• Zzzz Best Fraud
    ZZZZ Best Company Fraud Case Study 1) At an early age, Barry Minkow was introduced to the carpet cleaning industry by his mother who worked part time as a telephone solicitor for a small carpet cleaning company. This insight of the industry allowed Minkow to understand that the carpet cleaning...
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  • 1.9 Zzzz
    restoration sites. Comment on the limitations of the evidence that these procedures provide with regard to the management assertion of occurrence. Answer: Obtaining third-party confirmation can be a good way to build evidence in an audit, but the evidence is built to the extent of what the third-party knows. In this case, ZZZZ Best had told third parties one thing but was doing a completely different thing than what...
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  • Zzzz Best
    came from insurance restoration contracts, George Greenspan, the first auditor of ZZZZ Best, contacted Tom Padgett to confirm the existence of the insurance restoration contracts. Padgett, being in on the fraud, lied and gave Greenspan a positive answer. 2. Misleading auditors: Barry Minkow...
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  • Zzz Company
    management. In the case of ZZZZ Best, Minkow retained Ernst & Whinney to perform the following year’s audit. However, instead of performing an Audit, they decided to provide a review of the company’s financial statements for the three-month period ending July 31, 1986. They chose not to perform an...
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  • Zzzbest
    ZZZZ Best Case Assignment #2 Question 1: 15 points AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315, explain the following: A. As the successor auditor, what was E&W supposed...
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  • Zzzz Best
    might influence E&W’s decision to accept ZZZZ Best as a client? Defend your opinion with information from the case. C. As the predecessor auditor to Price Waterhouse, did E&W follow the professional standards in paragraphs .03-.10 in their communications with Price Waterhouse? In your answer...
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  • Case 1.9
    Case 1.9 Question 1: Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for the three months ended July 31, 1986. How does a review differ from an audit, particularly in terms of the level of...
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  • knapp case 1.9
    Knapp Case 1.9- ZZZZ Best Company, Inc. 1. A review consists of an auditor performing analytical procedures and inquiries to provide a reasonable basis for obtaining limited assurance. In a review, the auditor does not give an opinion on the financial statements. He/she merely looks over the...
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  • Miniscribe
    bondholders in their suit against Mr. Wiles, MiniScribe’s auditing firm (Coopers & Lybrand), and its investment banker. The claim against Coopers & Lybrand reportedly was later settled for $45 to $50 million. Case 2—ZZZZ Best Carpet Cleaning In 1982, at age 16, Barry Minkow started the ZZZZ...
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  • zzzz best company case study
     ZZZZ BEST COMPANY, INC. Source: Contemporary Auditing: Issues & Cases - Michael Knapp On May 19, 1987, a short article in The Wall Street Journal reported that ZZZZ Best Company, Inc., of Reseda, California, had signed a contract for a $13.8 million insurance restoration project. This...
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  • Zzzzbest
    ZZZZ BEST COMPANY, INC. Source: Contemporary Auditing: Issues & Cases - Michael Knapp On May 19, 1987, a short article in The Wall Street Journal reported that ZZZZ Best Company, Inc., of Reseda, California, had signed a contract for a $13.8 million in¬surance restoration project. This...
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  • Zzzz Best Case
    ZZZZ Best case case1.9 Q1 There are three different levels of services you could obtain from a certified public accountant. These are referred to as compilation, review, and audit. There are significant differences between the objectives of an audit of financial statements in accordance with...
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  • Auditing Cases
    ZZZZ Best Company, Inc. Case 1.9 Gemstar-TV Guide International, Inc. Case 1.10 New Century Financial Corporation Case 1.11 1 Madoff Securities Copyright 2011 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part...
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  • Exam 2
    sufficient amount of appropriate evidence at the lowest total cost. • 8 Types of evidence, just for feet case with the confirmation process, zzzz best did not do the actual physical examination (failed to meet the existence and occurrence assertions, audit evidence not sufficient). Lack professional...
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  • Zzzz Best Company, Inc.
    well as Accounting profession. In this case it is proven that the negligence of two auditors had allowed a firm to operate by doing a big fraud to earn profit. Even after two audits, the auditors were not able to catch the fraud in the firm. It was caught when a normal women who was defrauded by ZZZZ Best, kept the track of all credit card forgeries done by ZZZZ Best...
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  • Zzzz Best
    financials all of Barry Minkows deceitful work had come to an end. Despite some last minute risky moves to save ZZZZ Best the company was no more 3 months later. This case was informative in the sense that it caused not only SEC filing procedures to be changed but it forced the Auditing regulations to be...
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  • Zzzz
    CASE 1.9 ZZZZ Best Company, \nc. On May 19,1987, a short article in The Wall Street Journal reported that ZZZZ Best Company, Inc., of Reseda, California, had signed a contract for a $13.8 million insurance restoration project. This project was just the most recent of a series of large...
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  • ratio
    frauds can pop out when certain numbers don’t make sense. The inescapable logic of the accounting equation ensures that any major overstatement of assets or profits, such as in the infamous ZZZZ Best case, will show up over time. Days’ Sales in Receivables Index This sales index (or ratio...
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  • Case Zzzz Best Company
    Case 1.9 ZZZZ Best Company, Inc, 1. Ernst & Whinney audit firm suffered tremendously from the backlash of ZZZZ Best’s case. One of the issues stemming from ZZZZ Best’s case is the difference between a review and an audit as evidence by civil suit filed by a California bank against the firm...
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  • Zzzz Best Case 1.9
    Auditing Concepts ZZZZ Best Company, Inc Case Solutions: 1. A review is performed to obtain a reasonable basis for providing limited assurance that the client's financial statements have been prepared in conformity with generally accepted accounting principles. An independent audit is...
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