Case Study 3 a) What events or condition above may cause substantial doubt about the entity’s ability to continue as a going concern? Events or condition that may cause substantial doubt about the entity’s ability to continue as a going concern are the first one‚ because of the high competition in the industry‚ it has affected the sales of the Fast Go. The effect of vigorous competition in the markets has makes it difficult for Fast Go to attract and retain customers and to grow their customer
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show that the loss suffered by the claimant was reasonably foreseeable. In the case of Hedly Byrne and Co vs Hedler and Partners Ltd‚ where there was a special relationship between parties‚ there could be a duty of care for financial loss caused by a negligent misstatement. However‚ there was a valid disclaimer as the advice given by Heller was headed without responsibility and the defendant was not liable. In this case‚ Aiman & Co were not liable since there is no special relationship between parties
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objectives of writing this ethical audit report on Toyota are: I. To identify the ethical dilemmas facing by the company. II. To discuss the evaluation of the relative importance of the dilemmas and how Toyota is currently dealing them. III. Also to explain Toyota ethical best practices and values. IV. And lastly‚ to give recommendations that will enable Toyota to give appropriate answers to its critics. 2.0 ETHICAL DILEMMAS FACING TOYOTA An ethical dilemma is a situation where
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Professional and ethical issues c a S eS inc lu de d in t hiS Se ction 3 . . . . . . . . . . . . . . . . 3.1 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures 59 63 65 71 79 3.2 Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should He Pocket the Cash? Recognizing It’s a Fraud and Evaluating What to Do . . . . . . 3.3 The Anonymous Caller 3.4 WorldCom The Story of a Whistleblower . . . . . . . . . . . . . . . . . . . . . . . .
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a going concern audit issue. Participants in Experiment One involve 92 auditor from multiple offices of three Big 4 audit firm which is 48 seniors‚ 29 managers and 15 senior managers. The range of audit experience are 3 to 13 years with a mean experience of 5.4 years. Overall‚ 80 percent of participants reported being involved in audit engagements where substantial doubt existed about the client’s going concern aassumption. While two-thirds of participants shown at least one audit engagement where
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time to see if they are reasonable. Most auditors should have detected this kind of material misstatement in company’s financial results‚ because this defalcation is caused by a personal factor. c) We should forecast its audit procedure in order to eliminate the risks in audit progress. Thus‚ control procedure would have been effective in preventing or detecting the defalcation could have been a separation of duties. 2. a) Since the purchasing agent usually set up wrong purchase orders to factious
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Ethical Case Study Ethical decision making in healthcare are guidelines used to assist nurses in carrying out their responsibilities in a manner that is consistent with the ethical standards regarded in the profession. The standards are in place to hold the professionals accountable and maintain the quality of nursing care in an ethical manner (code of ethics for nurses). There are situations that arise during a nurses daily task that may require him/her to make independent decisions that
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Abstract: The audit function creates several important relationships among the various parties. One of the most significant and potentially problematic relationships is between the audit firm and the audit client. The decision by the audit firm to accept or retain a client is crucial because of the potential risk of being associated with certain clients. Engagement risk is considered to be composed of three components: client’s business risk‚ audit risk‚ and auditor’s business risk. Client’s
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Recovery Audit Contract Prior Government Accountability Office work has helped identify problems with Centers for Medicare and Medicaid Service’s actions to address improper payment vulnerabilities‚ and Department of Health and Human Service states that “prior Office of Inspector General(OIG) work identified problems with CMS’s inability to address referrals of potential fraud” (URL 2011). Hence‚ Congress created the Recovery Audit Contractor Program that was designed specifically to protect Medicare
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Audit Case- Tommy O’Connell 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
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