Alla Khodzhandiev ACC 723 September 1, 2012 Case 1.1 1) The following parties were responsible for the Enron crisis: a. Anderson canvas hale for non realizing that the notes receivables were not supposed to be reported in the assets section. The firm shouldve been aware of the proper categorization. b. caution of Enron was to blame for not properly presenting financial statements. Lay, Skilling and Fastow shouldve been more concerned with the integrity of their company. 2) jeer to Section 201 of SOA, the three out of nine consulting services that chaffer firms are prohibited from providing for thickenings that are public companies are: a. concern or human resource functions: completely takes away the scrutiniseors independence, it creates a conflict of interest and will lead to cut corners as an listener to make a name for himself or herself as a manager. b. Internal size uping outsourcing services: will require to audit their own work and if certain di scretions werent found by the internal meeter might be overlooked the crank time around. Therefore should be done by a second person. c. Legal services and expert services irreverent to the audit: The idea of lawsuits and other legal action brought against the customer will disturb the auditors perspective.
3) 4) According to the PCAOB audit documentation standards the key requirements regarding the preparation and retention of workpapers are: The auditor should prepare documentation in connection with a control review of interim financial information. The papers should be designed to have-to doe with the circumstances of the particular engagement. ! Should include any real findings or issues and be clearly understood and interpreted by its users. The workpapers decease to the audit firm. 5) a. The audit committee must pre- respect wholly services provided by the auditor (section 202). b. Institutions should require a whirling of the lead partner every seven historic period with at timeout of two years...If you want to get a right essay, erect it on our website: OrderCustomPaper.com
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