Question: Refer to the opening vignette regarding Peregrine Financial Group. In 2013, the U.S. Commodity Futures Trading Commission (CFTC) charged Jeannie Veraja - Snelling, a U.S.

Refer to the opening vignette regarding Peregrine Financial Group. In 2013, the U.S. Commodity Futures Trading Commission (CFTC) charged Jeannie Veraja - Snelling, a U.S. certified public accountant and sole practitioner, with failing to perform an audit in accordance with GAAS. Based upon the case facts, explain:
a. What significant control deficiencies the auditor appeared to miss;
b. The deficiencies in the auditor's confirmation process;
c. Whether you think a sole practitioner would have the competence to perform a quality audit of an organization such as Peregrine Financial Group. (Keep in mind that although it is not a public company, it has a regulator, the U.S. Commodity Futures Trading Commission, which is similar to a securities regulator.)

Step by Step Solution

★★★★★

3.42 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Significant control deficiencies that the auditor appeared to missed are Wasendorf was the only one who could open the mail from the bank This would be a basic question that the auditor would ask wh... 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)

1148-B-A-A-A-N(4757).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Refer to the opening vignette regarding the Livent case. REQUIRED a. Explain how this case illustrates the importance of framing the issue. b. The ICAO disciplinary committee argues that professional...

Why was the graphic associated with the opening vignette regarding the 2016 presidential election an effective way to communicate the voter outcome for 50 states? What else could have been used to...

Evaluate the use of multiple colors in the graphic associated with the opening vignette regarding the 2016 presidential election. Would you consider its use effective or ineffective? Why? Can you...

REFCO: OUTWITTING THE AUDITORS Joe Defraud finished his breakfast. Joe had been with Grant Thornton for 15 years and was the lead auditor on the Refco engagement.. He had just talked to Grant...

I need a tutor help answer this question. Read the article ?Who Regulates Whom and How?? in the module resources and answer the following prompts in your initial post: Identify three policy problems...

Peregrine was audited by a one-person CPA firm. How did this play a role in the failure to detect the fraud? Should this have been a red flag for regulators? Why or why not? Peregrine - Twenty Years...

Refer to the Professional Judgment in Context feature at the beginning of the chapter. Additional details on PFG and Wasendorf are presented below. On July 14, 2012, Russell Wasendorf, Sr. attempted...

Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering whether to invest in your company. Discuss your reasons for...

Show that if there exists a binary (n, M. d)-code, then there also exists a binary (n-1, M', d)-code with M' > M/2. Deduce the following: A(n, d) 2A(n-1.d)

The federal government recently granted funds for a special program designed to reduce crime in high-crime areas. A study of the results of the program in eight high-crime areas of Miami, Florida,...

Why is depreciation added to net income to determine cash flow from operations? Multiple Choice To compensate for financial risk. Depreciation is an expense but not a cash outflow. It is standard...

Can you establish application oriented business rules within the logical design of the database?

Distinguish between random selection and statistical measurement. State the circumstances under which one can be used without the other.

Describe what is meant by a sampling unit. Explain why the sampling unit for verifying the existence of recorded sales differs from the sampling unit for testing for the possibility of omitted sales.

Explain the difference between an attribute and an exception condition. State the exception condition for the following audit procedure: the duplicate sales invoice has been initialled, indicating...

equipment can be sold for $140,000 at the end of the ten-year project and the cost of capital for this project is 7%. What is the after-tax cash flow of the project at disposal? ! (Rourid to the...

Snoke Inc's will pay a dividend of $10 next year. The required rate of return is 10% and dividends are expected to grow 5% after next year. What is Snoke's estimated value of the stock at the end of...

We are evaluating a project that costs $724,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected...