• Happiness Express, Inc. Case 2.3
    Wee receivable at the end of fiscal year 1995. The auditors ignored the suspicious nature of the large receivable from Wow Wee and West Coast Liquidators that resulted from credit sales recorded by Happiness Express in late fiscal 1995. Happiness Express booked fictitious sales on the final day of...
    Premium 1241 Words 5 Pages
  • Advanced Auditing Case 2.3
    from 1994 to 1995 and because of this, I think that is was easy for the auditors to believe that the employees were simply overwhelmed by the company’s alarming growth and made mistakes as a result. 3. Yes Coopers & Lybrand should have confirmed the receivable from West Coast Liquidators at the end...
    Premium 674 Words 3 Pages
  • Happiness Express Inc
    auditors performed the confirmation process, they kept contacting Goldberg and using him as an intermediary, which is a violation of independent standard. 3. Yes, the Coopers & Lybrand auditors should have confirmed the receivable from West Coast Liquidators at the end of fiscal 1995. The large...
    Premium 823 Words 4 Pages
  • Happiness Express, Inc. Case 2.3
    . 3. Should the Coopers & Lybrand auditors have confirmed the receivable from West Coast Liquidators at the end of fiscal 1995? Why or why not? Should the auditors have included one or more sales to West Coast Liquidators in their year-end sales cutoff tests for fiscal 1995? Generally if the...
    Premium 1138 Words 5 Pages
  • Audit Notes
    failed to follow up on investigation, which leads to the conclusion that his actions were reckless. 3) The auditors absolutely should have confirmed the receivable from West Coast Liquidators at the end of fiscal 1995. The materiality of the sale ($2.4 million) was quite substantial, as it...
    Premium 1222 Words 5 Pages
  • Happiness Express
    Express’ sales and accounts receivable, which prevented the firm from discovering the bogus sales and receivables entered in the company’s accounting records near the end of fiscal 1995. This case examines the audit procedures that Coopers & Lybrand applied to Happiness Express’ sales and...
    Premium 2560 Words 11 Pages
  • Case 2.3
    were recorded in the last month of the current period and accounted for 13% of the total accounts receivable. Because of these red flags, the account should have been verified by the auditors. The auditors should have included more sales to West Coast Liquidators in their audit because of the size and...
    Premium 831 Words 4 Pages
  • Happiness Express Inc
    .   Cooper & Lybrand should have absolutely confirmed the receivables by West Coast Liquidators. They made up 13% of the years end accounts receivable with the majority of that amount occurring in the last month of FY 1995. The firm’s policy and procedures manual also indicated a potential material...
    Premium 320 Words 2 Pages
  • Phar Mor Case
    audit. The fraud team indicated that one reason they were successful in hiding the fraud from the auditors was because they knew what the auditors were looking for. 7. Related parties. Coopers & Lybrand, in a countersuit, stated that Shapira and Monus set up a web of companies to do business with Phar...
    Premium 8484 Words 34 Pages
  • Contemporary Auditing
    the given auditors? Would you characterize the mistakes or errors as “reckless” or “fraudulent”? In each case, justify your answer. 3. Should the Coopers & Lybrand auditors have confirmed the receivable from West Coast Liquidators at the end of fiscal 1995? Why or why not? Should the auditors have...
    Premium 286111 Words 1145 Pages
  • Happiness Express
    definitely keep it for next class. It was a good way to start of this class. Not looking forward to reading the 23 pages about the PCAOB however! Questions: 2.) A major mistake that Coopers & Lybrand made during the effort to confirm the Wow Wee receivable at the end of the fiscal year was to notice...
    Premium 599 Words 3 Pages
  • Case 4.6. Phar-Mor Inc.
    , Phar-Mor filed again for Chapter 11 bankruptcy to restructure their operations in an effort to return to profitability. Phar-Mor’s securities have been delisted from the NASDAQ. • In late 1995, Coopers & Lybrand, LLP settled with Phar-Mor as well an many investors and creditors banks who...
    Premium 8104 Words 33 Pages
  • Waste Management
    . However, on September 24, 2001, Phar-Mor filed again for Chapter 11 bankruptcy to restructure their operations in an effort to return to profitability. Phar-Mor’s securities have been delisted from the NASDAQ. ƒƒ In late 1995, Coopers & Lybrand, LLP settled with Phar-Mor as well as many investors and...
    Premium 33542 Words 135 Pages
  • Mr Wright Case
    West Coast. A Grant Thornton auditor contacted WI's customs broker regarding Wilbur explanation. The customs broker told the auditor that Wilbur' explanation was valid. Near the end of 1993 audit, a Grant Thornton auditor stumbled across a large stack of Form 9540-1 documents in the receiving office...
    Premium 3413 Words 14 Pages
  • What's Wevenue?
    midsummer 1994, as much as 70% of quarterly revenue was false. The company had ignored early warnings, such as their auditor Price Waterhouse LLP telling them they had weak internal controls. After announcing their 1994 write off another audit took place by Coopers & Lybrand. While Coopers feels that...
    Premium 1015 Words 5 Pages
  • Bausch and Lomb
    example, fattened fall sales by giving buyers until the following spring to pay. As a result, the unit's accounts receivable nearly tripled from June to December. Although the soaring receivables should have been a clear sign to Gill and other top executives that the growth could not be sustained, B&L's...
    Premium 6827 Words 28 Pages
  • Phar Mor
    the money but confirmed the scheme. Monus was tried for jury tampering and acquitted. Several investors in Phar-Mor filed a civil suit against the company's auditorsCoopers & Lybrand. A jury decided in 1996 that the accountants committed common law and federal securities law fraud by falsely...
    Premium 5244 Words 21 Pages
  • Ferrarini, Guidici the Parmalat Case
    certain price but, later on, had to give back part of the price as it was discovered that some receivables were in fact not recoverable (Efim v Coopers & Lybrand)96 and, more interestingly, the successful claim of a company that had sued its auditors, directors and statutory auditors because it had...
    Premium 25391 Words 102 Pages
  • Happiness Express Inc
    from this case is just how important an audit is for not only the company but for the public as a whole. Case Questions 2) First mistake Coopers and Lybrand made was not contacting the company themselves to confirm that all the sales at year end were accurate. They also should not have told...
    Premium 712 Words 3 Pages
  • Summer Internship Report
    and liquidators. From these two practices evolved the two large Indian professional firms of Price Waterhouse (PW) and Lovelock & Lewes (L&L). PW was a member of the PW global network while L&L was aligned to the Coopers & Lybrand network. Almost from inception, these were the two...
    Premium 10187 Words 41 Pages