significant related party transactions is due to increase risk of fraud in the firm. According to ISA 550‚ the auditor should obtain sufficient evidence regarding the disclosure by management of related parties that engage with the client and the effect of the transaction that they made which are materials to financial statement. It mean as an auditor‚ they have to be more aware about the related party when go through the auditing procedure even if the auditor has no reason to suspect that related party
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| | |Ann Inc.: Audit Risk Analysis | | | |
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Sales at Miniscribe Corp. grew from just over $5 million in 1982 to approximately $114 million in its fiscal year ended in 1985. The 1986 and 1987 annual reports talked enthusiastically about new manufacturing initiatives. MiniScribe’s success continued well into the first half of 1988‚ when the company seemed to be the only disk drive manufacturer in the industry to buck another slump. The improved financial results of the company were mostly fabricated‚ including fictitious shipments to boost
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Sunbeam’s shareholders felt deceived and filed lawsuits. Sunbeam’s accounting firm‚ Arthur Andersen (later ruined by its involvement with Enron)‚ performed an audit and reported that Sunbeam’s books were accurate and in accordance with federal guidelines. However‚ the board was unsatisfied and hired Deloitte & Touche to review Arthur Andersen’s audit. This follow-up uncovered proof that the numbers had
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Crooked CEO gets 50 years jail In 2013‚ the founder of Peregrine Financial Group Inc. sentenced 50 years jail for stealing $250 million from investors and hiding his theft around 20 years. The U.S. Attorney Sean R. Berry of the Northern District of Iowa states that‚ for years seemed Russell Wasendorf‚ Sr. was a successful CEO of his own brokerage and respected member of his company‚ supporting local charity‚ and creating jobs. But in reality‚ “he was a con man who built a building on smoke and mirrors”
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Strategic Audit of The Gap‚ Inc. Submitted by: Chris Bess‚ Teddy Ormsbee‚ Tiffany Sayers‚ and Jeremey Williams Submitted to: Professor Ditmore 13 April 2010 Table of Contents I. Current Situation: The Gap in 2002 3 A. Past Corporate Performance 3 B. Strategic Posture 4 II. Corporate Governance 5 A. Board of Directors 6 B. Top Management 7 III. External Environment: Opportunities and Threats 8 A.) Societal Environment 8 B.) Task Environment 10 IV. Internal
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Audit Case- Tommy O’Connell The audit case I chose was case #1‚ Tommy O’Connell- Audit Senior. O’Connell is a newly appointed senior auditor for a big 5 firm‚ and he was given the tough audit engagement for the Altamesa Manufacturing Company. Tommy figured this engagement would help him get in good with the partner that was in charge of the audit‚ Jack Morrison. The only problem was he was assigned Carl‚ who is a fresh-faced staff accountant who has been working at the company for less than three
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Introduction Apple Inc. is a company that focuses on development and marketing of personal computers‚ media devices‚ design‚ and portable digital music players. Also‚ the company sells a variety of related software‚ services‚ peripherals‚ networking solutions‚ and third-party digital content and applications. The company ’s portfolio of offerings comprises Mac computing systems‚ iPods line of portable digital music and video players‚ iPhone handsets and iPad portable multimedia and computing devices
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Livent. Inc Overview In the year 1979 Drabinsky and Myron Gottlieb decided to enter the show business world. These two young entrepreneurs were able to convince a well-known Toronto businessman to invest one million in “cinema complex”. Over the next several years Drabinsky and Gottlieb were successfully able to expand their company‚ while they convinced to gather up large sums for the development of multiscreen theaters complexes throughout Canada and the United states. By 1980 Cineplex Odeon
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Chesapeake Petroleum & Supply Inc. operates as a distributor of automotive lubricants and other related products in the Mid-Atlantic region. It offers bulk and packaged oils‚ filters‚ anti-freezes‚ wiping materials‚ lubrication equipment‚ refrigerants‚ disposable wipers and absorbent pads‚ sealants‚ wiper blades‚ reconditioning and car wash chemicals‚ floor mats and seat covers‚ aerosols‚ ECP protective coatings‚ wheel weights‚ hydraulic fluids‚ and diesel fuel supplements (Company Overview). The
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