Re Kingston Cotton Mills Auditors are watchdogs not bloodhound Entitled to trust the officers and employees of the co being audited Entitled to rely on the figures presented to them Have any reason to be suspicious‚ should personally make enquiries or checks APPOINTMENT Approved co and consent to act as auditor S8 appoint approved co auditor applied to Minister to Finance satisfied Minister of good character and competent to perform the duties of auditors i) granted with approval to act or ii)
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Case # 1 Andersen: An Obstruction of Justice? P. C1 DISCUSSION QUESTIONS 1. Look up the term corrupt in the dictionary. What is its definition? Was corrupt appropriately applied to the actions of Arthur Andersen? 2. The issues that overturned the Andersen verdict were based on faulty jury instructions‚ not on whether Andersen was in fact guilty or innocent. Based on the information in this case and other information you know‚ do you believe Andersen violated the law? 3. Do you believe that the
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LESSON 1 INTRODUCTION TO AUDITING 1. WHAT IS AN AUDIT An audit is an independent examination of the financial statements of an entity in order to enable the auditor to express an opinion as to whether it gives a true and fair opinion and if it has been properly prepared in accordance with the applicable reporting framework. 2. Under the Companies Act‚ Cap. 50‚ private limited companies that satisfy the following conditions are not required to have an
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Deloitte Sued for 7B in Mortgage Fraud Case By THE ASSOCIATED PRESS New York Times September 26‚ 2011 MIAMI (AP) — A pair of lawsuits filed Monday claim that Deloitte & Touche LLP‚ one of the nation’s largest accounting firms‚ should pay $7.6 billion in damages for failing through years of audits to detect massive fraud at a now-defunct Florida mortgage company. "They certainly did not do their job‚" said attorney Steven Thomas‚ who represents those suing Deloitte. "This is one of those cases
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fairness . 4. Accountants work in many aspects of business. As public practitioners‚ accountants are auditors and business advisors in a number of areas. They also hold positions as tax advisors. 5. In addition‚ accountants serve in key internal positions in organizations in the public and private sector‚ are internal auditors‚ and work as educators. 6. CAs are national-level watchdog‚ but they
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Nazeeha Badran October 30‚2012 PTL Club clear-The Harbinger of things to come? 1. What similar factors led to the demise of both Laventhol &Horwath‚ and Anderson? Both Laventhol and Horwath‚ and Arthur Anderson accepted clients that were risky just to keep their revenues up. L&H knew there were things wrong with PTL‚ especially since they were doing things that were hidden from the Board‚ like the payroll account book‚ which was secret. The Bakker’s would call the senior L&H
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Financial Scandals and the Role of Private Enforcement: The Parmalat Case Law Working Paper N° 40/2005 May 2005 Guido Ferrarini University of Genoa‚ Centre for Law and Finance and ECGI Paolo Giudici Free University of Bozen and Centre for Law and Finance © Guido Ferrarini and Paolo Giudici 2005. All rights reserved. Short sections of text‚ not to exceed two paragraphs‚ may be quoted without explicit permission provided that full credit‚ including © notice‚ is given to the source. This
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what the firm had admitted. After initial denials‚ Luca Sala‚ Bank of America’s former chief of corporate finances in Italy‚ admits to participating in a kickback scheme. Furious US creditors file a $10bn class action suit against Parmalat’s former auditors and bankers while Parmalat’s administrators under replacement chief executive Enrico Bondi separately sue Bank of America‚ Citigroup‚ Deloitte & Touche and Grant Thornton for $10bn each. The US SEC calls the affair a “brazen corporate financial
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Examining the Failure of Arthur Andersen Hester Rall LDR 531 November‚ 28 2011 Tom Melpolder Examining the Failure of Arthur Andersen Introduction Organizational Behavior (OB) is the study of an organizations individuals‚ groups and structures and its impact on workplace behavior (Yukl‚ 2010). In reviewing the failure of the storied Arthur Andersen (AA) accounting firm we see the influence of individuals’ decisions‚ particularly that of its leaders‚ but also the lack of individual accountability
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1. What is earnings management? The companies use earnings management as a strategy by which they can easily control and manipulate their earnings to reach their pre-determined earning target. 2. Why do companies employ earnings management techniques? Accountants cannot predict every business structure‚ every new and innovative transaction. Therefore‚ they build up principles that allow for flexibility so that they can adapt to changing circumstances. However‚ people make use of that flexibility
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