Just for Feet Audit Case 5-7

The Lakeside Company: Auditing Cases, 12th edition, has been updated in light of the accounting

Integrity might cause problems in this case as the main persons in this organization are family members and there are also family members with high functions in the bank and JRW Realty with which Prefab has close business relations. Moreover, the members of the audit and compensation committee are not all independent of the firm and therefore, the likelihood of fraud or material misstatements in the financial statements is quite high. The profitability of the engagement to the auditor should be considered as well. Due to the extensive investigation the auditor has to do, especially due to the relationships between the people at the top management and the independence of the audit and compensation committee, the profitability might be a concern. Furthermore, from the analysis of the business risks of accepting the audit it can be concluded that there are several severe problem areas in which fraud or material misstatements in the financial statements can take place. At the Prefab Sprout Company the risk of fraud or material misstatements is considered to be very high and therefore, the engagement should not be accepted.

Introduction A clinical audit is an approach used to determine if healthcare is administered in the most effective and appropriate manner whilst meeting internationally recognized standards. The National Institute for Health and Care Excellence (NICE)(1) recently updated published standards of care for management of Acute Upper Gastrointestinal bleed (UGIB). The medical records of eighty-seven patients who presented with an upper gastrointestinal bleed over a three month period from December 2013 to February 2014 to the Port of Spain General Hospital (POSGH) were audited. Results showed that recommendations in the NICE guidelines were followed accordingly. Acute upper gastrointestinal bleed (UGIB) can be defined as bleeding from a source (duodenum,

As indicated by PCAOB, the written representation cannot be a substitute for substantive procedures. Thus, auditors did not perform adequate procedures to test the management’s estimates. What’s more, inquires were heavily relied on the management’s integrity. Auditors ignored the professional skepticism. Finally, the 30 years and 15 years useful lives, which were adopted previously by Little Drummer, were not appropriately audited. Since the engagement team did not contact the predecessor auditors, the team did not get any audit documents from predecessor auditors regarding the assumptions of 30 years and 15 years. There was no evidence to show the reasonableness of these two assumptions.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate (Louwers & Reynolds, 2007). We believe that the audit evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinions.

Since the auditors failed to do their job properly, they should be held liable for failing to plan and perform the audit to discover material fraud. The red flags the auditors should have picked up when conducting the audit included rapid growth, bank transfers and other accounts, the avoidance of confirming the insurance restoration jobs, consistency of all the invoices, extravagant life style, cash flow problems, and problems meeting loan payments. Also the auditors never looked at construction contracts, issues, and whether ZZZZ Best had the necessary permits to do the work. This shows the auditors failed to exercise professional skepticism.

It is not possible for the auditor to be 100% certain that he/she has obtained all evidence regarding all significant related party transactions, especially if management is trying to conceal something. However, the

This report applies to a specific clinical standard audit which was conducted across two surgical wards at St John of God Murdoch Hospital. The 10 clinical standards were derived from the health commission of Australia which can be used by any health professionals and multidisciplinary team within the clinical setting. The main ideas for this nationally recognised clinical framework is to ensure patient safety and to improve the quality of individual health care. In spite of the ten nationally accredited Clinical Standards this audits main focus is standard number 6 (Clinical handover) from the NSQHS (National Safety and Quality Health Services). However, to achieve a successful clinical handover clinical standard one and two must be incorporated

The most common problem with bound feet was infection. Regardless of the amount of care taken in frequently trimming the toenails, they would often in-grow, becoming infected and causing wounds to the toes. Sometimes for this reason the girl's toenails would be peeled back and detached altogether. Due to the bandages being so tight that they nearly cut the circulation off in the feet was defective, therefore if the girl had any injuries in her lifetime in her feet it was unlikely for them to ever heal, and even get worse over time.

6.) The Wilkerson Company original case is not effective and accurate without including an ABC analysis. ABC allowed us to assess the business performance of each of its businesses including: Valves, Pumps and Flow Controllers. This enabled us to realize that the Flow Controllers business is not profitable with a Gross Margin of -11.31%. I recommend specifically solving the problem of pre-tax margin going from 10% to less than 3%. The strategic decisions that need to be made are improving the unprofitable Flow Controllers business unit, while simultaneously increasing the sales of the more profitable Valves and Pumps business units. I would capitalize on the highest margin business of the Valves. Specifically, I would develop marketing strategies on how to grow market share in this business. I would assess what we are doing in this business and I would reapply it to our other businesses. This would include evaluating and eliminating costs in the other business units,

The analyzed case study refers to the Hollate Manufacturing company, which belonged to the home construction industry since 1950s. The company operated in the United States and Canada with 14 divisions spread throughout the countries. Hollate’s performance was significantly better than its peers, resulting in $1 billion sales. The company maintained its growth over the years due to growth-through-acquisition strategy. However, the home construction industry suffered downturn in recent years. Hollate manufacturing faced a problem with audit as far as with personnel. Four suggestions are given along with answer to the question how to avoid alike situations.

Riggers Inc (“Riggers, “client, or “Company”) is audited by Stone LLC CPA firm (“Stone” or “auditor”). The Compa” ” ny builds and owns offshore drilling rigs. Riggers is a US-based corporation that recently expanded its operations into Brazil (the only foreign-based operations for Riggers). As a result of this expansion, the client has encountered two complex issues related to accounting for income taxes. During the 2012 year-end audit, the auditors must use professional judgment with regard to these two income tax accounting issues. The first issue relates to

Just For Feet, Inc. operates retail stores in the brand name athletic and outdoor footwear and apparel market. Just for Feet was found in 1977 with the opening of a small mall based store and opened its first super store in 1988. Because of their success and high sales volume generates by the large store Company has concentrate primarily on develop and refining its superstore concept. As of January 1999, they operate 120 superstores, which 23 superstores opened in fiscal 1997 and 26 superstores opened in fiscal 1998. Just for Feet plans to open 25 stores during fiscal year 1999 and 2000. In 1997, Just for Feet acquired Athletic Attic and Imperial Sports, which are now operated as the specialty store division of the

The chief executive of the company was closely working with the vendors whose confirmations were vital in the auditing work and hence they could have submitted false confirmations. The auditing firm established a national risk management program for its clients and so national reviews were done to identify the high risk items in the financial statement. The vendor allowances were particularly high but they were not documented. As such, the auditors were supposed to demand for the documentations and compare them with the real figures. It is however noted that most of the documentations received were non-standard and this could have led to a different audit report given that vendor allowances were earlier identified as a high risk area. Inventory management was found to be poor especially in the allowances for inventory reserves. The audit firm was therefore obliged to carry out a thorough evaluation of the inventory reserves and determine whether it was reasonable. The valuation was also supposed to include all classes of inventory but for the case of the company, the evaluation excluded instances where no sales had been made. Hence, this evaluation could not accurately represent the position of the inventory reserve in the company. (Waters,2003)

This article initiates with the introduction on what is audit planning. It basically addresses the audit plan strategy of K & S Corporation limited’s Financial Statements. Being an external auditor of the company, key factors to be considered in auditing the financials of the subject company have been discussed in the article. The most significant accounts at risk being materially misstated have been critically examined citing the possible risks associated with such accounts. Last but not the least, the article concludes with recommendations with respect to audit assessment plan of the company. Hence, this article seeks to act as a ready reckoner guide for an audit manager in audit planning of K & S Corporation Limited.