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Livent Inc. Case Study Essay

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Livent, Inc. is a company that is very involved in the entertainment business, mainly in live theatrical productions. When dealing with a company in the entertainment industry, there are many risks that can be involved in auditing situations. A big risk that can be common is working with the higher officers of the company who are not strongly educated in the financial field. They are only familiar with the entertainment part of it and do not pay attention to a lot of the finances. It is common for the board and higher management in the entertainment field to only worry about the amount of talent provided in their product and the amount of people that are in the seats. They do not know and commonly do not want to know how much it costs…show more content…
The audit partner is there to see that the company is reporting numbers correctly, legally, and ethically. They are similar because they both oversea the finances of a company. The auditor just makes sure that the CFO is approving the financial activities that he should approve. Personally, I would rather be the CFO of a company. It is a lot of responsibility but as long as you keep your company profitable while following rules and laws then you shouldn’t be in trouble. The CFO is also much more important because you oversea many people and you have to make sure that they are following rules as well. An auditor is important but if a company is doing everything legal and their numbers are correct, how important are they? Corporate executives may consider their auditors to be evil because an auditor may tell them a lot of bad news, from their numbers is off, you are doing stuff illegally, and much more negatives. An auditor is usually the one to find what the company is doing wrong whether they know it or don’t know it. I don’t feel that auditors are the ones who can change the perspective of how corporate executives feel about them. The only way this will change is if companies start reporting correctly and legally. So, it is up the company to change their own mind because the ones who feel the auditors are evil are usually the ones doing the evil acts. Another accounting firm is retained when an auditor-client conflict arises during an
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