Report on Auditing Issues of West Point Group of Industries in Australia

This project presents an audit risk assessment on Telstra Corporation Limited using advanced accounting techniques

This paper will address the Securities and Exchange Commission’s rationale for charging Cardillo executives with the violations outlined in the case study and identify who was in violation or compliance with the AICPA’s Code of Professional Conduct and the reasons they were or were not complying. This paper will also analyze the actions taken by Cardillo’s outside auditors, evaluate the level of efficiency of the audit risk management, determine whether or not the five components of internal controls were being properly followed and argue for or against whether auditors have a responsibility to assess the judgment of the decisions made by Cardillo’s management.

Quality Objectives - The quality objectives define measurable goals relative to the company's quality management system. Requirements on the quality objectives are in ISO 9001:2008 section 5.4.1.

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.

AICPA Code of Professional Conduct principles prevents vises such as fraud that are experienced in accountancy field. Audit is the best measure of the effect of the fraud that are imposed to investors by accountants. The relationship of the investors and account holders are supposed to be affirmed through auditing to ensure accounting principles are upheld(Weirich, Pearson, & Churyk, 2010). Improper loss of the funds through propagation of the accountant officer should be treated as fraud and criminal activity that should lead to prosecution. Therefore, the paper seeks to relate two fraud cases that have been audited and presenting AICPA Code of

This paper explores the ZZZZ Best Company which was begun by a 16 year old individual who was able to pull the wool over the eyes of many customers, investors and auditors. This paper will define the difference between review and audit when it comes to financial reports, comments on the procedures provided with regard to the management assertion of occurrence, verification of payments for jobs and how they can lead auditors to improper conclusion, the purpose of predecessor-successor auditor communications, as well as whom needs to initiate the communication and information that needs to be obtained. The paper also addresses the limitations of the confidentiality agreement and how and when

The breakdown of Dick Smith Electronics has aroused wide concerns in Australia since it brought losses to the related parties at different levels. This essay focuses on analyzing how the company could have possibly avoided the failure if it had applied the third edition of ASX Corporate Governance Principles more effectively.

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.

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

This essay explores the corporate collapse of Harris-Scarfe on April 3 2001, which before their collapse was Australia’s third largest retail group (Buchanan 2004, p. 55). It will explore the collapse in the context of the auditing framework. In particular, how the financial indiscretions were not discovered by the auditors, which were going on as early as six years prior to the collapse (Buchanan 2004, p. 62). To start with, we define what the auditing objective is in order to work out where it failed in this case. ASA 200.11/ISA 200.11 defines the auditing objective as one that needs to ascertain reasonable assurance that the financial report as a whole is free from misstatement, whether due to error or fraud. In doing so the auditor can give an opinion of whether the financial report was prepared in accordance with the financial reporting framework (Gay & Simnett 2012, p. 12).

This report analyses Virgin Australia (ASX code VAH) and identifies its potential business and audit risks that will need to be addressed in the 2014 audit. It is presented to the Virgin Australia Audit Committee as part of the 2014 Audit planning process.

The Australian Security and Investments Commission (ASIC), is an independent government body that acts as Australia’s corporate regulator. The organisation is responsible for regulating Australian companies, financial markets, financial services organisations, and professionals working in investment, superannuation, insurance, deposit taking, and credit . ASIC administers a number of laws, most notably the Australian Securities and Investments Commission Act and the Corporations Act , from which it derives the majority of its powers. According to the ASIC Act the organisation should strive to improve the performance of the financial system, promote the confident participation of investors and consumers within that system, and administers the laws that authorise its functions and powers effectively and with the least possible procedural requirements . However ASIC achieves only partial success in fulfilling its organisational goals, and thus only fulfils its role in society to a limited extent. For example, ASIC was slow and unproductive in handling allegations of fraud and incompetence amongst financial planning advisers working for the Commonwealth (CBA). Although ASIC was able to identify negligent parties, the processes of ASIC’s investigation were long-drawn-out and enforcement action did not adequately account for the scope of misconduct suggested by their investigation. Situations such as this indicate ASIC’s inability to work effectively as a corporate regulator.

BlueScope Steel is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets. The company's

The Prefab Sprout Company is a construction company which develops and constructs modular home enclosures in South Florida. Though being listed on the New York Stock Exchange (NYSE), it is still a family-run business with about 40% of the shares resting with the Warner family. This working paper provides a thorough analysis of Prefab’s internal structure and its external business relations from an auditor’s viewpoint. In particular, the potential business and audit risks that could possibly evolve from an audit engagement are central to this study.

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.