Financial audit

establish standards and provide guidance concerning the auditor’s assessment of the risks of material misstatement in a financial statement audit and the design and performance of audit procedures whose nature, timing, and extent are responsive to the assessed risks.” (Risk Assessment, 2017). An auditor doing a risk assessment would look at materiality, results from previous audits both internal and externa, data sources, among others and the auditor must look at the level of risk as well.…

Pride Goeth Before Destruction Enron, the quintessential company of the 1990’s, is infamous for its rise and more so for its fall. It’s bankruptcy and dissolution in 2001 was the largest in US corporate history to date when it occurred (Ferrell, Fraedrich, & Ferrell 487). The downfall of the company was brought about by shady accounting practices, a cutthroat company culture, a do-what-it-takes mantra. Ultimately, the prideful and greedy natures of the executives at the helm lead to the…

After pronouncing judgment in Ghasi Ram on February 7, 1968, Hidayatullah, J., decided Om Prabha Jain v. Abnash Chand on the same day dealing with the same issue, i.e., whether making of discretionary grant by a Minister on the eve of election amounts to bribery or not. Applying the test laid down in Ghasi Ram, i.e., "that a Minister in the discharge of his duties may be required to do some acts of administration including the granting of money for the uplift of a certain communities and this…

the conditions and place where the property was found one can infer whether the property was left there intentionally or unintentionally. Benjamin v Lindner, 534 N.W.2d at 407. In Benjamin, while inspecting a plane Benjamin Heath found two packets wrapped in aluminum foil containing $18,000 tied in string and wrapped in handkerchiefs. Id at 403. In order to carry out the inspection Benjamin had to remove panels from the underside of the wings. Id. He used a drill to remove the screws on the…

mainly as an energy trader, was responsible for generating revenue in the range of approximately $111 billion in the year before its 2001 collapse. The collapse and eventual bankruptcy of Enron impacted individuals from the highest level executives, financial institutions, company employees, and even the average everyday working class people, whose…

The board of directors have to approve the budget. Issue the budget. Create a bound version of the budget and distribute it to all authorized recipients.Load the budget. Load the budget information into the financial software, so that you can generate budget versus actual reports.Verify loaded budget. Compare the budget loaded into the accounting software to the approved budget version, and adjust for any errors.Lock down budget. Initiate password protection…

Since Kadex Corporation treated the purchase of property, plant, and equipment like a repair and maintenance expense, Jones & Scranton would likely discover the error (even though they are only auditing the third year and the error occurred in years one and two) in a number of ways. First, when the auditors verify the existence of the property, plant, and equipment, they will discover plant and equipment items that are not listed on the assets list. Second, when the auditors determine the…

According to utilitarian, Lerome plays a vital role within economic system making sure the benefit of the whole society is taking place. Lerome had no personal intention to lose a job or anything, but he stood for the society. He stood for all those mothers and for those entire infants who would drink apple juice. He had an ethical responsibility towards the public and the company. The Zonar Corporation paid the research and development team and so did the contractor paid their team for the…

Enron, WorldCom, Tyco and Sunbeam because these companies collaborated with their auditors and provided misleading financial reports to their investors and shareholders. Consequently, the Sarbanes Oxley Act of 2002 was enacted by the U.S. Congress to protect investors from the possibility of fraudulent accounting activities by corporations by mandating strict reforms to improve financial disclosures from corporations and preventing accounting fraud (Staff, 2017). It is vital to compare and…

If I was the CEO of Countrywide Financial, I would incorporate a strict protocol regarding guidelines on income, appraisals, and documentation. I would use this protocol to structure the evaluations of salespeople to prevent them from making unethical loans to borrowers to simply receive increased compensation. I would structure the evaluations of salespeople to account for documentation verification. This verification process would total 85% of their total evaluation score. By increasing the…