Auditing Cases

Auditing Cases

instructor resource Manual

fourth

edition

Mark S. Beasley

Frank A. Buckless

Steven M. Glover

Douglas F. Prawitt

do not coPy or redistribute

Prentice hall

Upper Saddle River, New Jersey

table

section

1

of

contents

client acceptance

S o l u tionS inc lu de d in t h iS Section

1.1

Ocean Manufacturing, Inc.

...........................

3

The New Client Acceptance Decision

section

2

Understanding the Client’s Business

and assessing risk

S o l u tionS inc lu de d in t h iS Section

2.1

Your1040Return.com

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Evaluating eBusiness Revenue Recognition, Information Privacy,

and Electronic Evidence Issues

2.2

Dell Computer Corporation

. . . . . . . . . . . . . . . . . . . . . . . . . . 25

Evaluation of Client Business Risk

2.3

Flash Technologies, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

R isk Analysis and Resolution of Client Issues

2.4

A sher Farms Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Understanding of Client’s Business Environment

section

3

Professional and ethical issues

S o l u tionS inc lu de d in t h iS Section

3.1

A Day in the Life of Brent Dorsey

. . . . . . . . . . . . . . . . . . . . . . . 59

Staff Auditor Professional Pressures

3.2

Nathan Johnson’s Rental Car Reimbursement

. . . . . . . . . . . . . . . . 63

Solving Ethical Dilemmas–Should He Pocket the Cash?

3.3

The Anonymous Caller

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

R ecognizing It’s a Fraud and Evaluating What to Do

3.4

WorldCom

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

The Story of a Whistleblower

3.5

Hollinger International

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

R ealities of Audit-Related Litigation

instructor resource...