay was the Chief executive officer and at his time of his stepping down, Enron was faced with financial problems which eventually led to its ...