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
list four assertions that relate to account balances


Documentation of Representations by Management The auditor would ordinarily involve in audit working papers evidence of management's representations in form of a summary of or

Co-operative Societies An audit in this case is carried out as a normal audit except you should note that the auditor is appointed by the Commissioner of Co-operatives and alth

Prepare a narrative describing the transaction cycle process for debt in a municipality.

Assertions about classes Assertions about classes of transactions and events for the period under audit : a) Occurrence -events and transactions which have been recorde

In planning the audit work of the Ministry, the audit staff member collected these details relating to the construction of an office complex. 1. In September 1994, the Ministry

RELEVANCE OF IAS / IFRS TO AUDITING The auditors should involve in their report that their view on whether the financial statements they report are true and fair view. It is comm

Disclosures about Inventories - IAS 2 IAS 2 specifies disclosures about inventories. In a large manufacturing company, no article in the balance sheet appears verification

Timing of Tests of Control - AUDITOR should perform tests of controls over a period of time which is adequate to determine whether, as of the date specified in management's report,