Case 1 Lehman Brothers Holdings, Inc.
In the case of the bankruptcy of Lehman, both the company and its independent auditor
E&Y were subject to charges and allegations. The blames centered on how Lehman
inappropriately apply its Repo 105 accounting policy
SubstantiveTests
I.
SummaryofAllSections
A.
Admin
A.1.
B.
Exam2Preview
Questions
B.1.
When/Wheretousesubstantiveprocedures
B.1.a) How does the auditor determine which accounts & transactions require
substantive procedures?
(B.1.a.1)
The auditor should des
ASSIGNMENT 5- K 2.3 TAKE-TWO INTERACTIVE SOFTWARE (I)
Writing: You must follow the writing requirements located below or points will be deducted.
Length: The case should be three (3) pages long.
Due: at the beginning of class
I/G: Individual case (one cas
CASE REQUIREMENTS &
INSTRUCTIONS
This document has two main parts(1) the requirements for all six graded assignments and (2)
instructions for how to write them. This is subject to change.
TABLE OF CONTENTS
(1) Assignment Requirements.1
Assignment 1-K 1.2-
Case 5-K 2.3 Happiness Express
Management Assertions
The objective of mailing confirmation was to obtain requested information from the
confirming party or a response indicating whether they agree or disagree with the information in
the request. Through t
CASE 2.3
TakeTwo Interactive Software, Inc.
Grand Theft Auto ranks among the best-selling video games of all time as well as one
of the most controversial.1 By the time Grand Theft Auto Vwas released in 2013, over
125 million copies of the video game ha
REVIEW & PRACTICE QUESTIONS EXAM 3 MATERIAL
TIPS (TO MAKE YOUR LIFE EASIER)
Like last time I have included questions AND key ideas from each day.
I have included relevant information from the comprehensive portion of the exam
Important note: This informat
Day 11 Materiality & Risk
Assessment
In Class
Agenda
Linking understanding the client (from last time) to
risk assessment
1.
How do we deal with these risks Audit Risk Model
Materiality
2.
3.
Determining Audit Risk
Assessing Inherent Risk
How risk assessm
ACCO Brands Corporation
Consolidated Statements of Operations and
Reconciliation of Adjusted Results (Unaudited)
(In millions of dollars, except per share data)
Twelve Months Ended December 31,
2009
2010
Net sales. $
Cost of products sold.
Gross profit.
R
P1: JsY
ACPA096-p51-270
ACPA096-Vol-I-PS.cls
July 16, 2009
16:29
145
Understanding the Entity and Its Environment
.125
Appendix A
Understanding the Entity and Its Environment
A1. This Appendix provides additional guidance on matters the auditor may
consid
Exam1PreviewCoverage
Approx. % Coverage Approximate %
in Class
of Points
Days 1 & 2 Intro & Overview
12%
11
Day 3 - History
8%
8
Day 4 Standards
15%
14
Day 5 Reports
22%
25
Day 6 Ethics
19%
23
Day 7 Liability
16%
13
Day 8 Assertions
8%
6
100%
100%
Totals
Day 11 Materiality & Risk
Assessment
Prelecture
Where are we?
Still planning and beginning the
audit
Materiality and audit
risk are considered throughout
the audit, in particular, when a.
determining the nature and
extent of risk assessment
procedures to
Day 10 Client Acceptance &
Preliminary Risk Assessment
Postlecture
1
Agenda
1. Overview
2. Planning & understanding the client is an iterative &
continuous process
3. Gaining an understanding of the client
4. Communication between predecessor & successor
1666 K Street, N.W.
Washington, DC 20006
Telephone: (202) 207-9100
Facsimile: (202) 862-8430
www.pcaobus.org
PROPOSED AUDITING STANDARDS
THE AUDITOR'S REPORT ON AN AUDIT OF
FINANCIAL STATEMENTS WHEN THE
AUDITOR EXPRESSES AN UNQUALIFIED
OPINION;
THE
AUDIT
Day 11 Materiality & Risk
Assessment
In Class
Agenda
Linking understanding the client (from last time) to
risk assessment
1.
How do we deal with these risks Audit Risk Model
Materiality
2.
3.
Determining Audit Risk
Assessing Inherent Risk
How risk assessm
Day 13
Auditor
Response to
Fraud
Prelecture
Agenda
1.Evolution of auditors responsibility for
fraud
2.Fraud risk indicators
3.International differences
Evolution in Professional
Responsibilities for Fraud Detection
In 1902, L. R. Dicksee, the leading au
Day 12 Earnings
Management & Management
Fraud
In Class
1
Agenda
1.
2.
Intro
Earnings Management
What is earnings management?
How do you manage earnings?
Why do executives manage earnings?
Motivation
Before:
Enron-preferred employer in Houston area,
plaque
Day 12 Earnings
Management & Management
Fraud
Prelecture
1
Agenda
1.Intro
2.Definitions
Intro
AU-C 200.06 As the basis for the
auditors opinion, GAAS require the auditor
to obtain reasonable assurance about
whether the financial statements as a whole
are
Day 5 Reporting
Audit Report Opinions
Unqualified
Not restricted by reservations
Unqualified w/ Explanatory Paragraph or Modification
Auditor wants to caution the reader of risk/danger
Usually involves the addition of a one or two sentence paragraph in
PRACTICE QUESTIONS EXAM 1 MATERIAL
TIPS (TO MAKE YOUR LIFE EASIER)
Important note: This information (along with the PowerPoint slide called Exam 1 Preview)
should help focus your studying. It is intended as a helpful but incomplete guide. These are
not ne
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