Case 2.9 Powder River Petroleum International, Inc Essay
• Fraudulent Financial Reporting Risk for Revenue
• Other Areas of Fraud Risk. From year-end 2004 through the first-quarter 2008, defendant Brian Fox misled the investing public by fraudulently inflating the revenue and assets and fraudulently omitting major liabilities, of Powder River Petroleum International, Inc. (“Powder River” or the “company”) in the company’s Commission filings, and by making other false and misleading public disclosures. From year-end 2004, Powder River conveyed working interests in oil and gas leases to investors in Asia for over $43 million. Because Powder River promised full repayment of the working interest …show more content…
6. PCAOB rules require that a registered public accounting firm comply with certain quality control standards. A firm should establish policies and procedures to encompass, among other things, (a) personnel management, (b) acceptance and continuance of clients and engagements, and (c) engagement performance.
• PCAOB standards require a firm to "undertake only those engagements that the firm can reasonably expect to be completed with professional competence. In calendar years 2006 and 2007, the Firm failed to comply with this