Case #1 Lakeside

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Case #1
[Type the document subtitle]

2/16/2014

Review Comments

Summary

Discussion Questions – 2 Hours

Exercise – 1.5 Hours

Table of Contents

Title Page……………………………………………………………..…………………………..

Review Comments…….……………………………………………………………………........1

Team Summary …………………………………………………………………………………..2

Table of Contents……………………………………………………………………………..….3

Discussion Questions……………………………………………………………………………...4

Question #1………………………………………………………………………………..4

Question #2………………………………………………………………………………..4

Question #3………………………………………………………………………………..4
Question #4………………………………………………………………………………..4
Question #5………………………………………………………………………………..4

Question
…show more content…
Second, Lakeside may feel the auditor isn’t necessarily on their side, even though as an auditor we need to stay neutral and that our obligation is to the stakeholder in the company.

Case 1 - Exercise 1
Abernethy and Chapman
Fraud Risk Factors
Client: Benjamin M. Rogers
Prepared by:
Date: 2/16/2014

List the fraud risk factors that the CPA firm might encounter if they accept this audit engagement. Be sure to include a discussion of all items that will probably require special attention during the audit. For each of these fraud risk factors, indicate how the auditor should follow up on each potential problem if the engagement is accepted. Use the following formal
Fraud Risk Factors
Auditor Follow Up
Material misstatement that existed on reporting historical cost on the new building.
Approach this subject right away and speaking with the previous auditors for what they experienced on this issue.
Rogers Corporation to construct the latest facility for Lakeside
This issue needs more information and legal terms on whether or not this is allowable.
The audit option that was rendered on the books for year ending in 2011
With Rogers refusing to write down the reported value of the property can cause some confliction between any auditor and owner. Talking to Rogers and the previous auditor is the best way to get to the bottom of this issue and see who is at fault.
Not as much of a
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