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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Topic: ZZZZ Best Company One of the most elaborate and frauds in the United States corporate history was done by a man named Barry Minkow during the 1980s. At the age of 12 Barry got involved with the carpet cleaning business through his mother. One of the good things for a young person of Barry’s age is that this industry is fairly simple to get into. Therefore it required no prerequisite abilities or permits. However what Barry Minkow did not expect was the high tolerance required in order to
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The claim that Larry Gray lacked sufficient knowledge of the client’s business or industry is evident in several scenarios. First‚ Gray did not perform an analysis of the industry. Paragraph five of AS No.9 states that “planning the audit includes establishing the overall audit strategy for the engagement and developing an audit plan‚ which includes‚ in particular‚ planned risk assessment procedures and planned responses to the risks of material misstatement.” Planned risk assessment procedures
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ZZZZ Best case case1.9 Q1 There are three different levels of services you could obtain from a certified public accountant. These are referred to as compilation‚ review‚ and audit. There are significant differences between the objectives of an audit of financial statements in accordance with generally accepted auditing standards and the objectives of a review in accordance with statements on standards for accounting and review services. The objective of an audit is to provide a reasonable basis
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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 1.9: ZZZZ Best Company‚ Inc. 1. A review differs from an audit because a review does not allow the auditor to test or observe internal controls and assess control risk. According to AS 5‚ effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial statements. As a result‚ an auditor cannot provide reasonable assurance regarding the reliability of the financial statements by just completing a review; they must complete a full audit
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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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same name. Dear John showcased many aspects of communications in its most simple forms. Including the ten stages of the Knapp Stage Model‚ which could actually be witnessed throughout the Dear John the movie and the book‚ as the two main characters‚ John and Savannah‚ developed their relationship and as they tried to maintain their relationship. In the Knapp’s Stage Model‚ Mark Knapp describes the progression and development of relationships as a series of ten stages in two phases: the ‘coming together’
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ZZZZ Best Company Case Ernst and Whitney 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? While both a review and an audit are attestation services provided by CPAs. A review and an audit differ in that a review does not offer the level of assurance
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visited selected restoration sites are more reliable than management assertion of occurrence. Management assertions can be purposely misleading and the individuals might go to a great length to defraud the auditors and the public. In the ZZZZ Best Companies case‚ Barry Mirkov asserts that all financial statements are properly presented and when the auditors decide to take further auditing procedures‚ Barry Mirkov creates fraudulent contracts‚ rents real estate spaces for a few hours and hires a few
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