Please read the Waste Management Case (find this case in E-Reserves) AND the read the pages...

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Please read the Waste Management Case (find this case in E-Reserves) AND the read the pages on management's assertions on pages 243-246 in chapter 6. Discuss and arrive at conclusions to the questions below. Turn in one response to the questions below, per team. 1) Indicate your team member names. 2) What was the nature of the economic environment in which Waste Management operated? What were the inherent risks of the business environment that put pressure on Waste Management to report fraudulent financial statements? 1 2 3 4 5 3) Discuss how the auditors failed. Consider framing your discussion in terms of the professional standards that they violated (see chapter 2 and 3 of the textbook). Also, consider the broad threats to independence on page 83. Which threats were present? 6 4) Waste Management fraudulently reported earnings in numerous ways. In a double entry system, if one account is misstated, then there is another related account misstated. Given the descriptions in the case, prepare a grid showing four or more misstatements. (optional) (optional) Misstated Account Was account at left over or understated? Related misstated account Was account over or understated? 5) Correct the misstatements using the Accounting Equation. You may not know the amount of the entries. So, instead of dollars, simply indicate the amount by the following with a symbol such as $X or $XX. Show the account and the direction (+ or -) needed to make the correction. Please read the Waste Management Case (find this case in E-Reserves) AND the read the pages on management's assertions on pages 243-246 in chapter 6. Discuss and arrive at conclusions to the questions below. Turn in one response to the questions below, per team. 1) Indicate your team member names. 2) What was the nature of the economic environment in which Waste Management operated? What were the inherent risks of the business environment that put pressure on Waste Management to report fraudulent financial statements? 1 2 3 4 5 3) Discuss how the auditors failed. Consider framing your discussion in terms of the professional standards that they violated (see chapter 2 and 3 of the textbook). Also, consider the broad threats to independence on page 83. Which threats were present? 6 4) Waste Management fraudulently reported earnings in numerous ways. In a double entry system, if one account is misstated, then there is another related account misstated. Given the descriptions in the case, prepare a grid showing four or more misstatements. (optional) (optional) Misstated Account Was account at left over or understated? Related misstated account Was account over or understated? 5) Correct the misstatements using the Accounting Equation. You may not know the amount of the entries. So, instead of dollars, simply indicate the amount by the following with a symbol such as $X or $XX. Show the account and the direction (+ or -) needed to make the correction.

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