Question: Consider the information presented in the chapter regarding the audit of U.S. Foodservices (USF). a. Describe how the auditors failed to gather sufficient appropriate evidence

Consider the information presented in the chapter regarding the audit of U.S. Foodservices (USF).
a. Describe how the auditors failed to gather “sufficient appropriate evidence” in the audit.
b. Did Hall and Meyer exercise “professional skepticism” in the audit? Explain your answer.
c. What type of fraud did the company commit?
d. What were the auditors’ responsibilities regarding the fraud committed at USF? Did they meet these responsibilities?
e. Consider the fraud conditions of pressure, opportunity, and rationalization.
Which of the elements seems to dominate in this fraud? Explain your answer.

Step by Step Solution

★★★★★

3.30 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The auditors failed to gather sufficient appropriate evidence to determine that the rebates were n... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

386-B-A-A-A-N (3588).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Consider the options presented in the chapter regarding structural design, coordination and control, and corporate culture. How would you characterize the interplay among these dimensions at Infosys?

In addition to the information presented in Mini Exercise 14.1, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25% of the next month's budgeted production as raw...

In addition to the information presented in Mini Exercise 14.1, the following cost behavior patterns are budgeted for ABC Company's operating expenses each month: Fixed costs: salaries, $2,000; rent,...

Suzie and lan are continuing their work on the substantive audit testing program for the Cloud 9 audit. Suzie has convinced lan that analytical procedures are not the only substantive procedures they...

Today, they are focusing on asset accounts. Significant accounts on Cloud 9 ' s trial balance that they still need to address include cash and inventory. Suzie asks lan to suggest what key factors...

Agency Funds. Does the government operate a tax agency fund or participate in a tax agency fund operated by another government? Does the government act as an agent for owners of property within a...

1. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor audit regarding: a. The predecessor's evaluation of matters of continuing accounting...

Apple Corporation is authorized to issue 300,000 shares of common stock, $1 par, of which 140,000 shares had been issued. The corporation initiated a stock bonus plan during 2020 for designated...

On February 15, 2012, Rooker, Madras & Associates compiled the following information concerning inventory for five years. They used the dollar-value LIFO retail inventory method. Compute the...

When calculating interest and future value of an ordinary annuifg, money is invested at what point in the year ( period ) ? At the begining of each period At no particular time within the annuity...

Tranquil: Select the alternative that conveys opposite meaning as the word given in bold letters. (a) Serene (b) Disturbed (c) Cowardly (d) Beautiful (e) Sumptuous

Using the sample sizes determined in Problem 8- 25 and the number of deviations shown here, determine the sample deviation rate, the computed upper deviation rate, and the auditors conclusion (i. e.,...

Determine the sample size for each of the control procedures shown in the followingtable: Control Procedure Parameters Risk of incorrect acceptance Tolerable deviation rate Expected population...

Using the sample sizes determined in Problem 8- 27 and the number of deviations shown here, determine the sample deviation rate, computed upper deviation rate, and the auditors conclusion (i. e.,...

Bond S is a 4 percent coupon bond Bond T is a 10 percent coupon bond Both bonds have 11 years to maturity, make semiannual payments, and have a yield to-maturity o(7 percent It interest rates...

A financial calculator is recommended. Suppose a $1,100 5% bond with annual coupons and a redemption payment of $1,260 was purchased on February 23, 1995 at a price to yield the new buyer 8.2%...

Steel Corp. Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2. Included in Steel Corp's assets is $90 million in cash and risk-free securities. Assume the...