Audit Essay Examples

During the Progressive Era (1880-1940), advertisers and auditors encountered challenges regarding the accuracy of their text. Advertisers in North America embraced the notion of “truth in advertising,” while auditors disapproved of labeling financial statements as “true and fair.” Instead, auditors preferred financial statements that adhered to accepted accounting principles. Interestingly, auditors made more advancements towards […]

Arthur Andersen: Questionable Accounting Practices Describe the legal and ethical issues surrounding Andersen’s auditing of companies accused of accounting improprieties. The legal issues that surrounded Andersen’s audition were that there was conflict of interest and there was lack of independence on the part of Andersen. In this context, Andersen took up lucrative management consultancy projects […]

Scenario Diageo Africa is a 1bn net sales value, 300m trading profit drinks business that operates in over 40 markets across Africa through various business models including publicly quoted companies, joint ventures and licensed brewing arrangements. In Nigeria it trades under the name Guinness Nigeria and will be referred to as such from this point. […]

This paper aims to assess and analyze the financial statement of Starbucks, a globally recognized publicly traded company. To conduct this evaluation, the following sources were utilized: the 2010 10-K report, DataMonitor company profile, Mint Global, NetAdvantage Corporate Social Responsibility reports, as well as various online sources. Over four decades ago, Starbucks Corporation originated as […]

Jane Ashley, a staff accountant at Viccio and Martin, has previous experience working for the firm and participating in numerous audits. Is she qualified to work on the audit team with senior auditor Frankie Small? The current assignment is to conduct an audit on Models Inc., which happens to be the top paying client of […]

Revenue is probably the most important part of the government and most of its plans and policies also depend on the amount of revenue collected. Government has also given priority in reducing the budget deficit through the mobilization of internal resources. Good tax system, apart from generating revenue, minimizes distortion of resource allocation and simplifies […]

Have you ever told a lie? In most causes after telling one small lie another lie follows. After time passes and the lies began to seem like the truth, you dig yourself into a pool of lies which eventually contradicts your first lie. The same truth happens to Nick Lesson and his 8-8-8-8-8 account. It […]

A. What is the nature of General Mills’ business? That is, based on what you know about the company and on the accompanying financial statements, how does General Mills make money? i. General Mills is the leading producer of packaged consumer goods. The company has 3 segments US Retail, International, and Bakeries and Foodservice. General […]

1. What concepts in this chapter are illustrated in this case? System vulnerabilities Computer crime: using computers as instruments of crime to defraud the bank, customers, and other financial institutions Internal threats from employees: Jerome Kerviel has access to privileged information; he was able to run through the organizations system without leaving a trace Business […]

If I were in Hamilton Wong’s position, I would feel compelled to report every single one of my hours worked on the Willie & Loman audit. The practice of underreporting your hours or “eating time” as Wong called it, is highly unethical and can lead to many future problems in the workplace. Although it is […]

Red Bull’s success is attributed to its focus on the Red Bull drink and its sugar-free variant. The company’s strategy involves building a strong brand image through sponsorship of major events and emphasizing its core strengths. Leveraging its powerful international brand, Red Bull products gain significant recognition even before entering new global markets. The brand […]

Higher Education Institutions are frequently the focus of attention since they represent valuable resources for any country. They produce the educated men and women that often become the social, political, technological, economic, and religious leaders of the country. Because of the changes that have occurred in the restructuring of the education system as well s […]

The main critical issue in the Crazy Eddie case is the incompetence and lack of professional skepticism of the company’s audit team and their inability to successfully comply with the standards of GAAS. The auditors failed to exercise the fundamentals of the substantive audit plan which would have uncovered at least some of the fraud. […]

1. Review the facts in the case, especially the charges in the complaint, and evaluate the auditors’ compliance with GAAS. Do you think the auditor did all they could to detect the fraud? Evaluate whether auditors exercised due care and the level of professional skepticism to be expected in an audit the size of Parmalat. […]

Jim Turley has been identified by many as one of the most successful corporate leaders across the globe. Since his ascended to the role of the chairman in 2001 and later in 2003 to become the Chief Executive Officer of Ernst & Young, Jim has been on the forefront in striving to make the organization […]

Yes, it matters that Friehling didn’t do any audit work. It matters because he signed off on financial statements verifying that he had. He played a great part in Madoff’s misconduct by falsely representing to investors that Madoff’s company was financially sound when in fact he hadn’t done a single audit. It without a doubt […]

An important part of business strategy is concerned with ensuring that resources and competencies are understood and evaluated, a process that is often known as a Strategic Audit. The external environment in which a business operates can create opportunities which a business can exploit, as well as threats which could damage a business; however, to […]

It was discovered that Stumacher did not follow the professional guidelines and standards laid down by the professional bodies governing the audit of financial statements, when he undertook the job of auditing Video’s financial statements – for the fiscal year 2002 and fiscal year 2003. The depth to which he did not follow the guidelines […]

Question 1 Three conditions are often present when fraud exists. First, management or employees have an incentive or are under pressure, which provides them a reason to commit the fraud act. Second, circumstances exist – for example, absent or ineffective internal controls or the ability for management to override controls – that provide an opportunity […]

Barry Minkow started a carpet cleaning business in his garage at the age of 16. One year later, Barry decided that hid business does not bring him much profit and began his fraudulent activities. He was running false credit card charges on clients’ cards and check kiting. However, he was able to commit fraud on […]

1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. When it comes to immaterial effect on a set of financial statements I would say that clients should not accept all proposed audit adjustments. By clients […]

Lehman Brothers had humble origins, tracing its roots back to a small general store that was founded by German immigrant Henry Lehman in Montgomery, Alabama, in 1844. In 1850, Henry Lehman and his brothers, Emanuel and Mayer, founded Lehman Brothers. While the firm prospered over the following decades as the U. S. economy grew into […]