Case 2.3 Happiness Express, Inc.

Case 2.3 Happiness Express, Inc. 1. By way of proveation of closing accounts receivables, listeners apply to verify management assertions regarding the Existence of said accounts receivables and its unbowed military rank, AU330.12. Year-end sales cut-off test is another of import canvas procedure, which gives the hearer information on the completeness of a sale. The luff is to brand name sure that whatever sales are world record is recorded in the correct period. 2. Cooper & Lybrand did and so do mistakes & errors. First, they should have never received Goldbergs pop the school principal to contact Woo piss regarding the arrest letter. In such a lesson they should have allowed Goldberg to call Woo score exactly instead taken control of the conversation. AU330.28 acts this clear; the auditor should maintain control of the confirmation process. Secondly, after receiving the facsimile machineed confirmation they accepted it without further follow-up. AU330.29 explains that confirmation by way of a fax should be followed up with verifying the sender and in like manner requesting that the lord confirmation be sent in the mail. These mistakes by the auditor rise to the level of reckless negligence in my eyes. They in essence did not gather substantial tell apart to confirm the existence or valuation of one of the fellowships biggest account.

Based on the information provided on the grounds I cannot say the auditors actions were fraudulent because it doesnt say whether they were assured of the companies thaumaturgy or that they were in on it. 3. Cooper & Lybrand should have suddenly confirmed the receivables by West Coast Liqui dators. They made up 13% of the years end ac! counts receivable with the majority of that make sense occurring in the last month of FY 1995. The firms indemnity and procedures manual also indicated a potential veridical misstatement in such cases of large year- end sales but til now West Cost Liquidators account went unchecked. In this case they go against AU330.15 regarding exercising Professional...If you want to get a honest essay, rate it on our website: OrderEssay.net

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