Paul Polishan apparently dominated Leslie Fay’s accounting and financial reporting functions and the individuals who were his subordinates. What implications do such circumstances pose for a company’s independent auditors? How should auditors take such circumstances into consideration when planning an audit?
Answer to relevant QuestionsExplain why the SEC ruled that BDO Seidman’s independence was jeopardized by the lawsuits that named the accounting firm, Leslie Fay, and top executives of Leslie Fay as codefendants.When he became a member of the Next-Card audit engagement team, Oliver Flanagan hoped that Thomas Trauger would serve as his mentor. What responsibility, if any, do senior audit personnel have to serve as mentors for their ...Professional auditing standards identify the principal “management assertions” that underlie a set of financial statements. What were the key assertions that Arthur Young should have attempted to substantiate for the ...Assume that you were a member of the Crazy Eddie audit team in 1986. You were assigned to test the client’s year-end inventory cutoff procedures. You selected 30 purchase invoices entered in the accounting records near ...Identify the fraud risk factors posed by DHB for its independent auditors. Which of these factors, in your opinion, should have been of primary concern to those auditors?
Post your question