Audit

The audit committee review the external audit strategy yearly, and they also have an external auditor who will give his opinion about how the company have operated and if there has any place the company should pay attention in the future. By the way, the external auditor does not have any contractual obligation to the company’s current choice (Diageo Annual Report 2016 Interactive). Depending on these suggestion, the audit committee will submit a report to board…

Ambiente (FEAM) that the companies would be responsible for taking the safety measures and “to hire independent audit firms to do the evaluation of the stability and safety of their enterprise”. In the case of Samarco, the reports with regard to the stability and safety should be sent annually to the environmental authorities. In 2012, Samarco did all the safety processes and passed the audit, although, due to the increase of the production and to damage from natural use, it was required by the…

at 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…

Introduction Financial reporting has changed a great deal over the past fourteen years. Many companies have went out of business for the most significant reason; unethical behavior in the work place. The Sarbanes-Oxley Act of 2002 was created to enforce financial reporting regulations and the punishments for non-cooperation. Before 2002, the regulations for financial reporting were less severe than they are presently. Companies weren't as worried about being under the radar if they decided to…

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 that “it…

[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.…

Trauger asked you to help him alter the 2000 NextCard audit workpapers? In answering this question, identify the alternative courses of action available to you. Also identify the individuals who may be affected by your decision and briefly describe how they may be affected. http://www.llsdc.org/assets/DoddFrankdocs/crs-r41350.pdf I believe Flanagan had largely three choices when Trauger asked him to assist him to manipulate the 2000 NextCard audit workpapers. 1) Ignore the partner’s…

Company Fraud In the 1970’s “fair trade” laws allowed manufacturers to require retailers to sell merchandise at the same price to avoid price competition for their products (Antar, 2011). This type of regulations force Eddie Antar to look for a different alternative in order to remain in business. It appears as if his only options were to purchase overseas and overstock from other retailers. Crazy Eddie stores had one goal in mind; sell a product to every customer that walked into their stores.…

Evaluating Cost Reductions PPC is a small public plastics manufacturing organization which. The organization first became a publicly listed organization three years ago, and has experienced a large impact of the recent recession. The organization has taken several steps within the past year to reduce costs. The question has arisen as to whether said cost reduction actions are an operation issue or a control deficiency, of if said cost reductions are a material weakness or a significant…

concept of auditing CLO 1. It has three types of audits such as operational, compliance, financial statement and forensic audit. The internal auditors are one of types of auditors. Also, the internal auditing is a part of the internal control over the financial reporting. Moreover, CLO 2 which is assessing audit risk and audit evidence. The auditing has three kinds of audit risk which are inherent risk, control risk and detection risk. The concept of audit evidence is when the auditors auditing…