understanding made by management. In the case of ZZZZ Best‚ Minkow retained Ernst & Whinney to perform the following year’s audit. However‚ instead of performing an Audit‚ they decided to provide a review of the company’s financial statements for the three-month period ending July 31‚ 1986. They chose not to perform an audit because they did not want to provide an opinion regarding the financial statements as a whole. 2. In order for Minkow to convince Ernest & Whinney that his insurance restoration
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1. There are numerous differences between performing a review and actual audit on the financial statements‚ but the major one is that the review does not contemplate obtaining an understanding of internal control structure. Also‚ a review does not assess control risk‚ tests of accounting records and responses to inquiries by obtaining corroborating evidence through inspection‚ observation or any other audit procedure. It can point out significant matters of the financial statements but does not provide
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Can corporate fraud ever be eliminated from the workplace? Abstract Corporate fraud has been a growing issue since Enron bankruptcy. The factors that contribute to the occurrence of corporate fraud are hard to control and methods used to prevent and detect fraud both by internal control and outside auditing have unavoidable weaknesses. Despite all the effort being made‚ it is highly unlikely that corporate fraud can be eliminated from the workplace. Introduction After Enron scandal got
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Report on Financial Statement Fraud Scheme Name ACC 556 Date Instructor NameReport on Financial Statement Fraud Scheme TO: Organization’s Management FROM: Learning Team DATE: SUBJECT: Fraud Examination Findings A Summary of the Matter under Investigation Crazy Eddie Electronics Stores a chattered company‚ traded under the symbol CRXY on the New York Stock Exchange. The company was under management of Eddie Antar family from 1971 until 1987 when Oppenheimer-Palmieri Fund (OPF) took
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Case 1.9 Zzzz Best Company Case 1.9 ZZZZ Best Company‚ Inc. 1. A review is similar to an audit but is less in scope and only provides limited assurance in regards to the presentation of the financial statement. This differs with an audit that gives reasonable assurance that no material errors or illegal acts are detected. The objective of an audit is to provide a reasonable basis for expressing an opinion regarding the financial statements taken as a whole. A review does not provide a basis
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decide if it has the capability to serve the client‚ and also find out about any prior issues that may have occurred during previous audits such as fraud or disagreements between management and the other auditor. 5. The confidentiality agreement that Minkow required Ernst & Whinney to sign
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Case Study: ZZZZ Best Company‚ Inc. 1. Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for three months ended July 31‚ 1986. How does a review differ from an audit particularly in terms of the level of assurance implied by auditor’s report? Although a review is similar to an audit‚ it differs from an audit in its limited scope and assurances. The objective of an audit is to provide a reasonable
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Case 1.9 Question 1: Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for the three months ended July 31‚ 1986. How does a review differ from an audit‚ particularly in terms of the level of assurance implied by the auditor’s report? Answer: A review report does not assess the control risk of a company‚ which means Ernst & Whinney could have not gotten the proper risk that a material misstatement
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Case Study – ZZZ Best‚ Inc. 1. Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for three months ended July 31‚ 1986. How does a review differ from an audit particularly in terms of the level of assurance implied by auditor’s report? A quarterly review report is issued by a CPA and reviewed by an auditor to provide assurance that the financial statements are fair and follow the GAAP standards. Quarterly
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ZZZZ Best Case Assignment #2 Question 1: 15 points AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315‚ explain the following: A. As the successor auditor‚ what was E&W supposed to do before they accepted ZZZZ Best as an audit client in regards to Greenspan? Summarize in enough detail AU 315.03-.06. In your answer give and support your opinion as to whether or not E&W violated
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