Audit committee

other agencies and or auditing firms as well. First, the most important organizational control to implement in a case such as this one is a whistleblower program. However, one might argue; if the top is corrupt and did not formed an independent audit committee to oversee the organizational structure and controls there is not much one can do from the inside. Since the article inferred that collusion was rampant throughout the firm. The program should also include extending this information to…

Dallas Gold & Silver Exchange, a jewelry company, created and filed with the Commission materially inaccurate financial statements since 2009. I. John Benson, the Chief Financial Officer of DGSE, was found to manipulate the amounts of inventory for 2009 and 2010 by inflating millions of dollars (Jacobson, 2012). He exploited the inappropriate controls of DGSE and made some fraudulent accounting entries; He concealed them with false inventory details and management representation letter. Mr.…

[7] Assume that a close family member came to you with information about a potential fraud at his or her employer. Prepare a summary of the advice you would offer as he or she considers taking the information forward. Before advising information about a potential fraud, it is important for the individual to have an understanding of the facts giving rise to concern. Because understanding of the facts, it helps to avoid prematurely filing a complaint that may be based of perception or emotion.…

This project goal is to make the standards very similar and comparable for public, non-public and international auditors. Yet, there are some differences that still exist related to some audit requirements and language variation . One of these standards is that is considered part of the risk assessment process is “Audit Planning Standard”. The risk assessment and responses to assessed risks is one of the sections GAAP and ISAs differ on . The standard includes an introduction, objectives,…

blame to be spread around for the collapse of Enron • Arthur Andersen – Allowing the fees to cloud their professional judgement. To allow for questionable and complex accounting practices to continue via the SPE’s. Also, the destruction of Enron audit documents • Enron – Kenneth Lay/Jeffrey Skilling – The emphasis that was placed on a big profitable bottom line to increase the value of their company and their direct reward for such profits. They discounted the loyalty and the harm that it…

The nature of strategic risks arises from the external environment of the company and requiring the Board of Directors to design a risk management process that would reduce the likelihood of assumed risk occurring and also improve on the company’s ability to manage the risk should they occur. Kaplan and Mikes (2012) stated that a company can voluntarily accepts some risk in order to generate superior returns from its strategy. Chapman (2011) declared that when providing a strategy for a business…

COSTCO’s Internal Audit To: Management From: Audit Committee Date: December 6, 2015 Subject: Internal Audit The purpose of the internal audit is to protect Costco's assets through evaluating the acceptability and efficiency of internal controls; recognizing areas of possible risk, revenue improvement and/or cost reductions; and making sure transactions are authorized, completed, and logged as proposed. Costco normally knows sales, net of probable returns and at the period the member takes…

the Sarbanes-Oxley Act of 2002(SOX). While I do believe that SOX has addressed many key issues , such as requiring the CEO and the CFO to be held liable for all financial disclosures and has increased the ethical requirements of the corporate audit committee. There are still many problems that have not been dealt with. One of those issues involves independence. Are auditors truly independent if they are paid by their clients for their services. Another problem…

In some cases, a member is involved with more than one committee depending on personal skills to perform in the committee. Our preparation also includes the provision of transportation and accommodation for student members of ACS and also invited guests. All of this are parts of the preparation stage which needs serious attention and should…

business and one of the worst things that has happened to America” (Serwer, 2006). Michael Gallagher, chairman of the Professional Practice Executive Committee of the Center for Audit Quality, which is affiliated with the AICPA, said that “he saw the positive impact of SOX every day in his job as a managing partner of PricewaterhouseCoopers’ audit quality functions”. Gallagher said “SOX has led to fewer financial restatements, improved disclosures, and earlier identification of fraud”. He said…