Case Study Audit

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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 base and revenue. Furthermore, many competitors of Fast Go’s are larger and have greater financial resources, less average, and their coverage are more extensive.
Furthermore, Fast Go also suffer high turnover of staff of the company. It is
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f) What types of audit report will you issue for Fast Go.

Types of audit report that will be issue for Fast Go is unmodified audit report which have to prepare by the management on the going basis after considering all the mitigating factors that arise.

Case Study 4

i) Explain the factors that contribute to the success of Mazlan’s fraudulent scheme. You may explain from the perspective of fraud diamond.

Based on the fraud diamond, the factors that contribute to the success of Mazlan’s fraudulent scheme are: a) An incentive – It is an incentive for Mazlan to commit fraud when he need to bear the limit credit card and he was on the verge of declaring bankruptcy. Because of this he decided to “borrow” money from IOPSB. b) Rationalization – Mazlan think what he did is rational because he will try to keep track of the money so he could pay it back later to the company. c) Opportunity- Mazlan has an opportunity to commit fraud when Zairi, the Chief Executive Officer did not play his duty as an officer. He just signed whatever cheques without check the payment is made for whom. d) Capability- Mazlan was also capable to commit fraud because he is Account Executive in that company. So that, it easier for Mazlan to “borrow” the money from IOPSB.

ii) Based on what Mazlan told you about his fraudulent scheme, describe
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