Principles of auditing:

Im doing a research paper on Leslie Fay Company and the fraudulent activity that occurred.

The Leslie Fay Company, which was indicted for fraud on the allegation that it, was falsifying invoices to show an increase in profits. Furthermore, the falsification prompted shareholder to make an investment in the company based on the numbers reported in Companys financial statement

The exact question Im being asked to write on is stated below as number 1.

1. Your report must describe the issues surrounding the company and any company policies in relationship to the impact those might have on public audits/accounting.

Im struggling with the 2nd part of the question. Can you assist with providing some information around general company polices in relationship to the impact that those polices might have on public audits/accounting? Thank you!