Case 1-1-1

Case 2.7 Campbell Soup Company 2. Suppose that a reside affairs one or more of the practices that you identified in responding to the previous(prenominal) question. What implications, if any, do those practices hit for the companys independent auditors? by and large Accepted method of account statement Principles, GAAP, allow clams management where the goal is to maximize moolah that benefit the organization as opposed to earnings use of goods and services provoked to commit fraud than the control conference by pressures tied to economic cycles, equity issuance, and achievement. Manipulating earnings is unremarkably admonitory for the organization and for the auditors as well. Incentives and/or pressures for earnings use of goods and services are un authenticistic economic goals, bonus and incentives that trigger cupidity and wrong issues. The implications for independent auditors are: 1) Companies pose a higher(prenominal) risk of exposure 2) More testing would be take 3) Auditors may be allowed to charge a premium tap 4) Auditors re sitation could be at stake 5) Adjustments required reflecting real earnings may become more complex and subjecting to however discussion with management. 3. What auditing standard, of any, requires auditors to repair whether their clients have properly categorize fall upon amounts in their biweekly income statements?

Identify three methods that audit clients tolerate use to put a favorable spin on their reported operate results without changing their bottom line or net income. AU 411, The Meaning of Present Fairly in Conformity Wi th Generally Accepted Accounting Principles:! 411.04 says, The auditors opinion that financial statements present somewhat an entitys financial position, results of operations ... as to whether (a) the accounting principles selected and applied have general acceptance ... (d) the information presented in the financial statements is classified and summarized in a reasonable manner, that is, neither too precise nor too condensed (see section 431) ... AU 508, Reports on Audited Financial...If you want to take up a full essay, rule it on our website: BestEssayCheap.com

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