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Issues surrounding the collapse of lehman brothers

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Research Question

Auditor's Report

The new auditing standard ASA701 Communicating Key Audit Matters in the Independent Auditor's Report is developed in the wake of the global financial crisis, in particular the collapse of Lehman Brothers. This development is in response to calls from shareholders to know more about the companies they invest in. You are required to research the auditing issues surrounding the collapse of Lehman Brothers. Further you are required to relate the issues that led to the development of the new auditing standard ASA701 Communicating Key Audit Matters in the Independent Auditor's Report. As a result of your research, provide the key audit matters which would be required to be disclosed in the audit report to the members of Lehman Brothers if the new auditing standard ASA701 (ISA 701) had applied in the period leading up to the collapse of Lehman Brothers.

Required

Using the reference materials available on the internet, research the topic and discuss the auditing issues surrounding the collapse of Lehman Brothers. Explain how this was not forewarned in the auditor's report which gave an unqualified opinion before its collapse. Explain how the new auditing standard ISA 701 Communicating Key Audit Matters in the Independent Auditor's Report may provide additional information about the impending collapse of Lehman Brothers, explaining clearly what these matters are. Also, state clearly what the auditor of Lehman Brothers would have disclosed in "Key Audit Matters" if ASA 701 was applicable then as well explain how this would be an improvement in auditing practice.

The report should include title page, executive summary, table of contents, appropriate headings and sub headings, recommendations, reference list (Harvard-Anglia style), attachments if relevant, single spaced, font Times New Roman 12pt.

Verified Expert

There are basic facts pertaining to year prior to 2010. Since the incident took place in 2008, it is very necessary to put up brief data so that a background can be set up for explaining in the whole paper. Hope this would suffice your purpose.

Reference no: EM131492809

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Reviews

inf1492809

6/3/2017 5:43:27 AM

The part which discusses on had the standard been applicable earlier what would have been it's impact is the conclusion. We concluded how Lehman debacle could have been identified. This is the conclusion. I have also given heading in attached file.

inf1492809

6/3/2017 5:43:05 AM

There are basic facts pertaining to year prior to 2010. Since the incident took place in 2008, it is very necessary to put up brief data so that a background can be set up for explaining in the whole paper. Hope this would suffice your purpose. i will tell u later after confirm with teacher then u can change it or no because my teacher say dont use anytype of infromation before 2009 that so why i say u if u can change it then it good. We have used data (numerical and substantive) after the period of 2009. Could you please elaborate on your query. As see in your friends solution he has used more references of text books which are issued after 2009, Also note the qualitative data which is used in this paper is for the period after 2009. It discusses how standards were amended after 2009 and how it would have impacted if it was amended before. So,could you please confirm what else is client wanting? I no need information of 2004 or 2003 but I need information of after 2010 Hi mate my friend use this data of 2014 ,2015,2016 23390818_1IMG 5321.JPG Thanks now everything is clear, please provide the solution asap, thanks a lot

len1492809

5/12/2017 1:38:13 AM

The report should include title page, executive summary, table of contents, appropriate headings and sub headings, recommendations, reference list (Harvard-Anglia style), attachments if relevant, single spaced, font Times New Roman 12pt. The marking guide will be as follows: 30% Analysis 30% Research – extent and application 30% Recommendations/conclusions 10% Presentation Total mark will be scaled to a mark out of 30 subject marks.

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