During the Simply Soups, Inc. audit, we were responsible for confirming the balances for each of the company’s bank accounts. The purpose of sending confirmations is to obtain a reasonable expectation that the balances presented on the books reflect the actual values recorded by the banks, addressing any issues of existence. In addition to providing validation from a reliable source, confirmations also allow us to reconcile any issues concerning money in transit. For Tenth National Bank, we have reason to believe that the client intercepted the paper confirmation. After we sent the paper confirmation to the bank, we received an email from Lou Jennings stating that the bank forwarded the confirmation directly to their office instead of sending it to the audit team. In addition, Mr. Jennings provided login credentials and a link to the bank’s website, which did not appear to be reliable. As per the video, “How to Fight Confirmation Fraud”, presented by the founder of confirmation.com, Brian Fox, a fictitious website can be created easily. Our skepticism toward the reliability of the website is based on the unresponsiveness of most of the links on the site; the only link that works is the login button. In addition the website appeared dated and rudimentary. Another factor we found quite strange is that the website only offers paper statement deliveries, which we find highly unusual since paper statements are easier to modify. Furthermore, based on the tracking provided by USPS, the letter is still in the shipping process with no indication that Tenth National Bank has officially received the request for confirmation. This further supports our theory that Lou Jennings intercepted the Tenth National Bank confirmation letter. In our o... ... middle of paper ... ...iary. We achieved that by requesting a SOC3 report from the third party and interpreting/learning about the boundaries of their system. We learned that the company maintained effective controls over its system, which included controls over the infrastructure, software, people, and procedures. Therefore, we concluded that the system works effectively and the information gathered through this third-party intermediary will be reliable. Conclusion: Overall, the work performed to test the relevant financial statement assertions and the evidence gathered has led our audit team to conclude that the confirmation issues encountered may signify that a potential for material misstatement exists. For example, the existence of a line of credit in one of the Financial institutions indicates that we need to perform further investigation to assess the reliability of the findings.
During Hydromaint's audit, you and Pam had a number of discussions. You, Pam, and Mike Johnson are generally satisfied that the accounts are in accordance with GAAP and are supported by underlying facts. Pam tested Jerry's pension accounting (which she found to be correct) by preparing a pension worksheet based on data contained in the actuary's report:
Results of the preliminary investigations are indicative of both systemic and discrete failures, the most prominent being in regards to:
Electronic confirmations are often used to verify bank balances, but they can also assist in the verification of a company’s vendors. Therefore, I am going to request confirmations from Wayland Manufacturing Company’s vendors after the client accepts my request. The electronic confirmations will prove each vendor’s existence as well as the accuracy of the accounts payable subsidiary ledger balances. Evidence collected from third-party sources must remain confidential and I maintain my integrity by only seeking evidence I am authorized to review. If I decide to request Cash electronic confirmations without consent, I am violating integrity, confidentiality, and professional due care (AU Section 330-The Confirmation Process 1998) (Arens, Elder, & Borsum 2013) (AICPA Code of Professional Conduct
The need among Americans to be diverted in ever more imaginative ways -- through high-thrill parks, virtual reality arcades, and theme restaurants, plays right into the hands of Dave Corriveau and Buster Corley, co-founders and CEO’s of Dave and Busters. The duo’s 50,000 square foot complexes include pool hall, an eye popping, cutting edge midway arcade, a formal restaurant, a casual diner, a sports bar and a nightclub rolled into one sprawling complex. In business since 1990, this is a high energy, highly efficient operation that’s comparable to a Vegas extravaganza. As a matter of fact there are even “for fun” cashless blackjack tables, with fake $10,000 chips. Pricey, but not outrageous, and you get value for your money.
Due to this, the confirmation process has become of high risk. Third party intermediaries have been established to assist in this process by securely transmitting information to the bank and validating the authenticity of the respondent. The use of third-party intermediaries makes it more difficult for anyone to alter confirmation requests. There are risks that come with the use of third party intermediaries because the intermediary’s control weaknesses or deficiencies fall on the auditors as well when relying on confirmations received through them. Auditors must assess that the intermediary’s system of internal control has been designed and is operating effectively to meet the PCAOB
Campbell’s Soup Company has become a household staple for many families around the world for over 100 years. Founded in 1869 by fruit merchant Joseph Campbell, and icebox manufacturer Abraham Anderson, Campbell’s Soup Company was first called the Joseph A Campbell Preserve Company. They sold canned jellies, tomatoes, vegetables, condiments, soups, and minced meats. Campbell’s has become a worldwide company with annual sales of more than $8 million. In 1876, Abraham Anderson left the company. In 1882, Arthur Dorrance joined Joseph Campbell, starting the beloved Campbell’s Soup Company.
The Deloitte & Touche auditors should have first and foremost determined a materiality level for North Face’s complete financial statement. The auditors would have planned the materiality to the maximum amount in which they believed the financial statement could be misstated and would not affect their decision. The auditors would have reviewed and determined the extent and nature of the risk assessment procedures, and in addition, they would have identified and assessed North Face’s risk of material misstatement. Furthermore, the auditors would have determined the nature, timing, and extent of all further North Face auditing procedures. Lastly, the auditors should have reviewed all financial statements to ensure they were presented fairly and truthfully in conformity with the generally accepted accounting principles. The Deloitte & Touche auditors should have set a benchmark to assist them in determining the materiality of the financial statements for North Face. They could have utilized the assets, liabilities, equity, income, and/or expenses of the income statement; they could have also used North Face’s financial position, financial performance, or cash flows
In the case study of Pacific Acceptance Case, they established 10 principles and one of it was that whenever an auditor feels some suspicious activities, which may be because of some irregularities and which indicates towards some fraud, the auditor must take some action (Gay & Simnett 2010, p. 156). In our case study there was no action taken by the auditor even though they came to know that impulse was going through liquidity problems which was due reduction in inventory turnover and debtor turnover.
Introduction: Food Inc. is an American documentary film directed by Emmy Award winning film maker Robert Kenner. The film examines corporate farming in the United States. concluding that agribusiness produces food that is unhealthy, in a way that is environmentally harmful and abusive to both animals and employees. It is a powerful tool. startling indictment of industrial food production,revealing truths about what we eat.
Ben & Jerry’s Homemade, Inc. is a leading manufacturer of super premium ice cream, frozen yogurt and sorbet in unique and regular flavors. The Ice Cream Company embraces a philosophy of being real and “down to earth”, being humorous and having fun, being non-traditional and alternative and, at times, being activists around progressive values. Co-founders, Ben Cohen and Jerry Greenfield, have been seen as role models for running a business that is both profitable and socially responsible and committed to using only natural ingredients in its products. With flavors like Cherry Garcia, Chubby Hubby, Chunky Monkey, Phish Food, and Rainforest Crunch its no wonder that they are known as the “Woodstock of ice cream”.
* Balanced and reconciled all bank deposits in an effective, efficient and expedient manner and responsible for the auditing of money transactions
...e financial reports and statements are correct. This auditing will be conducted by auditing department of the organization, even may be done by an independent auditor who is not part of the organization, and sometimes public officials are elected. In case of unmatched consequences the organization need to give explanation on the misrepresentation of wrong statements. Auditors purpose is then to ensure that the misrepresentations are corrected, then maintain accurate, reliable financial documents and statements.
University of California, Berkeley, n.d. Web. The Web. The Web. 25 Jan. 2014. What is “online fraud”?
The fundamental duty of an external financial auditor is to form and express an opinion on whether the reporting entity’s financial statements are prepared in accordance with the relevant financial reporting framework. In discharging this duty, the auditor must exercise “reasonable skill, care and caution” (Lopes, J. in Kingston Cotton Mill Co 1896) as reflected in current legal and professional requirements.
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.