Audit Paper Tommy Case

Good Essays
2. Assume that you are Tommy O’Connell and have learned that Carl Willmeth will be working for you on the Altamesa audit engagement. Would you handle this situation any differently than Tommy did? Explain
We would begin the audit engagement the same as Tommy, but after realizing that Carl’s work might not uphold the auditing standards of the engagement, bring it to the attention of Morrison. According to the AS 10 p.5 (b)- Supervision Of Engagement Team Member- direct engagement team members to bring significant accounting and auditing issues arising during the audit to the attention of the engagement partner or other engagement team members performing supervisory activities so they can evaluate those issues and determine that appropriate actions are taken in accordance with PCAOB standards; Moreover , according to the note in AS 10 p.5-b , In applying due professional care in accordance with AU sec. 230, each engagement team member has a responsibility to bring to the attention of appropriate persons, disagreements or concerns the engagement team member might have with respect to accounting and auditing issues that he or she believes are of significance to the financial statements or the auditor's report regardless of how those disagreements or concerns may have arisen. Tommy also must be mindful of the assignments given to Carl based on his lack of expertise and knowledge. AU 230.06 mention asset that Auditors should be assigned to tasks and supervised commensurate with their level of knowledge, skill, and ability so that they can evaluate the audit evidence they are examining. The auditor with final responsibility for the engagement should know, at a minimum, the relevant professional accounting and auditing standards and should be knowledgeable about the client. The auditor with final responsibility is responsible for the assignment of tasks to, and supervision of, assistants. However it is effective for audits of financial statements for periods ending

You May Also Find These Documents Helpful

  • Good Essays

    The auditor must adequately plan the work and must properly supervise any assistants. | Jones did properly supervise the students. He only told them what to. He should have reviewed the information that the students prepared and ensured that Generally Accepted Auditing Standards were followed. |…

    • 547 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Zzzbest

    • 2259 Words
    • 10 Pages

    A. As the successor auditor, what was E&W supposed to do before they accepted ZZZZ Best as an audit client in regards to Greenspan? Summarize in enough detail AU 315.03-.06. In your answer give and support your opinion as to whether or not E&W violated these paragraphs and if you can prove it as a fact.…

    • 2259 Words
    • 10 Pages
    Good Essays
  • Better Essays

    3. The auditor and Smackey need to talk and come to an agreement about the “terms of the engagement” (Arens, etal., 2010) as it does not appear that has yet occurred…

    • 1820 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    case audit

    • 6092 Words
    • 25 Pages

    The Colorado State Board of Accountancy (Board) appeals from a decision by the court of appeals allowing the accounting firm of Zaveral Boosalis Raisch (ZBR) to use the accountant-client privilege, see § 13-90-107(1)(f)(I), 5 C.R.S. (1997), to refuse compliance, absent the client's consent, with a subpoena issued by the Board. The Denver District Court interpreted exercise of the Board's subpoena power, see § 12-2-126(1)(a), 4 C.R.S. (1997), as an exception to the accountant-client privilege. In the absence of express legislative language creating an exception, the court of appeals declined to imply one. See Colorado State Bd. of Accountancy v. Zaveral Boosalis Raisch, 931 P.2d 498, 500 (Colo. App. 1996).(1) We agree and affirm.…

    • 6092 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    You Decide Week 5

    • 1238 Words
    • 5 Pages

    Discuss the 4 stages of the audit and the major activities performed by the auditor in each phase. Give an example of how each of these specifically applies to the Smackey Dog Food, Inc audit. For instance, examine the apparent internal control weaknesses and possible negative outcome of each.…

    • 1238 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Lincoln Case

    • 273 Words
    • 1 Page

    7.) I do not believe the relationship was proper you are required to be independent. Atchinson should not interface with Arthur Young’s auditors. The reason behind it is he would become no longer independent and compromise the audit. He could affect the decision in a certain way and the auditor would not be able to do their job properly.…

    • 273 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    d. the participants to be involved in the conduct of the audit and what their involvement would require (their role)…

    • 4604 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    A. As the successor auditor, what was E&W suppose to do before they accepted ZZZZ Best as an audit client in regards to Greenspan? Summarize in enough detail Au 315.03-.06. In your answer give and support your opinion as to whether or not E&W violated these paragraphs and if you can prove it as a fact.…

    • 815 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Auditing Paper

    • 1952 Words
    • 8 Pages

    Exemplification and the AICPA Code of Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions. Journal of Business Ethics, (71), 39-71. Retrieved from http://www.springer.com/…

    • 1952 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Audit Case

    • 24006 Words
    • 97 Pages

    . . . . . . . . . . . . . . . . . . . . . . . . . .…

    • 24006 Words
    • 97 Pages
    Powerful Essays
  • Good Essays

    Audit Case

    • 861 Words
    • 2 Pages

    The audit case I chose was case #1, Tommy O’Connell- Audit Senior. O’Connell is a newly appointed senior auditor for a big 5 firm, and he was given the tough audit engagement for the Altamesa Manufacturing Company. Tommy figured this engagement would help him get in good with the partner that was in charge of the audit, Jack Morrison. The only problem was he was assigned Carl, who is a fresh-faced staff accountant who has been working at the company for less than three months. Rumors are that Carl works extremely fast and finishes his tasks way under the budgeted time, and that gives Tommy the idea that Carl is cutting corners when it comes to his audit work, and it might get them in trouble in the long run.…

    • 861 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Auditing paper

    • 3045 Words
    • 8 Pages

    “Accounting did not cause the recent corporate scandals, unreliable financial statements were the results of management decisions, fraudulent or otherwise”. (Lin & Wu, 2006, para. 5) Waste Management, HealthSouth, Enron, Satyam and Madoff are just a few names that come to my mind when I think of fraudulent accounting. Disguised loans, inflated income, improper accounting and misstated earnings, different words all describing the same thing, FRAUD. Fraud affects the company, the consumers and it puts the entire economy at risk. According to the Huffington Post the top scandals of all time produced losses due to fraud totaling over one hundred and sixty nine BILLION dollars. ("The biggest accounting," 2010)…

    • 3045 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    - Arens, Elder, Beasley, Splettstoesser-Hogeterp. (2011). Auditing – The Art and Science of Assurance Engagements, Canadian 11th edition. Pearson Canada Inc.…

    • 3171 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Audit procedures

    • 5438 Words
    • 19 Pages

    4. International Standards on Audit, ISA 210. (15th December 2009). Agreeing the terms of audit engagements. Page 9-21…

    • 5438 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    4. What are the measures that accounting firms can take to reduce risk that personal relationships between client personnel and members of an audit engagement team will adversely affect the quality of an audit?…

    • 3513 Words
    • 11 Pages
    Powerful Essays