Auditing

SATYAM SCANDAL- INDIA’S OWN ENRON The Satyam Computer Services Limited company’s wrongdoing is a corporate scam that occurred in India in 2009 where the chairman, Mr. Ramalinga Raju revealed that the company’s accounts had been falsified. Background In 1987, Ramalinga Raju established Satyam, with his brother and brother in law, for providing software development and consultancy services to large firms. The company became public in 1991 and was listed on the Bombay Stock Exchange (Balachandran…

Serving the needs of all the stakeholders with the help of effective internal control systems, policies and procedures lay the foundation of excellent corporate governance. Corporate governance concentrates on management as well as on shareholder’s wellbeing . Internal as well as external corporate governance helps organization in board culture, their share price in market, future need for raising capital and the most important is to gain shareholders trust. The internal and external check upon…

The Alexandria Business Association (ABA) is classified as a non-profit foundation that develops initiatives and utilises innovative approaches to supply small and micro-enterprises (SMEs) with a line of credit to support growth and development. ABA aims to develop and promote existing small and micro enterprises to raise funds and income of SMEs, to help the transformation of SMEs from the informal sector to the formal sector, and ultimately contributing to solving and reducing the radical and…

Billy Hart did a tremendous job by looking out for the firm’s best interests and following his principles of perceived personal integrity as a professional. As a matter of fact, Billy Hart is known to have cultivated great relationships with the auditing staff under his supervision that probably stems from his consistency in abiding by his principles of integrity. According to Rosty (2017) “People notice inconsistencies…

requirements for all United States public company management, boards and public accounting firms. This was the Sarbanes-Oxley Act, also known as the “Public Company Accounting Reform and Investor Protection Act” in the Senate, and the “Corporate and Auditing Accountability and Responsibility Act” in the House of Representatives. (REFERENCE). In addition to setting new requirements for public companies, there are also numerous provisions of the Act that apply to private companies as well.…

The COSO ERM framework is a broader version of the earlier framework and stated that that the categories of objectives should be one that follows (a) strategic objectives: which are goals aligning with the company’s mission/vision (b) Operational objective which imbeds performance and productivity (c) effective internal and external reporting, financial and non-financial (d) compliance with applicable laws and regulation. The COSO framework does not only reflect the assessment of hard controls…

Inventory turnover has steadily decreased over the reported four years. The inventory turnover ratio explains how many times a company’s inventory is sold and replaced over a period of time. A lower inventory turnover ratio indicates that Crazy Eddie is selling fewer inventories. Asset turnover also took a pretty big plunge. The asset turnover ratio is the amount of sales generated for every dollar in assets. A low asset turnover ratio indicates that the firm is struggling to use its assets to…

Cost & Benefits of Sarbanes-Oxley Act There are many debates related to the cost and the benefits of the act. The supporters of this act claimed that it was absolutely essential and played a main role in rebuilding the public’s trust in the U.S. stock markets, and in strengthening the corporate accounting principles. On the other hand, the opponents argued that since SOX, the complex regulation, was enacted, U.S. financial service providers lost their competitive edge against foreign providers…

AIT 612 Class 3 - Classroom Participation Case Study: Banking Scenario Prof: Arthur R. Friedman Date: 09/17/2017 Submitted by: Ujwal Rai, Shalikram Bhandari & Rajendra Shrestha 1. Background information and threat: In past few days, our IT security team had been investigating on a fraudulent act on one of our customers’ bank account. The customer noticed the unusual activity on his bank account as the ATM statement he received at bank did not match with the monthly statement he…

From the global financial scandals to corporate financial fraud, there has been increasingly focuses and recognition on the significant role of corporate governance in ensuring sound financial policies and fraud prevention. This research aims to identify the relationship between internal audit and senior management, and specifically focuses on the gap of perceptions and expectations of the value of internal audit function in monitoring of fraud prevention with respect to each other in New…