ZZZZ Best Company, Inc: An Analysis

6. This article was written before the accounting laws were changed because of problems encountered by ex-auditors working at the client, and having connections with the new auditors. This caused many problems exemplified by Enron and WorldCom. That is why it is no longer allowed to take a job with the client. I agree with the law at present, based on the fact that before the law was present, major fraud occurred that could’ve been prevented had hiring their old auditors been illegal and of course many

AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315, explain the following:

My company of choice is Best Buy the leading provider of technology products, service, and solution. The company is a growing business throughout the United States, Mexico, and Canada. Best buy was first founded in 1966 by Richard Schulze. The original name was Sound of Music, however in 1983 the name was changed to Best Buy. Best Buy has over 1,400 stores which can range from large format stores ton mobile stores. It is said they more than 70 percent of population lives within 15 minutes of a Best Buy store. More than 120,000 people are employees of this large technology company.

The engagement in this type of activities will provide the IAD with the responsibilities to fulfill certain degree of assurance from an independent and objective position. Although, the consulting activity could be the main focus for the IAD in this organization, the assurance portion could be a source of reliability and confidence for the management team, the board, and the employees in general regarding the work performed by the different departments. Another, recommendation will be to include in the charter the complete, unrestricted, and free access to any records and physical properties by the internal auditor while working in an engagement. This freedom will facilitate immensely the work performed by the internal auditors allowing them to have all the information required to accomplish their assurance and consulting objectives. Moreover, the IAD charter should include system to monitor the disposition of results communicated to management and a system to resolve risk conflicts between the chief audit executive and the senior management. The addition of these two crucial parts of the internal audit activity in the charter will facilitate the achievement of quick results and a more effective and efficient way to resolve significant issues that may arise in the

First of all, having a clear communicate with the predecessor auditor to discuss the details. Since this will involve the client confidential matter, obtaining a permission should take place first. By doing this, auditor can able to identify the auditing issues to have a better picture of the company working system.

The company chose to discuss is Best Buy. Best Buy was founded by Richard Schulze in 1966. It was originally called Sound of Music before it changed to Best Buy in 1983 (Best Buy, 2016). The company is a leading provider of technology products, services and solutions (Best Buy, 2016). Given that this company strives to keep up with trends in technology, they keep their mobile applications up-to-date as well.

Which party should initiate the communication: The initiative for communicating rests with the successor auditor. The communication may be either written or oral. Both the predecessor and successor auditors should hold in confidence information obtained from each other. This obligation applies whether or not the successor auditor accepts the engagement. The predecessor auditor should respond promptly and fully, on the basis of known facts, to the successor auditor's reasonable inquiries. However, should the predecessor auditor decide, due to unusual

This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works.

Integrity might cause problems in this case as the main persons in this organization are family members and there are also family members with high functions in the bank and JRW Realty with which Prefab has close business relations. Moreover, the members of the audit and compensation committee are not all independent of the firm and therefore, the likelihood of fraud or material misstatements in the financial statements is quite high. The profitability of the engagement to the auditor should be considered as well. Due to the extensive investigation the auditor has to do, especially due to the relationships between the people at the top management and the independence of the audit and compensation committee, the profitability might be a concern. Furthermore, from the analysis of the business risks of accepting the audit it can be concluded that there are several severe problem areas in which fraud or material misstatements in the financial statements can take place. At the Prefab Sprout Company the risk of fraud or material misstatements is considered to be very high and therefore, the engagement should not be accepted.

Various activities and steps are conducted when deciding and considering the acceptance of a new audit client including these eight. Firstly, financial statements and reports are acquired and reviewed. These reports include the company’s annual reports, management reports and income tax returns. Next step includes investigating and inquiring of third parties on the particular company. The opinions of third parties especially the external users such as bank, creditors, suppliers, tax authorities and even consumers are essential to know more about a company. Besides that, permission should be gained to communicate with the

This report asks the author of this paper to answer to several questions pertaining to the demise of One.Tel in 2001. The author if asked to explain the role of external auditors in the collapse and how the expectations of shareholders and stakeholders likely figured into that collapse and the auditor malfeasance that led to the same. The author is asked to give two recommendations regarding the changing of the existing requirements for auditing standards as a means to close the audit expectation gap.

Auditing is one of the most critical fields where the external auditors are always subjected to criticism and legal regulations which are mostly directed against them. Mostly this criticism arises because of lack of sufficient understanding of how the company law and auditing standards work and also due to related misconception about the actual role of an auditor (Porter, 1993). This lack of understanding is called expectation gap where the outcomes of the audit expected and its actual purpose varies. One solution to this fundamental issue is to reduce this expectation gap by providing a clear definition of auditor's role and also the audit function that is required to be performed by him. However, during this defining phase, it is necessary to consider whether an audit rotation would reduce this audit expectation gap.

The responsibility of this report is to show an opinion on these financial statements based on the audit for K&S Corporation Group. The audit report complied with the standards issued by the Auditing and Assurance Standards Board (AUASB). The standards comply with ethical requirements in order to plan and make a conclusion for assurance.

This can limit risk to a minimum. There are certain matters an Auditor need to consider prior to the audit. The client and the entity’s reputation must be considered, including the nature of its operations and practices. A closer look needs to be taken to the owners and those in key management positions to establish if there is any criminal activities taking place or looking at the overall attitude concerning the audit. These attitudes may include limiting the auditor’s scope of work in an in an inappropriate approach or wanting to keep the cost of the auditing low which could lead to influencing the outcome of the audit. But the reason behind the audit may also be relevant, matters such as appointing a new Auditing firm and the reason behind non-reappointment of a previous auditing firm can play a vital

The main purpose of this thesis is to understand how auditing contributes to the achievement of corporate goals. To make this possible we must understand the influence of the audit. Data will be collected through qualitative approach using open ended question because this is a method that generates and analyzes descriptive data, such as the written or spoken words and individual 's behavior observations. The empirical method is based on observation, documentation and interviews. The qualitative method with theoretical research will allow us to answer my questions and achieve my objective.