Case Analysis : Zzzz Best Company, Inc.

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1. Read Case 1.9, "ZZZZ Best Company, Inc." in your text. Answer questions #1, 2, and 4 found at the end of the case. Question # 1 A review is like an audit yet is less in extension and just gives restricted affirmation with respect to the financial statements. This varies with an audit that gives sensible affirmation that no material mistakes or illicit acts are detected. The goal of an audit is to give a sensible freedom of expressed opinion the money related proclamations taken all in all. A review does not give a premise to the express of opinion in light of the fact that a review does not include acquiring an internal control structure or evaluate control risks, tests of bookkeeping records and of reactions to request by getting…show more content…
Tom Padgett made the affirmations and management of the company gave the papers, yet every source was included in the fraud. Question # 4 The reason for the predecessor-successor auditor correspondence is to advise the successor auditor of the way of the business and particular ascribes of the customer to figure out whether the successor auditor needs to go up against them as a customer. It is the obligation of the successor auditor, with the consent of the client, to start correspondence with the predecessor auditor. The successor auditor needs to gather data on if there are any regions to give careful consideration to that are more inclined to misreports, the proficiency/adequacy of internal controls and if there is anything particular to run over with the administration or management of the company, how is the relationship with administration/ management of the company, if in case that they are consistent, and possibly most imperative, the main reason behind the switch. 2. Read and summarize the article, "Client Engagement Risks and the Auditor Search Period," by Khalil, Cohen, and Schwartz in Accounting Horizons, Volume 25, Number 4 (2011), pp. 685 - 702. Summary The article has been written by Khalil, Cohen, and Schwartz. The main purpose of this paper is to make

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