Reference no: EM133275825
Case Study (1) - Accounting Fraud and Auditor Legal Liability Satyam Computer Services Limited
Question
Research the difference between American Depositary Shares and American Depositary Receipts. Then, visit the SEC's website to locate the final SEC rule Release No.33-8879 issued on December 21, 2007 and research whether foreign issuers must file with the SEC financial statements in conformity with generally accepted accounting principles (GAAP).
Based on what you learn, provide an assessment of deficiencies in the confirmation approach Satyam's auditors took related to cash and accounts receivable.
Do auditing standards require the use of confirmations in the [b] audits of cash balances and accounts receivable balances?
The Satyam auditors attempted to confirm both cash and accounts receivable balances with external parties. Which of the audit assertions for cash and accounts receivable would confirmations be most relevant?
Research PCAOB auditing standards related to the use of audit documentation and identify specific requirements related to deadlines for including audit documentation in the engagement workpapers, such as the documentation completion date. Also, identify requirements related to what must be documented on the workpaper, including the date of preparation of audit documentation and the identification of the preparers of the documentation. Based on your findings, provide your assessment of how PW Bangalore violated these requirements.
Research the AICPA's Code of Professional Conduct to research what it means to be in a "network" of firms. How might the actions of one of the accounting firms in the network impact other members of the network?
Case study (2) - Collins Harp Enterprises-Recommending IT Systems Development Controls
Questions
In this case, students are required to prepare a draft letter to Linda Seth, IT vice president at Collins Harp. The partner would like a letter that:
Describes deficiencies in the Collins Harp IT system development [1] and program change process.
Provides a brief description explaining your primary concern for each deficiency noted in question 1.
Includes a recommendation of an IT system development control that could be implemented to minimize your concern for each deficiency in question 1.