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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ACC 461 Auditing Financial Statement Fraud: Lessons from the ZZZZ Best Case The video “Cooking the Books” discussed the ZZZZ Best case of fraud‚ it tells how and why fraud was perpetrated by Barry Minkow and why it was undetected for so long. According to the video‚ ZZZZ Best was founded by Barry Minkow in 1982; when he was sixteen years old‚ it started as a carpet cleaning company. But‚ due to high competition in the industry‚ low entry barriers‚ and bad internal control‚ this young entrepreneur
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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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investigate further and gather evidence in order to support the numbers given in the financial statements. This type of review report does not provide enough assurance that is needed in order to have a better 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
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Best Answer - Chosen by Voters well first off Invictus was a short poem written by a british poet by the name of William Ernest Henley and was first published in 1875. the word invictus is latin meaning "unconquered" but the poem in itself no one is quite sure the meaning behind it. but many have come up with their own interpretations of it. like saying he’s making reference to how each one can choose how his life will play out and how we ought to try and keep right....many linking his poem to
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Auditing Concepts ZZZZ Best Company‚ Inc Case Solutions: 1. A review is performed to obtain a reasonable basis for providing limited assurance that the client’s financial statements have been prepared in conformity with generally accepted accounting principles. An independent audit is designed to provide a reasonable basis for expressing an opinion concerning whether or not a client’s financial statements have been prepared in accordance with generally accepted accounting principles.
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33 Question 1 33 Question 2 33 Question 3 33 Question 4 34 Question 5 34 Question 6 34 Question 7 35 Question 8 35 CAT 3 1993 36 Question 1 36 Question 1 b. 36 Question 2 36 Question 3 a. and b. 37 Question 4 37 Question 5 38 Question 6 38 Question 7a. 38 Question 7b. 39 Question 8 39 VCE CAT 3 1994 40 Question 1 40 Question 2 {criterion 2} 40 Question 3 {hardware & software compatibility} 40 Question 4 {economic and social issues} 40 Question 5 41 Question 6 41
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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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industry. If he would have performed these routine procedures‚ Gray would have realized that ZZZZ Bests reported insurance restoration revenue was grossly overstated. Furthermore‚ AS No.9.7 states that the auditor should have knowledge of the “company’s internal control over financial reporting obtained during other engagements performed by the auditor.” Larry Gray did obtain any information regarding ZZZZ Bests internal control over financial reporting during other engagements and took a rather standardized
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( Answers to Mini-Case Questions BioCom Inc. This mini-case provides a review of the methodology and rationale associated with the various capital budgeting evaluation methods such as payback period‚ discounted payback period‚ NPV‚ IRR‚ MIRR‚ and PI. 1. Compute the payback period for each project. |Time of Cash Flow |Nano Test Tubes |Microsurgery Kit | |Investment |−$11‚000.00 |−$11‚000.00
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