Financial audit

Situation (a) 1. In this case, Brock Lesnar as a member of the audit team has a borrowing guaranteed by the audit client - Richardson which is not a bank or similar institution, then according to APES 110. 290.120, a self-interest threat is created. In accordance with APES 110.290.120, if a member of the audit team accepted a loan which is guaranteed by an audit client that is not a bank or similar institution, the self-interest threat to independence would be so significant that no safeguards…

accounting. So to begin, a basic understanding of derivatives is that they are a binding contract between two or more parties. The contract is for a future transaction of some underlying financial asset. The purpose for companies to implement derivatives are to aide them in managing risk by using a type of financial forwards, futures, options, or swaps. For example, a forward contract is when Company A believes Company B’s stock price will substantially increase over the next year. However,…

What is Six Sigma? • Statistical measure and a management philosophy • Used to symbolise standard deviation • A measure to determine how good or bad the performance of the process is i.e. how many mistakes the company commits while carrying out the process. The dabbawalas were awarded the six sigma certificate by the Forbes Magazine as part of the quality assurance study carried out by the magazine n their operations. What it meant was that the dabbawalas made one mistake in 6 million…

Investments Ltd & others v NAMA & others Introduction The appellants: DELLWAY INVESTMENTS LIMITED and Others The respondent: NATIONAL ASSET MANAGEMENT AGENCY and Others NAMA was set up to take over all the ‘bad loans’ from the banks when the financial crisis happened. The Government then put money into the banks to help them and to fix the balance sheets. McKillen took NAMA to court because NAMA took over all of the McKillen loans from the banks. McKillen said however that his loans were…

company audit is the controversial issue in the case given. It had justified that the independent auditor relied on the delivery receipts as the audit evidence based on the ‘segregation of duties’ system. The case here explained that JGI’s internal control procedures for inventory had been executed by different person as the purchasing, receiving and approving functions are performed by the different people than the person who executed the transactions. Different people executing different audit…

Garcia and Weir’s staff, SYF corporation, SYF employees, unnamed client, Billy Hart, Steve Vincent, SYF’s stock holders and the rest of the firm’s partners. Brent’s actions and integrity left all the addressed stakeholders at risk for a substantial financial loss. This is the reason I wholeheartedly agree with the final actions of the firm managing their situation. Ultimately, Hart could’ve elected a different approach in dealing with Mydland’s deceitfulness. Billy had the opportunity to ignore…

Donald Cressey’s “Fraud Triangle” is a classic model used to clarify a widely-supported hypothesis of why the occupational offender commits fraud. (Sridhar Ramamoorti , Daven Morrison ,Joseph W. Koletar, 2009)According to the ACFE, occupational fraud is“the use of one’s occupation for personal enrichment through the measured misuse or misapplication of the employing organization’s resources or assets. The source of fraud lies in voracity and the opportunity for deception. It has severely…

WorldCom had recently been caught up in an accounting scandal, forcing the SEC to take a closer look into many large corporations’ accounting procedures. One of these corporations was Qwest Communications. While looking into Qwest, the SEC determined that Qwest had been improperly following the accounting guidelines and had inflated their revenue by billions. In 2004, the SEC charged Qwest Communications International Inc. with securities fraud and other violations of the federal securities…

The financial responsibility of a nonprofit governing board includes its ability to achieve the organization’s mission over time. How does the board and CEO/executive director address each of the following? • Oversight by state and federal regulators; • Identifying and managing financial risk; • Management of finances and fiduciary oversight; • Communicating financial transparency. The Board’s approach: • Oversight by state and federal regulators; When there is an evident oversight in the…

KNOWLEDGE OF FORENSIC ACCOUNTANTS A forensic accountant is an expert in accounting and financial methods. When the companies keep on growing in size and density, detecting fraud requires a forensic accountant to become skilful in an ever-increasing number of professional skills and competencies. Here are some of the broad areas of expertise for a forensic accountant: • There should be an in-depth knowledge of financial statements and the capability to critically analyze them. This expertise…