External auditor

Rastetter called Leath a successful president during his five-year tenure but said regents must “ensure that our universities are run in a manner that the people of Iowa expect and demand.” The board’s audit committee voted to order its internal auditor to review flights that Leath had and that the report must be detailed and answer all questions the public has about Leath’s trips. The audit found…

Soon after, auditors determined that HealthSouth falsified over $2.7 billion in profits. The fraud was so extensive and widespread that it included fifteen executives of HealthSouth, including five of its CFOs since the 1980s. All fifteen of them plead guilty to purposefully misleading investors or auditors through use of fraudulent accounting. Richard Scrushy was repeatedly identified as the leader of the fraud…

Their milestone was to ensure that corporate reporting were transparent and that executives and auditors assumed liability for such reporting. On July 30, 2002, President George W. Bush signed the Sox Act, which was meant to improve the accuracy and reliability of corporate disclosures and was supposed to protect…

Adding to the Enron fiasco, according to authors Johnstone, Gramling, and Rittenberg, internal documentation at Andersen unveiled conflicts between their auditors and the audit committee of Enron concerning the accounting and disclosure practices at Enron. Andersen executives, however, wittingly did not act on this information. In fact, the authors state that David Duncan, the managing partner on Enron’s audit…

risk management and control process. The connection between internal auditing and risk management are fairly straight-forward. Internal auditor would not achieve their objectives without risk assessment and management. In order to achieve the objectives, one must to analyze the risk via enterprise-wide risk management. According to the Institute of Internal Auditor or the IIA, enterprise-wide risk management refers to the process conducted by management to understand and deal with risks and…

evidence mix will impact on this case. BHP Billiton is a large business which has low inherent risk and complex internal control in this situation, thus, the auditor need to apply the extensive test of controls and reply on the company’s internal control due to business have high control risk (Arens et al. 2013, p.297). Moreover, the auditor needs to cut the amount of testing on substantive tests of transaction and test of details of balance. Because it will save time and money to become more…

Issues In Corporate Governess Various issues keep on popping in various corporate from time to time but i have chosen one of the most famous case of its time. Toshiba Accounting Scandal Toshiba Corporation is a Japanese multinational conglomerate corporation having its headquartered in Tokyo, Japan. In 2010, Toshiba was the world's fifth-largest personal computer producer. It has vast variety of products including information technology and communications equipment and systems, electronic…

Every year, the most important statement the government makes is the approval of their budgets because it reveals in financial terms what their priorities are. A budget is defined as a plan expressed in dollars. It is the use of financial resources to meet the needs of organizations. All police agencies operate within a budget. A budget can also be defined as operating and capital. An operating budget usually covers a 12-month period and is covers salaries, fringe benefits, uniforms, crime scene…

The auditors could have detected this embezzlement and fraud by performing additional audit procedures for cash and inventory. With respect to cash-skimming scheme, the auditor could investigate further on the “Office” line item of certain cash report sheets by inquiring the company’s personnel and the management. Similarly, the auditor could also use analytical procedures to gain an overall assessment of sales and profitability across individual stores. Because the cash receipt was taken into…

entirely in their favor. Title1established an additional authoritative body to endorse the execution of quality audits. Moreover, users are reassured that the auditors’ work is up to par through the PCAOB’s frequent investigations. Indisputably, however, more rebuffs than advantages subsist with Title I of SOX for corporations and their auditors. While Title I of SOX ensures corporations that their audits are conducted in a quality manner—hence, perchance evading any future impediments— Title I…