Phar mor inc accounting fraud litigation and auditor liability

Some of its stores used the names Pharmhouse and Rx Place purchased in the mids from the F.

Phar mor inc accounting fraud litigation and auditor liability

Features For undergraduate and graduate Auditing courses. Most of the cases are based on actual companies, and a number address financial reporting fraud.

Phar mor inc accounting fraud litigation and auditor liability

What do you do in your course to introduce and stress the new auditing standards issued by the Publica Company Accounting Oversight Board? Select only the chapters you require or supplement with recommended case studies all under one cover.

New to this Edition The cases are now organized according to key phases and aspects of an audit, including specific sections on ethics and fraud. Some of the cases are comprehensive; however most are designed to specifically target a particular area e.

All are carefully designed to enhance interactive learning in the classroom while making preparation by the instructor as quick and simple as possible. The 3rd edition also includes four new cases: The case provides an approach to follow should they become aware of potential unethical or illegal actions and illustrates key characteristics of an effective whistleblower program.

The case is comprised of two parts that can be assigned independently. In Part A students are introduced to the quantitative and qualitative factors that must be addressed when deciding which locations and accounts will be tested to achieve a high level of assurance with respect to the design and operating effectiveness of controls over financial reporting.

In Part B, students are introduced to the considerations and steps used by auditors to evaluate the likelihood and magnitude of possible misstatement for the various levels of internal control deficiency. Students then get hands-on experience evaluating deficiencies using the framework.

Students conduct audit procedures, tying numbers from client documents to bank statements and reconciliations. Errors are seeded into the case, and one of the bank confirmations is a smudged, blurry faxed copy.

The instructor notes include a copy of the actual forged Bank of America confirmation used by Parmalat to mislead its auditors to bring the importance of care in the evaluation of audit evidence home to students in a vivid and memorable way.

Auditing Cases: An Interactive Learning Approach, 6th Edition

The case solution reveals that this hypothetical company actually is a disguised real company fraud case investigated by the SEC. The SEC ultimately charged the actual company for fraud, including charges filed against the vice president of sales. This emphasizes the importance for senior management to understand key revenue recognition criteria, including management outside traditional financial reporting responsibilities.

All cases have been updated to reflect the changes in the profession, standards, and the regulatory environment.Table of conTensT ii InsTrucTor resource Manual — Do noT copy or reDIsTrIbuTe Cases inCluded in this seCtion secTIon 4 accounting fraud and auditor legal liability Enron Corporation and Andersen, LLP Analyzing the Fall of Two Giants.

Phar-Mor Case Study Phar-Mor Case Questions 1. a) By hiring a member of its external audit team a company could gain insight into the auditor’s process and better devise methods of hiding fraud.

Phar Mor Essay example. A View of an Accounting Fraud and Litigation from Inside the Courtroom What the Jury Heard in the Phar­Mor Case 1 In the Phar‐Mor case, several members of top management confessed to, and were convicted of, financial statement fraud.

Auditing Cases 4/e provides 44 auditing cases focusing on each of the major activities performed during an of the cases are based on actual companies, and a number address financial reporting fraud. The cases are designed to engage the reader through the use of lively narrative and the introduction of emerging issues.

Recognizing it's a fraud and evaluating what to do 6. Phar-Mor Inc. Accounting fraud, litigation, and auditor liability 7. Enron Corporation and Andersen, LLP Analyzing the fall of two giants 8. The Runners Shop Litigation support review of audit documentation for notes payable 9.

Dell Computer Corporation Evaluation of client business risk SEVENTH EDITION An Interactive Learning Approach Mark S.

Beasley Frank A. Buckless Steven M. Glover Douglas F. Prawitt Auditing Cases New York, NY.

Case Phar-Mor Inc. - Murphyonpiracy