Auditor Crazy Eddie

Auditor Crazy Eddie Question: What specific mistakes (apart from failure to notice â€Å"red flags†) did the auditor make? For each mistake, describe what the auditor should have done. If you were the Managing Partner for the CPA firm and had full knowledge of all the facts and events in this case, what changes in policy or procedures would you implement to make sure this audit failure does not occur in the future? The Crazy Eddie’s financial statements had many fraudulent over and understatements done in many ways that the auditors should have caught. They created fictitious revenues by a number of means. They prepared phony invoices showing sales which overstated their revenues to show the company was growing faster than they actually were. Their vendors collaborated in the fraud by lying to the auditors when the auditors attempted to confirm some of these receivables. The auditors were not diligent when they verified these invoices. They should have probed further into the vendors to v erify that these sales occurred. They also should have understood the relationship between Cray Eddie’s and their vendors to understand if there were motives for fraud. They overstated their assets by overvaluing inventory. They would borrow merchandise from suppliers to inflate the ending inventory. The suppliers would ship the merchandise to the Crazy Eddie’s stores and hold the billing until after the end of the accounting period. The employees of Crazy Eddie went to great extents to deceive the auditors. They would move inventory to the stores or warehouses that were being audited to conceal the shortages. The auditors should have caught that the merchandise was not billed and understood what accounts they charged in the books when the merchandise was received. Another means of overstating the inventory was they shipped inventory from one store to another store so it could be double counted. This should have been caught by the auditors by having the entire inventor y verified in parallel. The employees included in their inventory consigned merchandise and goods being returned to suppliers. This could have been found by understanding the details of Crazy Eddie’s inventory. The auditor should have identified the consigned merchandise and goods being return to separate it from the normal inventory. Crazy Eddie used the accounting periods to overstate assets and income. They held off closing the books past the end of the accounting period to overstated assets and income by boosting sales. The other means used was to reduce liabilities and expenses by not recording them until the next period. The auditors should have verified books at the end of the accounting periods to make sure that all transactions were recorded. The auditors needed to verify the transactions around the end of the period to verify their timing accuracy. Another category of fraudulent activities was when they were completing their financial statements. They didn’t adequately disclose facts in the financial statements according to GAAP. The footnote during one period stated that certain income was recognized when received and the following period disclosed that income was recognized when earned. The auditors should have added an explanatory paragraph or a modification of wording for lack of consistent application of GAAP.

International Relations Course Informal Personal Intro Essay

International Relations Course Informal Personal Intro - Essay Example Therefore, the values gathered from this cause can be used in my life to foster peace in our country through interrelations, despite of their race, creed or nationality. In this case, by understanding these values, I will be able to interact with people of different background; despite the differences caused by diversity in our daily lives, and I can also avoid conflicts and resolve them whenever they arise. I have high expectations of acquiring a chance for developing diverse virtuals that will facilitate the process of becoming someone who can make a positive contribution in the world. Moreover, through this course I expect to gather skills for interrelation that will enable forming networks of mutual responsibility and a platform for sharing potential with other people around the world. I also expect to meet a highly dedicated instructor in this course, who can offer a chance to share my commitment as a student throughout the course. Moreover, I hope the course will facilitate the process of building my capabilities and character of virtuous and responsible individual, who can contribute in making the world a better place for others and me. I also expect the instructor to be honest, fair, to have critical rigor and to be a source of inspiration to the students. Furthermore, I hope that we will utilize the time offered during this course to learn and for the fair purpose that is benef icial to all students. Â   Studying this course will enable gathering of knowledge and insights that can facilitate building of intercultural competencies, and sustainable disposition. Therefore, this will enable others and me to relate and build a form of interdependence, whereby facilitating globalization. The course will also make a vital contribution in development of new perception towards political reality. Therefore, this will enable building of critical and reflexive knowledge, practical values, relations that will facilitate good coexistence. Knowledge

Market Essay Example | Topics and Well Written Essays - 1250 words

Market - Essay Example Not to get out of the topic, Peron’s main policies in this period were based on his being a close observer of the axis power’s fascist leaders, and this might have been the reason he acquired the Napoleonic view of being a man of destiny. When it occurred to him that the axis powers were defeated, to him this revealed the foolishness of the foreign policy of the Argentine and this established in him a conviction that he had a chance of avoiding the clear mistakes of Franco, Mussolini and Hitler in order to dive argentine to a great height. This paper explores a biography that describes my family background, economic background and current situation, and position in the U.S. political power structure. As often known, any dictator needs a bodyguard, and for this case when eyeing the office of the president, he assembled a band of followers from the row deist urban poor of the Argentina. In order to keep models of the Brown and black shirts, he went ahead labeling his foll owers No shirts with a reason that they lacked the white gentleman’s shirt. This clearly indicated that he was getting a way to middle ground between the communist and the fascist. Certainly, Peron was an ultra-nationalist who did not fear playing upon the class s rivalry. He took advantage of the powers he possessed while a vice-president to attach himself to the working class. In the event, some military officers sensed that Peron was up to something and went ahead arresting him. In response to this, Peron raised worker’s wages and gave them a paid holiday. Certainly, it was a shrewd investment because it is a chance that her mistress used her beauty in rallying his supporters with giant mobs gathering chanting the slogan of releasing him. This was an advantage for him since though this, he was released, as well as elected president in 1946 elections forming the peronista party. The steps he took after assuming power is what has made him be remembered for transformin g the leadership of Argentina. He first went ahead marrying his mistress Eva Peron with opposition being silenced by the bands of No shirts. He along with his team set up and established a full-fledged welfare state alongside granting women voting rights using Eva as the face of the crusades. Noting that the economic policies of the new regime were as bizarre as the Cultural Revolution of Mao, he went to introduce various changes that cut across social, economic, and political. The prominent economic changes entailed freeing Argentina from the foreign dominance through investing heavily in industrialization. This he did by funding the first ever-scientific analysis of Argentina’s Andes Mountains in which he discovered coal and precious metals. With a view to fund the exploration and the social program, he centralized control of imports and exports. In a period of ten years, the true rich Argentina’s resources brought about a stunning social economic growth that actuall y defied the attempts of experts to attempt explaining it under Juan Peron’s erratic policies. On a social ground, the legacy of Nepoleon left a great impression in Peron, in which case the two leaders viewed their people as those who cared little about their liberty, but about the government goal to provide equality. He was called El Leader following his character that established him as being a good fascist and as a good socialist he provided higher wages,