Toy Central - Assessing the Possibility of Fraud and illegal Acts. - Case Study Example

Free

Extract of sample
Toy Central - Assessing the Possibility of Fraud and illegal Acts.

The AU Section 317 clearly states that illegal acts may have direct or indirect impact on financial statements. Some illegal acts cause direct and material effect on the determination of financial amounts. In contrast, certain illegal acts raise material but indirect threats to the accuracy of financial statements. The next part of this section discusses with the “auditor’s consideration of the possibility of illegal acts”. This section specifically requires how auditors must respond to illegal acts that may have a direct or indirect impact on financial statements. In order to comply with AU Section 317, clients must have specific provisions related to the prevention of illegal acts. Such a provision is very essential for auditors to deal with illegal acts in the absence of specific evidence. This section also indicates that auditors must get all possible assistance from client staff in order to perform a good audit work. The AU Section 317 precisely insists that auditors should be provided with adequate information regarding the scope of the work. This section’s requirements particularly deal with due diligence that an auditor has to give while performing an audit work. 2. The identified payment to the International Workers Transport Union cannot be considered as an illegal act. The TCC’s VP-Operations requisitioned the payment. ...Show more

Summary

Toy Central - Assessing the Possibility of Fraud Toy Central - Assessing the Possibility of Fraud 1. The Public Company Accounting Oversight Board has clearly defined ‘illegal acts by clients’ under AU Section 317. As in general case, AU Section 317 describes illegal acts as violations of laws or governmental regulations…
Author : kale83
Save Your Time for More Important Things
Let us write or edit the case study on your topic
" Toy Central - Assessing the Possibility of Fraud and illegal Acts."
with a personal 20% discount.
Grab the best paper

Related Essays

Toy Central Corporation
As Deloitte, Touche, Ernst and Young (2004) point out, an effective internal control over financial reporting is the key element to improve management of records and enhanced preparation of consistent financial reports. This comprehensive process requires the involvement of people at all levels of the company.
3 pages (750 words) Case Study
Toy Central-Accounting Issues
The paper tells that toy central financial information should be confirmed to adhere to the generally acceptable accounting principles alongside the value estimates made by the companies’ management. The financial statements of Toy central indicate that the company had experienced difficulties in its corporate governance and consequently financial difficulties.
4 pages (1000 words) Essay
Fraud, Errors and Illegal Acts
Auditors are to certify the effectiveness of internal controls of an entity wherein they conducted audit, have to keep records, to advise management and so on. With regard to SAS # 82, auditors are responsible to plan and execute the audit in order to have reasonable assurance regarding availability of financial statement free from misstatement.
5 pages (1250 words) Term Paper
Fraud
From the author, we learn that these two had very conflicting character traits in that Kearns had learned about business from a very tender age, and as he grew, he acquired business skills that made him prosper. However, he always lived beyond his means which forced him to work even harder to get the money.
4 pages (1000 words) Essay
Employee Fraud
The law requires companies to retain accurate financial statements so that they can ensure proper accounting for their records. Organizations use various accounting systems and methods to ensure that they maintain good books of accounts. Before accountants engage in preparing the financial statements, they should check the client’s systems of recording and processing the various transactions.
3 pages (750 words) Essay
Corporation Fraud
Auditors revealed that MF Global suffered a “very severe loss of liquidity” (Bunge 2) as its second quarter earnings revealed a “net loss and a highly leveraged proprietary position in European sovereign debt” (Weidner 4). Specifically, MF Global “had leveraged a $6.3 billion exposure to debt of peripheral European sovereign bonds in the form of maturity transactions” (Weidner 4).
3 pages (750 words) Essay
Financial Statement fraud and Revenue recognition fraud
Nevertheless, many corporates and business leaders have been neglecting these standards thus propagating financial frauds (Pinkasovitch 1). Ideally, the increased use of technology plays a significant role in fostering fraudulent activities in the global market where criminals can now commit wide range and complex financial crimes.
4 pages (1000 words) Essay
Assignment 2: Accounting and Audit Enforcement
The SOX act stipulates that the top management of a public company must personally certify the accuracy of the financial information presented to
5 pages (1250 words) Research Paper
The driving forces in the changing role of accountants
cture, the business segment is witnessing an impact due to the mixture of globalisation, high incidence of market volatility and transformational innovation. The effect of these challenges is further vitiated by fast development and advances in science and technology,
20 pages (5000 words) Literature review
Impact of Data Warehousing and OLAP Models on Management Accounting
In this study, we are interested with the impact of the OLAP in the decision making of the business.  I am contacting your office to set up a mutually convenient time for this informational meeting.
160 pages (40000 words) Essay
Money and banking
that may take place due to insurance companies providing restriction less insurance is that individuals may themselves try to cause fire and then claim for damages. 5. The benefit of the adoption of too-big-to-fail policy is that banks will take less stress and may invest in
1 pages (250 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT