Essays on Gramling

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 ...

Introduction

The Deepwater Horizon oil spill started in April 2010 in the Gulf of Mexico on the British Petroleum-owned Macondo Prospect. Taking after the blast and sinking of the Deepwater Horizon oil fix, an ocean depths oil gusher streamed for almost 90 days, polluting the sea water with crude oil and killing off most of the plant and animal life in that ecosystem. Current BP authorities wouldn't remark on the record for this story. Be that as it may, individuals acquainted with within BP's emergency control exertion and outside specialists say at an early stage, BP didn't have an advertising ...

The relationship between the sample size for controls testing and each of the following factors:

- The likely effectiveness of a control Controls are categorized differently when it comes to control-testing, but they all operate in a methodical manner that enables the sample size for control testing to take place. They as well enable the auditors to carry out a comparison of the upper deviation rates something that results to the acceptable rates in the sampling size for control testing. As a result, they might be termed as advisory tools that might be valuable and expedient for the management personnel. - The acceptable rate of deviation Rate of deviation denotes the miscalculations and inaccuracies that ...

Introduction.

External auditing involves a close examination of a company’s financial and operational records in confirmation of accuracy of statements. External auditors establish company’s credibility, and ensure tax laws compliance. They assist in double-checking of internal audits carried out in a company, train accounting principles to internal auditors, and explain any difference that may occur between internal audit and their audit (PORTER, HATHERLY and SIMON, 2008). The limitation of depending with internal audits is that they cannot effectively critique the internal processes of a company since they are part of it. External auditors, therefore, provide independent results since they are acquired ...

Introduction

Research into the human error factor at Macondo Oil well disaster can be reviewed from different aspects. Textual analysis will review existing records and test results at the company, that is, BP and Transocean, the owner of the Deepwater Horizon Drilling Rig. The research will further examine reports of commissions that were formed to look into the Gulf disaster. Several commissions and organizations took the effort to review the different causes of the disasters. In particular, the National Commission on the BP Deepwater Horizon oil disaster, commissioned by President Obama, produced a Chief Counsel’s report which was the basis ...

Effects of the Sarbanes Oxley Act

The Sarbanes Oxley (SOX) Act of 2002 contains additional regulations and oversight for corporations, auditors, and the accounting profession. The SOX Act attempts to decrease fraudulent financial reporting by increasing accountability and by the implementation of severe civil and criminal penalties (Clark, 2012). The increased oversight and regulatory procedures affects regulators, taxpayers, and organizations in terms of time and compliance costs (Clark, 2012). The SOX Act consists of 11 titles that address various issues on financial reporting (SOX, 2002).The 11 titles contain 66 sections in total that address various sections in the financial reporting cycle (Schaeffer, 2006). ...