Explain the audit report that the cpa firm issued

Reference no: EM131138522

Assignment: Auditors and Regulatory Oversight

The Securities and Exchange Commission (SEC) regulates public companies. The SEC has foundthat some of these companieshave violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company.

Use the Internet or Strayer Library to research a recent accounting scandal within the last five years where the SEC accused public companies of accounting irregularities.

Write a three to four page paper in which you:

1. Analyze the audit report that the CPA firm issued. Ascertainthe legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.

2. Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.

3. Compare the responsibility of both management and the auditor for financial reporting, and giveyour opinion as to which party should have the greater burden. Defend your position.

4. Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response.

5. Use at least two quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Be typed, doublespaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Analyze the required generally accepted auditing standards, professional ethics, and legal liability of the auditor.
• Assess how the Sarbanes-Oxley Act has affected auditing.
• Evaluate an audit report.
• Evaluate objectives for conducting audits, and compare management's and auditors' responsibilities.
• Use technology and information resources to research issues in auditing.
• Write clearly and concisely about auditing using proper writing mechanics.

Reference no: EM131138522

Questions Cloud

Describe the history and development of forensic science : Describe the history and development of forensic science. Identify the many roles of the forensic science expert as is they relate to the forensic science disciplines. Explain the capabilities of forensic science.

What are the security levels in state and federal prisons : What is an example of a state prison system? How might you explain the growth of state prisons? How can U.S. corrections professionals solve the problem of exponential growth in state prison systems?

In which year would you have the highest real income : In which year would you have the highest real income? - 2. In which year would you have the better standard of living?

Compute the solidification time of 0.5inch by 8inch by 8inch : Then compute the solidification time of a 0.5inch by 8inch by 8inch casting poured under the same conditions?

Explain the audit report that the cpa firm issued : Analyze the audit report that the CPA firm issued. Ascertainthe legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.

Why are these arguments not as valid as your own : What are some arguments that oppose your views? Why are these arguments not as valid as your own? Provide evidence to support your claims.

The debit credit analysis illustrated on pages 61 to 66 : T. J. Carlin has the following transactions during August of the current year. Indicate(a) The effect on the accounting equation and (b) The debit-credit analysis illustrated on pages 61–66 of the text.

Determine the average impulsive force exerted on the player : A baseball player catching a ball can soften the impact by pulling his hand back. Assuming that a 5-oz ball reaches his glove at 96 mi/h and that the player pulls his hand back during the impact at an average speed of 25 ft/s over a distance of 8 ..

Principles of effective leadership in virtual teams : You have been asked by executive leaders in your organization to use your experience and research to develop a training program for a group of newly-promoted middle-managers. This is a group of experienced and successful front-line supervisors who ha..

User Account

All Pages