Case Study : Please study the details given below and answer the questions given at the end of the case Zwick Electrical “Did the consultants come up with anything?” asked Wilton Zwick. His brother‚ Carlton‚ nodded affirmatively. “There are several possible alternatives. In terms of alliances it looks like they have identified two potential partners. Here‚ take a look for yourself.” Wilton quickly scanned the report’s front page. “Hmm‚ Asea Brown Boveri and Siemens?” Carlton and Wilton Zwick
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Chapter 1: INTRODUCTION TO THE PROJECT 1. Significance of the Study Siemens is a global leader when it comes to engineering sector. It manufactures almost all the heavy electrical devices such as from transformer to miniature circuit breaker. Siemens is well known for its stringent quality norms. It has been successful to differentiate itself from the competitors on grounds of quality. Project aimed at compiling a new quality control procedure manual from the existing manuals such as Site
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ZZZZ Best company is one of the biggest examples of Accounting Frauds. The founder of ZZZZ best was Barry Minkow. He was a very smart young entrepreneur when he started the company. He was involved in credit card forgeries prior to starting his own carpet cleaning business “ZZZZ Best Company”. Minkow began his business with small carpet cleaning jobs and he became a multimillionaire in a very short period of time. Minkow met a person named Tom Padgett at Los Angeles Health club. This was the beginning
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Next audit company which audited Minkow’s company was Ernst and Whinney. From Greenspan confession‚ he already communicate with Ernst and Whinney as predecessor auditor who audited ZZZ Best but this statement was rejected by Ernst and Whinney. Ernst and Whinney signed an enagement letter as a proof that Ernst and Whinney had right to audit ZZZ Best Company Inc. In that contratc‚ ZZZ Best Company Inc.‚ asked four services to Ernst and Whinney that the audit firm intended to provide ZZZ Best‚ that
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1. Ernst & Whinney audit firm suffered tremendously from the backlash of ZZZZ Best’s case. One of the issues stemming from ZZZZ Best’s case is the difference between a review and an audit as evidence by civil suit filed by a California bank against the firm. The bank claimed that its decision to grant ZZZZ Best’s loan was based on the opinion of Ernst & Whinney review of ZZZZ Best’s financial statements period ending July 31‚ 1986. The case was ruled in favor of Ernst & Whinney as the
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objectives that auditors hope to accomplish by: * Confirming a client’s year-end accounts receivable‚ and (Balance related existence) * Performing year-end sales cutoff tests. (transaction-related objective timing) (5 points) 2. 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. * What are the important differences between an audit and a
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CASE 1.10 United States SUrgical Corporation 1980 an ‘1981 ftnicia1 sheets and iicbme statements fOr the j 1 Thas and subsequent quOtatiOnS unless indicated othrwise‚ were taken from Secunties and Exchange AccountiAg and AuthdrzEifocerhe‚# Release No 1O9A‚ August 1986. 122 H SECTION ONE COMPREHENSIVE CASES IIBIT 1 TED STATES :GICAL PORAT1ON’S ‘9—1981 kNCIAL TEMENTS Current Assets: Cash Receivables (net) Inventories: Finished Goods Work in Process Raw Materials Other Current
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In your answer give and support your opinion as to whether or not E&W violated these paragraphs and if you can prove it as a fact. As the successor auditor (an auditor considering accepting an engagement to audit financial statements)‚ Ernst & Whinney was supposed to contact George Greenspan for information on ZZZZ Best prior to accepting them as a client. An auditor should not accept a client without first evaluating any communication from the predecessor auditor (Au 315.03). The predecessor
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pre-audit report and post-year-end earnings press release. Accuracy‚ honesty and integrity are both keys to the success in auditing and following the rules of GAAP are a must for all those involved. Analysis In this case‚ the auditing firm Ernst & Whinney only issued a review report‚ which gives a limited assurance that the financials are accurate. According to CPA James Ulvog‚ (2006)‚ “An audit report provides more assurance to a reader of the financial statements than a review or compilation”(para
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------------------------------------------------- ZZZ Best Company‚ Inc. ------------------------------------------------- Case Study 2 ------------------------------------------------- Due Date: March 30‚2010 ZZZ Best‚ Case 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
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