Refer to the Focus on Fraud feature Warranty Accrual Accounting. Obtain a copy of the related SEC

Question:

Refer to the Focus on Fraud feature “Warranty Accrual Accounting.” Obtain a copy of the related SEC AAER (SEC AAER No. 3765 / April 19, 2016) and other relevant news articles.

a. Why did Logitech’s management choose not to follow GAAP? Consider the fraud triangle in answering this question.

b. Does the AAER provide any insight as to whether the warranty “problem” was material?

c. Do you think that the Logitech auditors exhibited an appropriate level of professional skepticism?

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Auditing A Risk Based-Approach

ISBN: 978-1337619455

11th Edition

Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

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Question Posted: Sep 15, 2018 01:54 PM

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Refer to the Focus on Fraud feature Warranty Accrual Accounting. Obtain a copy of the related SEC

Question:

Step by Step Answer:

This AAER describes three fraudulent accounting issues 1 One related to writing down a failed produc...View the full answer

Auditing A Risk Based-Approach

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