Describe the company and industry at the time of the fraud

Assignment Help Accounting Basics

Reference no: EM133844636

After investigating financial statement frauds, the U.S. Securities and Exchange Commission (SEC) issues Accounting and Auditing Enforcement Releases (AAERs). When frauds are revealed, auditors are often implicated for failing to discover that the F/S were materially misstated. In many cases, information indicating high FFR risk existed, requiring the auditors to design and perform the engagement to appropriately respond to those risks via the scope of substantive tests. In this problem, you will analyze the SEC Complaint against Arthur Knapp, the CFO of OCZ Technologies Group, Inc. Requirements: [i] Company & Fraud Risk Factors. Briefly describe the company and industry at the time of the fraud. Then, discuss factors you believe were important to the auditor's assessment of FFR risk for the OCZ audit. [ii] Fraud & F/S Accounts/Assertions Affected Briefly summarize all fraud techniques employed at OCZ and identify the accounts misstated. Discuss the specific F/S assertions affected for each account and explain why those assertions were affected. [iii] Significant Risks of Material Misstatement. Consider the accounts affected by the fraud. Do you believe the auditors likely judged all the accounts manipulated as having significant risks of material misstatement when planning the audit? Explain. Discuss in 2-3 pages.

Reference no: EM133844636

Questions Cloud

Explain how drugs of abuse act as positive reinforces : Explain how drugs of abuse act as positive reinforces? Choose any commonly abused drug in KSA and explain about the abuse problem from that drug?

Evaluate the methodologies and methods employed : Evaluate the methodologies and methods employed within these research projects. Evaluate methodology and method within the context of management studies

Which diagrams did you find most difficult to understand : What were the biggest challenges on the project and how were they overcome? Which of the diagrams did you find most difficult to understand?

Describe how she applied the capacities : Describe how she applied these capacities. Provide a timestamp from the video and page numbers for readings to indicate where the relevant information.

Describe the company and industry at the time of the fraud : Briefly describe the company and industry at the time of the fraud. Explain why those assertions were affected.

Daughters chronic condition : A family of a pediatric client diagnosed with leukemia is having a difficult time adjusting to their daughter's chronic condition.

Electronic clinical decision support systems : Electronic clinical decision support systems, such as DrChrono, CureMD, Fusion, Modernizing Medicine, and others, are increasingly being used

Medical decision making of moderate complexity : The ED physician documents a detailed examination, medical decision making of moderate complexity, and a detailed history.

Provide examples of post implementation items you will need : provide examples of post implementation items you will need to manage and support in the first five days, the first four weeks, and the first six months.

User Account

All Pages