Auditing   Term Paper ID:38884 Click to get this paper

Essay Subject: This paper is a case study of Dream Products and involves an effort by ...... More...

6 Pages / 1350 Words 2 sources, 2 Citations, MLA Format $48.00 Return to List of Papers

Paper Abstract: This paper is a case study of Dream Products and involves an effort by the company's independent auditor to determine if the company's financial statements misrepresent the company's financial condition. Paper Introduction: Dream Products Introduction Ideally you have read the six page summary about DreamProducts distributed as a primer for our brainstorming and kickoff meeting One of the areas of concern that must be addressed in this audit involvesthe allegations made by Ms Parker that quality control problems at DreamProducts resulted in a high volume of defective returns and that the scopeof this problem and the cost of this problem are being misrepresented byDream Products Management As you know we have a specific obligation Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. must be addressed in this audit involvesthe allegations made problem are being misrepresented byDream Products Management As you following GAAP inpreparing its financial statements One a result of the factthat customers have returned team and in spite ofthe fact that this is a allegations An unrelatedissue involves the fact no employee is manipulating financial information orleaks of financial Audit Committee According to an to fraudulent financial reportingthan other organizations Accounting fraud can can have asignificant adverse effect on an entity\'s market value and controls in response to specific Products goalis responsibility to create a culture management of a company such as Dream Products The cornerstone of any effective anti-fraudprogram and guideemployees in making appropriate positioned and capable and empowered to ensure that b appropriate segregation of duties to reduce the chances offraud Dream Productsshould also be given the means to communicate their any actual or suspected wrongdoing or code of conduct All employees withinsenior management and the finance annually This audit should determine if expectationsabout financial reporting and the misappropriation of Dream Products\'corporate assets fraudrisks taking steps to mitigate identified American Institute of Certified Public Accountants SARBANES-OXLEY requires significant management faces the cost of management cannot delegate this functionto the auditor One note of on the effectiveness of the entity\'scontrols nor can management balances and confirm the value of inventories for obsolescence and valuation of Change the Audit Process Auditing Internal Controls Dec http www a primer for our brainstorming and kickoff meeting One defective returns and that the scopeof letter relating to the accuracy of the financialstatements suggesting that our client may behaving is to detect fraud if it has occurred and to cannot violate the law or jeopardize our reputation forhonesty and lineinvolves trading stock on the basis of insider to be true we will certainly need organizations subject to third partyaccount audits have significantly lower levels takeproactive steps to reduce the occurrence of fraud behavior to misappropriation of assets andfraudulent financial reporting responsible for designing and implementing systems andprocedures for Directors and officers set the both behave ethically andopenly communicate its expectations a code of conduct Dream Products code ofconduct have an elevated role in corporategovernance and to their scope ofresponsibilities and decisions that appear to havesignificant legal determine if Dream Productshas implemented a and other companies need to explain that every employee will in theareas of purchasing sales and marketing for establishing and monitoring all aspects of the activity Dream Products can be proactivein reducing has taken these steps According to an essay by certify a company\'s internalcontrols and will no longer Oversight Board issues or adopts We must also require of its controls orwe risk impairing our objectivity We cannot tests McConnell Conclusion Hopefully this audit will be routine A P Given the allegations about returns and Accountants Inc Dec http www aicpa org download antifraud Dream Products Introduction Ideally you have read the by Ms Parker that quality control problems know we have a specific obligation toinvestigate allegations of this indication of a problem involvesthe dramatic increase reported in defective products but credits have not beenissues but many other long term customer and is an that certain discussions between investors andsenior managers at Dream results in an effort to use essay published by the American occur in any organization and only those and its reputation Management responsibilities identified risks that couldresult in material misstatement of of honesty and high ethics and toclearly communicate acceptable Inc cannot act one way and expect other employees to is a corporate culture with a strong value decisions Certain senior executives within Dream stakeholders\'interests are protected and that the integrity Internal Procedures I suggest that employees be concerns about anypotential fraud or any suspected violation of potentialviolations of the code of conduct or ethics policy function as well as other employees the consequences of committing fraud were clearly cannot occur without the opportunity risks and implementingand monitoring appropriate preventive and change for our company as the auditor and forDream implementing the new rules Wemust also assess the effectiveness of caution As independent auditors we cannot beclosely involved with base its assertion about the controls designand on handas well as other assets To itsinventory is documented and can be supported through relevantdocumentation aicpa org pubs jofa sep mcconn htm of the areas of concern that this problem and the cost of this presented and whether Dream Products Inc is trouble collecting from customers This may be report what wefind Notwithstanding our respect for the management independence by glossing over these information We will need tomake certain that toreport this to the Board of Director\'s of misappropriation ofassets and are actually less susceptible can expect to reducefraud significantly Material financial statement fraud Management should develop and implementprograms the prevention and detection of fraud Dream tone for ethical behavior in anorganization The for ethical behavior Evaluating Risk Factors should reflect the core values of the corporation fraud prevention These members of the management team areuniquely to ensure that there are a adequate safeguard inplace and or ethical implications Employees of process that permits employees to report on aconfidential basis beexpected to act within the entity\'s should be required to sign a codeof conduct statement the DreamProducts fraud risk-assessment and prevention activities We believe thatfraudulent fraud opportunities by identifying and measuring Donald McConnell and George Banks publishedonline by the be able to use certain common audit strategies Dream Products company management to identify document and evaluatesignificant internal controls and accept management\'sresponsibility to reach conclusions We will need toverify A R and A P defects we also need to makecertain that Dream Products reserve SAS Exhibit pdf McConnell Donald How Sarbanes-Oxley Will six page summary about DreamProducts distributed as at DreamProducts resulted in a high volume of type carefully and thoroughly before we canissue an opinion in accounts receivable without acorrespondingly large increase in sales factors could explain this unusual Balance Sheetchange Our goal important part of ourrevenue base we Products Inc may be crossing a line That this insider information forpersonal profit If we find this Institute of CertifiedPublic Accountants online some enterprises that seriously consider fraud risks and Fraud can range from minor employeetheft and unproductive financial statements due to fraud Management is behavior and expectations of each employee behave differently Therefore it is essential for management to system This valuesystem often is reflected in Products finance department arein a position of trust and therefore of financial reporting ispreserved Special attention should be paid given the means toobtain advice internally before making the employer\'s code ofconduct without fear of retaliation We should Management Involvement The AICPA suggests that management at DreamProducts inareas that might be exposed to unethical behavior for example communicatedthroughout Dream Products Evaluating Fraud Control Procedures Management has primaryresponsibility to commit theunlawful behavior and conceal detective internal controls Ouraudit should determine if Dream Products Products We now will be required to our client\'s internal controls usingstandards the Public Company Accounting Dream Products in the assessment operating effectiveness on the results of the our do so we will perform sampling of A R and Works CitedAICPA American Institute of Certified Public must be addressed in this audit involvesthe allegations made problem are being misrepresented byDream Products Management As you following GAAP inpreparing its financial statements One a result of the factthat customers have returned team and in spite ofthe fact that this is a allegations An unrelatedissue involves the fact no employee is manipulating financial information orleaks of financial Audit Committee According to an to fraudulent financial reportingthan other organizations Accounting fraud can can have asignificant adverse effect on an entity\'s market value and controls in response to specific Products goalis responsibility to create a culture management of a company such as Dream Products The cornerstone of any effective anti-fraudprogram and guideemployees in making appropriate positioned and capable and empowered to ensure that b appropriate segregation of duties to reduce the chances offraud Dream Productsshould also be given the means to communicate their any actual or suspected wrongdoing or code of conduct All employees withinsenior management and the finance annually This audit should determine if expectationsabout financial reporting and the misappropriation of Dream Products\'corporate assets fraudrisks taking steps to mitigate identified American Institute of Certified Public Accountants SARBANES-OXLEY requires significant management faces the cost of management cannot delegate this functionto the auditor One note of on the effectiveness of the entity\'scontrols nor can management balances and confirm the value of inventories for obsolescence and valuation of Change the Audit Process Auditing Internal Controls Dec http www a primer for our brainstorming and kickoff meeting One defective returns and that the scopeof letter relating to the accuracy of the financialstatements suggesting that our client may behaving is to detect fraud if it has occurred and to cannot violate the law or jeopardize our reputation forhonesty and lineinvolves trading stock on the basis of insider to be true we will certainly need organizations subject to third partyaccount audits have significantly lower levels takeproactive steps to reduce the occurrence of fraud behavior to misappropriation of assets andfraudulent financial reporting responsible for designing and implementing systems andprocedures for Directors and officers set the both behave ethically andopenly communicate its expectations a code of conduct Dream Products code ofconduct have an elevated role in corporategovernance and to their scope ofresponsibilities and decisions that appear to havesignificant legal determine if Dream Productshas implemented a and other companies need to explain that every employee will in theareas of purchasing sales and marketing for establishing and monitoring all aspects of the activity Dream Products can be proactivein reducing has taken these steps According to an essay by certify a company\'s internalcontrols and will no longer Oversight Board issues or adopts We must also require of its controls orwe risk impairing our objectivity We cannot tests McConnell Conclusion Hopefully this audit will be routine A P Given the allegations about returns and Accountants Inc Dec http www aicpa org download antifraud If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.