Solution-What do control deficiencies imply about approach

What do control deficiencies imply about approach deloitte

Assignment Help Auditing

Reference no: EM13886445

Refer to the Professional Judgment in Context feature "Thor Industries, Inc. and Mark Schwartzhoff: Fraudulent Reductions in Cost of Goods Sold Through Manipulation of Inventory Accounts." Answer the fol- lowing questions.

a. List the incentives and opportunities that enabled Schwartzhoff to commit the fraud. Speculate on his possible rationalizations.

b. What do the control deficiencies imply about the approach Deloitte should have used to audit the inventory-related accounts and assertions on the Thor and Dutchmen audits? Discuss your answer in terms of the relative mix of evidence in the form of tests of details, substantive analytics, and tests of controls. Why might Deloitte auditors have lacked professional skepticism regarding the financial results of Dutchmen?

c. What substantive audit procedures (both tests of details and analytical procedures) could have detected this type of fraud earlier?

Reference no: EM13886445

Questions Cloud

What appears to have been the incentives to commit the fraud : What appears to have been the incentives and opportunities to commit the fraud? Comment on the likely ethical dilemma that Cynthia Cooper faced when she initially uncovered the fraud.

Write the velocity potential f and stream function c : Superimpose a uniform ?ow parallel to the x-axis of 10 m=s and a source at the origin of strength q ¼ 10p m2/s. (a) Write the velocity potential f and stream function c.

What is its density and specific gravity : A body lighter than water requires a force of 20 N to hold it under water. If it weighs 75 N in air, what is its density and specific gravity?

List inherent control and fraud risk factor relevant to case : List the inherent, control, and fraud risk factors relevant to this case. State plausible reasons that KPMG audit personnel may have lacked professional skepticism in their audits of Ace Hardware.

What do control deficiencies imply about approach deloitte : What do the control deficiencies imply about the approach Deloitte should have used to audit the inventory-related accounts and assertions on the Thor and Dutchmen audits?

Your audit firm has recently been engaged : Your audit firm has recently been engaged as the new auditor for Pinnacle Manufacturing effective for the audit of the financial statements for the year ended December 31, 2013.

Find the velocity potential f : Show that the ?ow represented by c ¼ 10 lnðx2 þ y2Þ m2=s is an incompressible ?ow. Also, (a) Find the velocity potential f.

Management forecasts call for after-tax cash flows : The Auraria Pet Foods Company is considering the purchase of more flexible equipment that will allow them to create new products and will also be less expensive to operate than the current machinery. The existing equipment could be sold for $70,000 a..

Determine the pressure force of the water on the window : A submersible has a viewing window that is 60 cm in diameter. Determine the pressure force of the water on the window if the center of the window is 30 m below the surface and the window is horizontal

User Account

All Pages

What do control deficiencies imply about approach deloitte

Reference no: EM13886445

Reference no: EM13886445

Questions Cloud

Reviews

Write a Review

Auditing Questions & Answers

Internal audit

Accounting professional and ethical standards

Prepare swag''s consolidated balance sheet

Auditing and assurance

State of the company’s industry and associated risk factors

Prepare a memo to the audit partner

Adjusting or non- adjusting events

Audit financial data

Identify principal audit risk

Auditing and assurance

National health reform

Prepare a memo on the state of the company''s industry

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT