External auditor

Zynga, Facebook and Groupon, such social media company would better to use an independent auditor for unique social media accounting. The revenue of those companies was made by converting real dollars from selling virtual goods to customers. In order to negotiate an appropriate accounting way to record the revenue, Ernst & Young, the public auditor for Zynga and Facebook, made three revenue-recognition methods for social media and gaming companies. The first model is game-based. The company…

criticisms, the Sarbanes-Oxley Act remains largely intact. The benefits are detailed in many studies and are summarized by Coates and Srinivasan, 2014. These studies have shown that firms now incorporate economic losses in a more accurate timeframe. Auditors have…

that individual. It should be a choice where you will get fulfillment out of your occupation. Most importantly, it should be a choice that is made by the individual only. The profession I’ve decided that would be best for me would be an Internal Auditor. Many question why I would enter in this line of work. I use to ask myself this very same question. After eight years of being in the financial field, I couldn’t picture myself doing anything else. I have a real passion for this line of work…

corporate governance failures/weaknesses of PCH PLC which affected to arise such failures/frauds within PCH PLC. Throughout this discussion it is expected evaluate the board structure & board balance, Chairman’s role as the CEO, board committees, external auditor’s responsibility, agency dilemma, behavior of shareholder favoritism and significant changes in the board of directors when company began to fail. Board Structure & Board Balance When listing the PC house PLC the board…

In order to prevent such fraud happening again, auditors need to pay attention much on details. Previous examples caused the lack of high degree of judgement such as “built-in excuse”, which produced inherent risk to obtain money by approval of auditors. Auditors have to identify the risks of misstatement by comprehending the entity ad its environment (ASA 315). Similarly, the second example created auditors did not prevent financial information and material misstatement, which…

independence of auditors establishing long-term personal and professional relationship with companies by auditing those companies. Respectively companies that retain the same auditors for long period of time may perhaps question their independence and objectivity. The failure of financial reporting at Enron, WorldCom, Lemon Bother and others, led to financial reporting reforms. Audit firm rotation is suggested to be a way of improving audit quality, hence limiting the number of years to five an…

Enron Case Introduction After watching the video “Enron: The Smartest Guys in the Room”, (Youtube), several issues came into light. It is known that Enron has been the seventh largest company to declare the bankruptcy in the year 2001. The reasons of their bankruptcy were becoming clear as many investors lost millions of dollars, due to which the lawmakers sought to enact some legislation so that these activities could be prevented. Obviously the smartest people from Enron had entered various…

The audit process, which can be considered the systems and methods an auditor uses in order to gather sufficient audit evidence, this can vary from firm to firm as well as auditor to auditor (Manita & Elommal, 2010). The main factors that will influence the audit process will be how compliant the audit teams are regarding the auditing standards, laws and control procedures, the level of interaction between the audit team and relevant parties, and finally the amount of appropriate audit…

chose similar actions. Auditors are known as the watchdogs of accounting. Their primary responsibility is to guard the best interest of the public. “The auditor’s obligations are to certify that public reports depicting a coronation’s financial status fairly present the corporation’s financial position and operations” (Duska, Duska, & Ragatz, 2011). During the WorldCom scandal, Arthur Anderson, originally one of the big five accounting firms, failed their duty as auditors and overseers of the…

semester 8. Then, I write about the statement of the problem with the objective of the study and details of research which including the proposed methodology. In the end, I will write the conclusion and recommendation. Industry The UAE Internal Auditors Association IIA Global Affiliate was founded in 1995 so this parent company which…