1) At Peregrine, the risk factors, especially those aligned with control environment factors and the “tone at the top” are discussed. The risks included having a paper based confirmation system for the entire business; no segregation of duties, which meant that only one or very few people were working on the financial statements, and in this case Mr. Wasendorf was the only one and had altered all bank documents using only Photoshop, excel, scanners, and printers. Continuing on, time off was not…
there were errors in the external validity in the article. For example, the title used testing ability to generalize the GRE reading and working memory increments which was incorrect because they were not appropriate operationalizations of the conceptual definition of testing ability. Nevertheless, the article adequately described the participants as undergraduates and stated the partial findings properly. Thus, the article reported the construct validity and external validity of the study with…
1. The issue of auditor liability is detrimental to the profession and requires serious examination by regulators and lawmakers alike. Any one of the Big 4 could easily collapse should the full amount of any one of their lawsuits be awarded. Auditor liability becomes an even more poignant issue if new auditing standards are enacted that permit ranges of balances on the financial statements. This would highlight the inherent limitations of financial reporting. As a profession, we need to…
Attention-deficit hyperactivity disorder (ADHD), is diagnosed when children display persistent age-inappropriate symptoms of inattention, hyperactivity and impulsivity. Since ADHD is one of the most common (3% to 5%) childhood mental disorder, a lot of controversies debated whether behavioral therapy (BT) or medication alone (MM) would be more efficient as the treatment for ADHD (Arnold et al., 1997, p.865). In 1992, the Collaborative Multimodal Treatment Study of Children with ADHD (the MTA),…
Audit committee expects the external auditors to figure out all material errors and instances of frauds which is nearly impossible. Accounting Scandals due to External Auditors: Corporate accounting scandal frequency in the last past decade is alarming and has caused the public to question the role of the auditors in corporate governance. The numerous…
1. What clues caused Jane to suspect that fraud was involved? The first clue that Jane came across as suspicious was that some of the checks did not have a complete endorsement from the collectors. This would be suspicious because if a check was cashed without having the necessary endorsements there must be a breach in the company’s internal controls. After looking further into the situation Gus and Jane notice that along with the endorsement problem the signatures of several different…
According to section 301.4 of SOX 2002, the public company audit committee is required to implement procedures for the receipt, retention, and treatment of complaints received by the whistleblowers concerning auditing matters, internal accounting controls, or accounting. Also, the complaints have to be treated confidentially by the audit committee by making whistleblowing procedures for the submission around dubitable accounting or auditing matters to be anonymous. To encourage this, the audit…
Internal Control and an external audit that needs to provide an opinion on its reliability. The section requires a report that acknowledge the responsibility of management for creating and maintaining internal controls in order to manage the risk that can potentially cause inaccurate, fraudulent or incomplete data to be disclosed to stakeholders. The report should also contain the effectiveness of the internal control structure as of the end of the most recent fiscal year. External auditors…
After stepping into Major Warren’s position, there are several considerations that could be made and certain activities that could be done differently from his initial implemented plans. When preparing for such an extraordinary meeting, it is important when the planners consider other factors apart from the intelligence reports that are available. As a planner of such an event of this magnitude, the first thing to do is to assess the past events that have taken place in the country of such…
There are a lot of many different companies in many different industries across the globe. One of those industries is the accounting industry. Which has many different careers and titles; there is tax accountants, forensic accountants, financial advisors, and auditors. This essay will discuss what the PCAOB does, some consequences if firms do not do their audit correctly, a recent lawsuit, and what they did in result after the lawsuit. Like other accounting firms, the PCAOB has several duties.…