Auditing case study, Auditing

Fortex Limited, the meat processing firm, was formed in 1985 from three smaller companies. In 1993, however, after a few years of spectacular growth, the company collapsed.

a)  Summarise the history of theFortex Limited case.

b)  With respect to the Fortex Limited case, take and defend a position as to whether each of the following situations represents deficient performance by the auditor, deficient standards or unreasonable expectations on the part of interested parties. In you discussion, refer to any applicable legislation, common law or appropriate source.

i)   Loan receipts from an overseas financier were recorded as sales.

ii)  Inventory of unprocessed and processed lamb products were grossly overvalued.

iii)  There was no mention of going concern problems in the auditor's report.

iv)  Fortex was expanding too fast for its market and this information was not disclosed.

Posted Date: 2/20/2013 12:40:25 AM | Location : United States







Related Discussions:- Auditing case study, Assignment Help, Ask Question on Auditing case study, Get Answer, Expert's Help, Auditing case study Discussions

Write discussion on Auditing case study
Your posts are moderated
Related Questions
Bank - Cash and Bank Balances The major concern in this area is to establish the existence of the balances and more currently due to failures in some financial institutions in

Party Disclosures used by IAS 24 IAS 24 utilized the following related party disclosures that 1. Nature of relationships between subsidiaries and parents, even whethe

You have been appointed as an Internal Auditor in an organisation . As part of your duties, you are required to provide training to the staff in the internal audit division. Your f

Sundry Debtors and Loans Sundry debtors and loans are not generally material assets of companies another than those companies whose business is to create loans.  We shall cons

Simple Trust - This type of TRUST is essential to distribute all its income currently, whether or not the TRUSTEE actually does so and it has no provision in trust instrument for c

Key Audit Areas Key audit areas in detail (a) Ascertainment of creditors and debtors:   Insurance companies do not keep their personal ledgers in such a way as to prod

Relevance of Audit Evidence The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial stat


Why is studying Auditing different from studying other accounting topics?

Q. What is ordinarily the first step in the formation of a corporation? a. Development of by-laws for the corporation b. Issuance of the corporate charter c. Application for incorp