Arthur Andersen LLP was the auditor for Enron, WorldCom, Waste Management and other companies that committed fraud. Andersen was forced to shut its doors forever after a U.S. Department of Justice lawsuit against the firm charged that it had obstructed justice and lied to the government in the Enron case. One thing Andersen had done […]

Assume you are an accounting manager at a mid-size company. The CEO asks you to omit or leave out certain financial figures from the Balance Sheet that would reflect negatively on the company to investors and the public. Because this request does not involve a direct manipulation of amounts or records, would you agree to […]

Describe the three phases of an information systems audit and provide a practical example of each of the phases.   DQ2 Factors in an Effective Systems Audit [CLO: 5]. 1st Post Due by Day 3. Describe the concepts of IT governance and control objectives for information and related technology (COBIT) and discuss how these concepts […]

 Standard-Setting Process..   Briefly explain how the financial statement preparers, users, and other interested parties are involved in the standard setting process for U.S. GAAP. Referring to the Forbes article “The only three reasons entrepreneurs need accounting and finance”, explain how the need to measure progress is satisfied by GAAP and the process used to […]

Auditing and Fraud Detection   Anderson: An Obstruction of Justice? (pages C1-C4)   GM: Running on Empty? (pages C11-C13)   KPMG: How Many Firms? (pages C17-C19)   For each question, be sure to support your answers with facts, not just opinions. Be sure to properly cite sources according to APA style as outlined in the […]

Assume that Stanford CPAs encountered the following issues during various audit engagements in 2014: Stanford conducted the audit of Luck, a new client this past year. Last year, Luck was audited by another CPA, who issued an unmodified opinion on its financial statements. Luck is presenting financial statements for 2013 and 2014 in comparative form. […]

CAATs Application: Inventory with Boos & Becker Inc CAATs Application: Inventory with Boos & Becker Inc [CLOs: 1, 3, 4]. Due by Day 7. Read problem 9.53CAATs Application: Inventory on pages 405 and 406 of the textbook and complete the following:   In general and without regard to the preceding facts, discuss the nature of […]

Internal Control Considerations in End-User Computing Environments [CLOs: 1, 3, 4]. Due by Day 7. Read problem H.54 Internal Control Considerations in End-User Computing Environments on pages 875 and 876 of the textbook.   Required:   Assume that you are participating in the audit of Chicago Appliance Company and that the background information was obtained […]

Test of Controls over Cash Receipts [CLOs: 1, 3]. Due by Day 7. Complete problem 6.50 Test of Controls over Cash Receipts on page 258 of the textbook. Considering Gutzler’s internal control over cash receipts and the standard audit procedures already performed, list all other audit procedures that should be performed to obtain sufficient and […]

Horizontal and Vertical Analysis [CLOs: 1, 2, 3]. Due by Day 7. Complete problem 4.55 Horizontal and Vertical Analysis on pages 159 and 160 of the textbook. Study the data in Exhibits 4.55.1 and 4.55.2. Write a memorandum identifying and explaining potential problem areas where misstatements in the current-year financial statements could exist. Be sure […]