Internal consistency

From the case it is clearly reflected that Hi-Sail Company's balance sheet was not as per the standard. The president and the chief financial officer along with client showed some sense of urgency to get the incorrect audit fieldwork (Draft of balance sheet) from the auditor without last year’s potential tax liabilities, debt related to join ventures information etc. During audit information was not correctly provided to the auditor. To handle this situation the first action…

Andersen failed to comply with the idea of independence to separate with the client as different parties in work, interest, and human resources. Enron worked with Arthur Andersen closely in many different types of accounting services including internal auditing, external auditing, and consulting. With all the time being spent in Enron, Arthur Andersen was not able to differentiate the purpose of their work. Enron…

Facts The internal auditor of G-BioSport realizes some unusual entries that have possibilities to bring about the sign of fraud because the entries are not compliant with GAAP. The internal auditor sends an email to the accounting manager of G-BioSport, who is currently in charge of those entries, in order to investigate further. However, Owen Silver, the accounting manager of G-BioSport, claims that G-BioSport’s accounting vice president, Kenneth Loeb, has personally authorized him to make the…

occurrence of overgeneralization. A potential threat to the internal validity of this study was the short amount of time between the start of the study and the onset of the participant’s LCVA. The participant’s performance on tasks within the study might have been influenced by spontaneous recovery. Other similar studies investigating the use of SPT for AOS utilized participants that were at least one year post-onset to control for threats to internal validity. External validity is also…

One of the most frustrating involvements we have as humans is the fact that we enter more and more contracts as working adults. Why does everyone seem to want to enter a contract in recent times? Where do we go when things are so convoluted or cryptic in the fine print of a simple download or update. How do we get answers for the contracts that we are aware of moreover, how do we defend against those that we are unknowingly a part of? How challenging might it be for us to interface with a false…

According to the Federal trade commission, the FTC issued the Safeguards Rule, which requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure. On July 30, 2002, The Sarbanes–Oxley Act was created also known as the "Public Company Accounting Reform and Investor Protection Act" (Investopedia, 2014). Then the main purpose of the act is to protect shareholders from fraudulent representations in the financial statements which is why the act…

1. When a company is used as sham or façade. The company was incorporated and used as a “mask” to conceal the real purpose of the company controller. Incorporation is always been used as a device to circumvent the law of the hide the true side of affairs from the court (Woon, 1988). In the case of Re FG (Films) Ltd, a film called “Monsoon” was made by FG Films. This company had registered office but does not have premises and employees. All the facilities and the finance were provided by an…

SATYAM SCANDAL- INDIA’S OWN ENRON The Satyam Computer Services Limited company’s wrongdoing is a corporate scam that occurred in India in 2009 where the chairman, Mr. Ramalinga Raju revealed that the company’s accounts had been falsified. Background In 1987, Ramalinga Raju established Satyam, with his brother and brother in law, for providing software development and consultancy services to large firms. The company became public in 1991 and was listed on the Bombay Stock Exchange (Balachandran…

sales people also agreed to this. If the statement issued by the CEO of the company is true, that means that the internal control of the company is dysfunctional in some way especially when being referred to the definition of Control and ethics because on their Integrated report Lewis states that they have committee’s and procedure that are put in place for assurance of proper internal control like the board charter, a governance structure, audit committee, risk committee, social, ethics and…

non-audit work for the same client. The Act (Sarbanes-Oxley Acts s 201 (a) 2002) listed the following as the non-audits services that should not be performed together with the audit by the accounting firm to the same client. • Actuarial services • Internal audits outsourcing servicing • Designing and implementing the financial information system • Valuation and appraisal services • Experts and legal services that are not related to the…