Summary

In: Business and Management

Submitted By xlz8908
Words 2542
Pages 11
2.6 case
1. E&Y officials believed that the CBI audits were high-risk engagements. Under what general circumstances should an audit firm choose not to accept a high-risk engagement?
Auditing is riskier profession than people realize. Every time the auditor agree to take on an auditing engagement, it comes with potential risks:
(1) The audit risk, which is defined as the risk auditor will make a mistake, such as failing to catch a significant error or misstatement on a balance sheet or other document. Possible signs of a high risk engagement include a company with complex transactions, lack of international control as well as the management’s dishonestly.
(2) Client business risk, which is a potential client is foundering financially, or may even go out of business. Knowing the client's situation will let you anticipate the types of fraud or misstatement you might discover if you do take the job. If the client goes out of business or files for bankruptcy after the audit, it's also possible that creditors or investors will sue you, claiming you should have foreseen the problem in your audit.
(3) And auditor business risk, which is the risk that you accept the wrong engagement. Even if the client’s not in financial difficulty, some engagements increase the chance of a lawsuit.
[High risk audit engagement Vs. low risk audit engagement, by Fraser Sherman, Demand Media http://smallbusiness.chron.com/high-risk-audit-engagement-vs-low-risk-audit-engagement-25901.html ]
If above risk cannot mitigate to acceptable level, the auditor firm will not accept this engagement.
In addition, according to the AU C-210.03, the auditor is to accept an audit engagement for a new auditor client only when the basis upon which it is to be performed has been agreed on through: a. establishing whether the preconditions for an auditor are present and b. confirming that a common…...

Similar Documents

Summaries

...Summary of “I Was a Teenage Hijabi Hockey Player” In Shema Khan’s essay “I Was a Teenage Hijabi Hockey Player” she humorously defends some of the stereotypes associated with her religion. As she begins a casual conversation about hockey over lunch, Khan notices her colleagues’ disbelief. Female Muslims aren’t expected to follow or be interested in hockey, or any sport for that matter. In response, Khan goes on to display her knowledge and passion of the Montreal Canadiens. She lists players, stats, and facts just like any true hockey fan would. Furthermore, Khan recounts playing street hockey as a child; choosing a player she idolized to play as. Lastly, Khan further shows her passion for the sport as she describes her efforts to start a women’s intramural league at Harvard. Khan concludes her essay in the present; playing street hockey with her kids as she did in her childhood. Thus, further proving her passion for hockey, and shattering a stereotype. Summary of “What We Are Fighting For” In his essay “What We Are Fighting For”, Rex Murphy clarifies the reasons for Canada’s involvement in Afghanistan. To begin, Murphy states Canada’s aid in eradicating the Taliban Government was because of our country’s alliance with the USA, as well as in retaliation of the Candians killed on 9/11. He continues on to say that in order to protect against future attacks, the afghani citizens would need assistance in building a new type of government. In addition, Murphy explains that......

Words: 344 - Pages: 2

Summary

...SUMMARY Writing a summary means presenting the main ideas or facts in a logical and structured sequence in your own words using signposting language 1) Mention the source and the author (if it applies) The article/ video was originally published in... It is written by... The author of the article is... The article comes from the website 2) State the main question or problem the article deals with The article/ video is devoted to the question of ... The article/ video deals with the problem of.. We learn about ............in this article As the headline implies, the article/video focuses on ... 3) Step by step, follow through some main ideas, arguments or the development of the question in the article First, the author says.. In the introductory part of the article, the author touches upon.. The article opens up with Then he states/describes/explains/comments on/touches upon/introduces.. The author goes on telling about In addition, we learn .. The author goes on to tell The author passes on Further on/ after that/ next, he makes a comment on .. The article also provides information on It gives interesting facts/ valuable data on .. The author draws the reader’s attention to ... He emphasizes the significance of .. The article might be of interest to .. Finally, the author points out/ stresses .... On the one hand, On the other hand, There is also an opinion 4) Summarize To sum it up, the author manages to......

Words: 262 - Pages: 2

Summary

...I. CASE SUMMARY Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffee house company in the world, with 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 as a Seattle coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in the early 1980s but lost money on its late 1980s expansion into the Midwest and British Columbia. Its fortunes did not reverse until 1990 when it......

Words: 384 - Pages: 2

Summary

...SUMMARY ON PAPER: REDUCING GREENHOUSE GAS EMISSIONS THROUGH OPERATIONS AND SUPPLY CHAIN MANAGEMENT This paper explains how organisations, be it big or small, can reduce their carbon footprint and reduce greenhouse gas emissions by trying to develop and nurture “zero emission” supply chains.The author says that emission reduction and profitability are not mutually exclusive and can be implemented regardless of the scale of the organisation. The author has taken two examples, Walmart, and ZETA communities, a startup in the building industry. Both these examples show how efforts to reduce their greenhouse gas emissions has resulted in increased profits.Walmart, having an extensive supply chain had to make various changes to arrive at this juncture. On the other hand, ZETA communities, has been a sustainability-focused company from the start. The author then argues, that although Walmart has reduced its emissions, its levels are still a far cry from what is needed to achieve the prescribed standards of reaching 50% of 1990s levels by 2050. Also, the first phase of changes was the easiest, all changes hereafter would be much more difficult and expensive to make. Even in the case of ZETA communities, its buildings generate as much electricity as they consume, as well as enough to cover the emissions created in the manufacturing process. But the emissions given out by the production of building materials is something it has failed to address, particularly in the cement industry. ...

Words: 430 - Pages: 2

Summary

...Reflection Summary Gene Kimball, Rachel Diaz, Nikki Smith ECON/372 June 1, 2014 Spyridon Patton Reflection Summary A supply chain is the system of organizations, people, activities, information, and resources required to put a product or service in motion. Activities of the supply chain change natural resources, raw materials, and components into a final product that is delivered to the consumer or customer. In some supply chains; used products can come back into the supply chain in a recycling value. In other words a supply chain is when all of the parties involved are directly or indirectly working for customers. This includes transportation, warehouses, retailers and customers. All of this creates a dynamic and constant flow of information. Walmart is a good example of a supply chain. When a customer buys a product is has been in inventory at the warehouse, delivered by a truck by the manufacturer who deals with packaging and raw materials. Supply and demand is an economic model of price determination in a market. For example, in a competitive market, the unit price for a specific good will vary until it settles at a point where the quantity demanded by consumers, at current price, will equal the quantity supplied by producers, at current price. This results in economic equilibrium for price and quantity. The supply and demand is controlled by the demand of a product, which in turn creates supply. The model shows where the point determines prices and......

Words: 542 - Pages: 3

Summary

...Suzuki asserts that “we become so accustomed to clean food presented in plastic packages that we no longer think about where it comes from.” (308) In other words, this demonstrates that consumers are so focused on the perfectly sealed package that they lose sight of where food production originates from. He continues by saying that “organic grown food are treated and viewed differently compared to food that has added additives.”(308) Ironically, he ties the idea that “human control and management is considered normal due to labeling certain foods as organic.” (308) Next, he provide a clear example of how intolerant society has become to pesticides and hormone products despite possibility of damaging the physical environment. (308-309) In summary, Suzuki restates that society has changed drastically and consumers are paying a huge price because they can no longer relate to the importance of how food and land are interconnected....

Words: 481 - Pages: 2

Summary

...Kindria Cheatum 12/26/2014 Sociology 201 Winter 2014 Staking Out a Place in a House Divided Summary The article is basically about how divorce affects children home lifestyle changes and their transition into different home. In the article it describes the living arrangement of Courtney Seale who lives with her mother for two weeks, then with her father for another two weeks. Because her parents are divorce and as stated in the article by Courtney ''It's like going away on vacation for two weeks and then having to unpack.'' Courtney parents like most parents wants her to transition easily into her new lifestyle. Than it tells about Courtney's friend Jacinthe Sasson-Yenor who has a more complex living arrangement with her parents because one lives in luxury and the other doesn’t. When it’s a school day she stays with her mother in her New Jersey loft, and on weekends she stays with her father in his 1861 farmhouse. Although every other Saturday, she spends the day with her mother not allowing much time with her father like most children experience from divorced parents. Also, the article discusses how divorce is difficult and how it's by no means comfortable for children moving from house to house. It tells of how Courtney parents share joint custody and how they try to make it more comfortable. The article describes the children’s bedrooms and how each show different stages in life from the other for example it stated “Jacinthe's two rooms reflect different stages in her......

Words: 327 - Pages: 2

Summary

...Summary & Response Essay Instructions For this assignment, you will read three articles about the topic of child obesity. The first article is called “Childhood Obesity.” It is located on p. 102-110 of your textbook. The second article is also called “Childhood Obesity,” but that one is written by Dulcie McBride. You will find the third article yourself, and you must submit it to me for approval. In the first paragraph, you will summarize the topic, and the last sentence of your first paragraph will be your thesis statement. Your thesis statement should include both the overall idea of your essay and the specific points that you want to address, in the order that you address them. Pretend that you are writing an essay where you state that UC is the best college because it has a lot of people, it has great professors, and it has good transportation. Your thesis statement might look like this: UC is one of the best colleges in the U.S. because of the size of its student population, the quality of its professors, and the extent of its internal transportation network. In that example, the general idea has been stated, and the three main points of the body have also been stated. This prepares the readers. After reading this, they know what to expect. Think of the first paragraph as a formal summary of the three articles. After you summarize them, you will state your opinions about the common topic that they address (childhood obesity). In academic......

Words: 632 - Pages: 3

Summary

...Summary of Online Degrees Could Be a Good Fit for Some In the article Online Degrees Could Be a Good Fit for Some Teens Briana Boyington is portraying that there is no correct type of college. There are different options for a different variety of learners and their different circumstances; whether it be a job, financial instability, or a student just needs relief from classroom learning. These options include four year universities, community colleges, and online degree programs. There are positives and negatives for every option. A few negatives for online degree programs is students lose some of the social interactions with other students and faculty that occur when attending school on campus. Employers are sometimes weary of hiring students that only have an online degree, campuses that offer both online and in class learning are looked at more highly. It is made clear in this article that online learning is a robust choice for a student who is self-determined, not likely a successful path for a student who has struggled in the classroom. When graduating high school online degree programs aren’t typically broadcasted, or encouraged. Most teenagers are set on living the college life so to speak. Boyington suggests that even though online learning is not the typical pathway, it could be a great path to success for many students who can’t go away to college as initially planned. A good online school would be one that inspires students to interact and get as close to......

Words: 280 - Pages: 2

Summary

...SUMMARY TEAM A University of Phoenix CJA 484 Dwayne Carr May 4, 2015 SUMMARY What did you find that was really useful, or that challenged your thinking? During this weeks reading and research in class I found it profoundly difficult to completely comprehend the fiscal demands part of correctional institutions as my concentration is on human services not finance. However, keeping fiscal budget demand in mind when implementing policy can be important as the world does revolve around money. Without proper budgeting the correctional institution would not have any programs for inmate’s to get help or education. The most important thing to remember is the safety of the prison staff must come first when implementing policy change. Furthermore the development of technology use like RFID tag to track inmate sin prison can eliminate investigation time and save money in the long run. The only issue seems to be is the initial cost of the devices outweighs the money saving. Inmates however will most likely tell the truth knowing they are being tracked it is almost like having a good working camera sin every area of the prions without the constant monitoring or mess-ups of film. Was there anything that you've already taken and applied in your workplace? Working security requires the use of some of the latest technological advancements. While it is not necessarily in a corrections environment, the use of technology is still paramount to the effectiveness of our tasks....

Words: 532 - Pages: 3

Summary

...Summary 1. A summary is a clear concise orderly retelling of the contents of a text and is ordinarily about 1/3 or 1/4 as long as the original. To make a summary you should: a) write out clearly in your own words the main points of the text, subordinating or eliminating minor points; b) preserve the proportion of the original; c) change direct narration to indirect, use words instead of word combinations and word combinations instead of sentences; d) omit figures of speech, repetitions and most examples; e) use proper names instead of personal pronouns; f) don’t introduce any extra material by way of opinion, interpretation or appreciation. 2. Words and phrases suitable for a summary: a) At the beginning of the story the author describes (depicts, dwells on, touches upon, explains, introduces, mentions, recalls, characterizes, criticizes, analyses, comments on, enumerates, points out, generalizes, makes a few critical remarks, reveals, exposes, accuses, blames, condemns, mocks at, ridicules, praises, sympathizes with, gives a summary of, gives his account of, makes an excursus into, digresses from the subject to describe the scenery, etc.); b) The story (the author) begins with a/the description of (the mention of, the analysis of, a/the comment on, a review of, an accounts of, a summary of, the characterization of, his opinion of, his recollection of, the enumeration of, the criticism of, some/a few critical remarks about, the accusation of,......

Words: 455 - Pages: 2

Summary

...Executive Summary Nepal E Market (www.nepalemarket.com) Nepal E Market was founded in 2014 and its main concept is to sell Nepali handicrafts and ritual products in the USA. This is total ecommerce website with no retail location. Business Service Nepal E Market is all about selling various handicrafts & products related to Nepali rituals, festivals & ceremonies that are rare in the USA. Presently, Nepali handicrafts are very popular in the whole world. Nepali as well as local crowd in USA loves them. It competes primarily based on quality and their traditional designs. Ornamental design, Thanka paintings, traditional dress, food and spices will be our main focus in the website. Our future plans include selling Indian garments, traditional sculptures and much more important ritual products in two to three years. The Market We define our market as eCommerce site, focused to make various Nepali products available to the Nepalese people living in the USA. The total market size is approximately $40,000 last, and is expected to grow by 50% by 2017. Some of our most notable customers include Nepalese community people as well as local people who love antique handicrafts and traditional products. Competition We compete directly with local Nepali and Indian grocery stores and specially www.nepalibazaar.com. Our website is unique/superior because we have variety of typical Nepalese handicrafts, thanka paintings and traditional dresses. We have a competitive......

Words: 460 - Pages: 2

Summary

...Alphabetic Index and Tabular List Memo Isaak, Shiboyan 201 1/30/2016 HCR Alphabetic Index and Tabular List Memo In this summary I will like to illustrate to very important topics which are “Tabular index & Tabular list memo”. This two will be mentioned and discussed with detail of their foundation and what they mean. I also like to state the fact on what problems might occur if proper coding is not used by those who are in charge of it. The ICD-10 is split into alphabetic index & tabular list. Alphabetic index’s which provides an index’s of disease descriptions in alphabetical list of terms and their corresponding codes. The alphabetic index’s consists of parts which are: indexes of disease & injury, external causes of injury, table of drugs, table of neoplasms & chemicals. The tabular list is a structured list of codes divided into chapters based on conditions & body systems. Tabular list consists of categories, subcategories and codes and when many times a specified code is not available for a condition then it is put through tabular list for the code to be specified. Tabular list descriptions are listed in more than one manner as well as made up of 21 chapters of disease, description and their codes. The first part Alphabetic index’s use and purpose is to organize the list of indexes of disease descriptions in alphabetical list of terms and their corresponding codes plus helps the medical staff member better locate the description matching the......

Words: 451 - Pages: 2

Summary

...Summary…………………………………………………3 Company Background………………………………………………3 Vision………………………………………………………………..4 Value Statements……………………………………………………5 Mission Statement…………………………………………………..7 Generic Strategy…………………………………………………….7 Grand Strategies…………………………………………………….7 Long Term Objectives………………………………………………8 Shot Term Objectives……………………………………………...10 Contingency Plans…………………………………………………10 Critical to Success Factors…………………………………………11 Environmental Scan and Summary………………………………..12 Internal Analysis…………………………………………………...13 External Analysis…………………………………………………..14 Value Chain Analysis……………………………………………...16 SWOT Analysis……………………………………………………20 Resource Based Analysis…………………………………………..21 PEST Analysis……………………………………………………..22 Conclusion…………………………………………………………25 List of Appendixes………………………………………………...26 References…………………………………………………………27 Executive Summary This paper examines the current state of the organization, Kudler Fine Foods (KFF) by considering its background, financial status, operations, original and future vision and mission statements as stated by the owner, Kathy Kudler. It expands upon the owner’s desire to continue growth by creating and suggesting a new vision for the organization that continues to build on the organization’s original set of values and mission. The internal and external environments are examines. A new generic strategy and new grand strategies are presented and supported by long and short term objectives, and contingency plans and critical......

Words: 4920 - Pages: 20

Summary

...Strayer University | Summary | “Farm Girl” | | Alli Brown | 4/19/2012 | | This is a summary of Jessica Hemauer’s “Farm Girl.” This was a narrative essay where the writer, Jessica Hemauer, talks about her childhood growing up on a farm. I believe that the audience for this essay was more than likely a teacher or professor. The tone was not set for the essay as a whole. Depending on the part you were reading in the essay, the tone goes through many different emotions from angry to respectful and patient to sad and depressed then to happy. My emotional response to this essay was that growing up on a farm must be very hard on children. I felt bad that she and her brother and sisters had to get up so early to do chores around the farm, while other children their age were still soundly sleeping in their warm, cozy beds without a thought of waking up anytime soon. There are many points of this essay that stuck out to me personally, however, the main point was very clear; that growing up on a farm was very difficult as a child but, made her a more mature, responsible and strong willed adult. Jessica and her brother and sisters had a very strict, time sensitive routine every morning before school in order to get all the various chores and jobs done as well as shower, get dressed, eat breakfast and make it to the bus for school. The farm had to come first before anything else; it was the entire family’s first priority. The children had to face harsh weather......

Words: 539 - Pages: 3