Question
Use Case-1.9 ZZZ Best Company Inc. PG121, Case 3.5 Goodner Brothers Inc. PG303, Case 2.10 Locate Plus Holdings Corporation PG 257, or any three cases
Use Case-1.9 ZZZ Best Company Inc. PG121, Case 3.5 Goodner Brothers Inc. PG303, Case 2.10 Locate Plus Holdings Corporation PG 257, or any three cases from the textbook- Contemporary Auditing 11e
Accounting Standard 2610 (AS2610) - Initial Audits Communications Between Predecessor and Successor Auditors describes the following:
09 The successor auditor should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining whether to accept the engagement. Matters subject to the inquiry should include
- Information that might bear on the integrity of management.
- Disagreements with management as to accounting principles, auditing procedures, or other similarly significant matters.
- Communications to audit committees or others with equivalent authority and responsibility 4 regarding fraud, illegal acts by clients, and internal-control-related matters. 5
- The predecessor auditor's understanding as to the reasons for the change of auditors.
- The predecessor auditor's understanding of the nature of the company's relationships and transactions with related parties and significant unusual transactions.5A
Looking back at the cases, please provide 3 instances in which the above standard was neglected, misused, and/or not considered, please use 3 different cases.
In your response, name the case, a brief description of the fraud, and how the auditors failed to use the standard above, and provide what they should have done instead?
CASES ARE TOO LONG TO FIT IN
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