External auditor

Donna Hogan, store manager of a shoe store, pleaded guilty to charges of stealing $71,128 cash from the business. This amount was accumulated from over 697 transactions over a period of 2.5 years. Hogan managed to use false refunds and receipts from shoes that were still in the store. She would then take the funds from the till where she spent it mostly on clothes. According to her psychiatrist, this was motivated by “depression and emotional disconnection”, however, the prosecutor argued it was…

KPMG was in charge to keep the interests of the shareholders well protected. Independently, Halliburton’s external auditors, KPMG should have taken into consideration the audit of the entire company. Any unethical or fraud founded should have been sent to the management. These slight events would have prevented any unethical situation from occurring at the end. However, the external auditors didn’t commit to it, and failed to keep the ethical environment and its corporate governance in…

workplace. Case study 2 The process of auditing is a long one. It starts first with a notification, this notification letter comes from the external auditor, informing you of an upcoming audit, attached to the notification letter is a preliminary checklist, to make sure all the correct financial statements are in order for the auditor. The next step in the auditing process is planning, this once after reviewing the information, they conduct an engagement risk assessment, draw up an…

He also said that his relationship with Deloitte was very close, third only to his relationship to his family and the CEO. It casted doubt on the independence of external auditors. 7) Independence Problems with the Company’s Investment Bankers  Independent problem with its investment banks. After Citron Research paper of Longtop released on April 26, 2011. On May 4, 2011, a Morgan Stanley analyst still wrote: “We believe…

ability to manage risk and work in close collaboration with third party auditors. Able to look beyond the numbers and offer meaningful interpretations. Effective leader and mentor. • Statutory & Financial Reporting • Management Reports • Inter-Company Reporting • KPI Reporting & Analysis • ASIC & ASX Compliance • Risk Management…

Sue is obligated to be loyal to her company, so even if she were to put in an honest effort, it is likely that she will not be able to perform an audit to a professional standard. The auditor must remain objective – judgments cannot be clouded because the auditor wants to please a client. 3.a) As an external auditor, TK&R is meant to be an outside, objective inspector. When such a tipoff of inventory not being done for a long time turns out to be solid, then of course the guilty party (CWO)…

Inc., it’s more reliable to test support documents from external sources. Therefore, we have to request the cash confirmation from the third party. On October 30th, 2015, we sent and received the cash confirmation which was the positive confirmation for Simply Soup Inc. The purpose for sending positive confirmation is that we want the recipient to respond whether the recipient's records do or…

PART A: Question 1. Describe the principal activities of the company? Thorntons is a British multi-channel confectionery retailer, which is considered as the leading premium chocolate brand in the UK, with shopper purchase exceeding £300 millions in 2014. The company operates through two business segments, namely retail and fast moving consumer goods. The main activities of Thorntons include manufacturing, retailing and distribution of high quality chocolate, toffee, and fudge with luxury and…

implement and inforce, we need to look to the auditors for putting into action and scrutinizing practices of companies as well as governing auditing bodies to lobby government for legislative changes. Therefore a compliance audit is required here. An annual compliance audit from a firm that is independent from BMIS in fact and appearance would have been crucial in finding and reporting fraud. This would have determined whether BMIS was complying with external criteria such as specific laws i.e.…

necessary to obtain that the organization is showing true and fair view or not. Before starting any auditing first Company’s business process must be understood and also the auditor should know how the company uses its information technology and how this information technology affects the financials of the company. The auditor should have knowledge about manual control work and automated work which will be helpful for assessing the risk of material misstatement. Auditing can be of two types: 1.…