CABLECO Parts IV & V - Notice which members of the...

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ACCY 360/560 CableCo Audit Simulation Acts IV and V Setting: Act IV takes place several weeks after the end of Act III. The audit team has nearly completed the interim fieldwork. Act V takes place near the conclusion of the audit engagement as the audit team is wrapping up fieldwork and resolving any remaining "loose ends." Specific matters: In these acts, keep an eye on the following issues: 1. The usefulness of analytical review procedures in directing the auditor's attention to matters that need further investigation. 2. How unexpected findings and changed circumstances may cause revisions to the planned audit work indicated by the audit program. 3. The need for tactful and professional behavior to the client's personnel at all levels of the organization, even when they aren't being very helpful (unintentionally or otherwise). 4. The hierarchy of authority and the review process at each level.
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Unformatted text preview: Notice which members of the audit team are involved in client discussions of matters that might be seen as "sensitive." 5. Management letter comments (suggestions) may arise from any phase of the audit engagement. Discussion questions: 1. What changed circumstances are discovered in Act IV? What are the audit implications? 2. What material F/S misstatements were identified in Act IV? What else was discovered that might require F/N disclosure? 3. Why was the chairman of CableCo so adamant that the proposed disclosure not be made? How do the senior and the manager apparently differ in their attitudes about conflict resolution in this case? What options would PRS have had if their client would have continued to have refused to make the disclosure? 4. What M/L comments are evident from Act IV? From Act V?...
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This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

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