all this cases in this link https://bookshelf.vitalsource.com/#/user/signin
1-waste management
1-Review Waste Management’s Consolidated Balance Sheet as of December 31, 1996. Identify accounts whose balances were likely based on significant management estimation techniques. Describe the reasons why estimates were required for each of the accounts identified.
2-The Waste Management fraud primarily centered on inappropriate estimates of salvage values and useful lives for property and equipment. Describe techniques Andersen auditors could have used to assess the reasonableness of those estimates used to create Waste Management’s financial statements.
3- Several of the Waste Management accounting personnel were formerly employed by the company’s auditor, Arthur Andersen.What are the risks associated with allowing former auditors to work for a client in key accounting positions? Research Section 206 of the Sarbanes−Oxley Act of 2002 and provide a brief summary of the restrictions related to the ability of a public company to hire accounting personnel who were formerly employed by the company’s audit firm
2-satyam computer services limited
1-Research PCAOB auditing standards (which can be found on the PCAOB’s website – www.pcaob.org) related to the use of confirmations and document the specific requirements related to maintaining control of the confirmation process.
[a] Based on what you learn, provide an assessment of deficiencies in the confirmation approach Satyam’s auditors took related to cash and accounts receivable.
[b] Do auditing standards require the use of confirmations in the audits of cash balances and accounts receivable balances?
2- Research the difference between American Depositary Shares and American Depositary Receipts. Then, visit the SEC’s website (www.sec.gov) 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).
3-Research auditing standards and other guidance on effective internal control to answer the following questions: [c] What are IT general controls and what type(s) of IT general controls were compromised in the Satyam fraud?
[d] What is meant by the term management override and how was that revealed in the Satyam fraud?
3-Burlingham Bee
1-Using the information provided, please develop a precise expectation (i.e., using the detailed or disaggregated data provided) for ticket revenues for the 2018 fiscal year.
2- (a) What are the advantages of using analytical procedures as substantive tests? (b) If the engagement team decides to use analytical procedures for the Bees’ audit, how will the audit plan differ from prior years? (c) Discuss whether you believe analytical procedures should be used as substantive tests for the Bees 2018 audit?
3-(a) How close does the Bees’ reported ticket revenue for 2018 have to be to your expectation for you to consider reported ticket revenue reasonable or fairly stated (i.e., provide a high level of assurance)? (b) If reported ticket revenues were outside your “reasonable range,” what could explain the difference? (c) Would you consider it acceptable for auditors to design substantive analytical procedures to obtain moderate or low assurance by accepting a difference between reported and expected revenue that is 2 or 3 times the size of audit materiality?
0 comments