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Auditing Cases

In: Business and Management

Submitted By 20032323
Words 33542
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accounting fraud and auditor legal liability c a S eS inc lu de d in t hiS Se ction

4
89 99

4.1 Enron Corporation and Andersen, LLP
Analyzing the Fall of Two Giants

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4.2 Comptronix Corporation 4.3 Cendant Corporation

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Identifying Inherent Risk and Control Risk Factors
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111 119 127 137

Assessing the Control Environment and Evaluating Risk of Financial Statement Fraud
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4.4 Waste Management, Inc. 4.5 Xerox Corporation 4.6 Phar-Mor, Inc.

Manipulating Accounting Estimates
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Evaluating Risk of Financial Statement Fraud
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Accounting Fraud, Litigation, and Auditor Liability

instructor resource Manual — do not coPy or redistribute

instructor resource Manual — do not coPy or redistribute

enron corporation and andersen, llP analyzing the fall of two giants inS tr uc t ional o b je c t ive S
[1]

c a s e

4.1

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt

[2]

[3]

To help students understand what happened at Enron Corporation and how Andersen’s involvement with Enron led to the accounting firm’s downfall. To enhance students’ appreciation of the importance of understanding an audit client’s core business strategies. To develop students’ understanding of the role of confidence, reputation, and trust both in the corporate and auditing professions.

[4]

[5]

[6]

To provide a venue for exploring professional issues relating to auditor independence and the provision of non-audit services for clients. To introduce students to the current debate on rules- versus principles-based accounting standards and related...

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