From the "Sino-Forest Fraud" and identify and describe in detail two auditing standards that Ernst and...

From the "Sino-Forest Fraud" and identify and describe in detail two auditing standards that Ernst and Young, LLP auditors failed to apply. Why do you think the auditors didn't apply these standards

Expert Solution

SINO FOREST

EY’s audit report recognized in audit plan that there was high inherent risk of misstatement regarding Sino forest’s assets. The main procedures involved physical observation of sites, gathering evidences and obtaining legal opinions.

Sino Forest’s main assets were scattered through china. EY was very limited site visit. So main issues are:

1. INTERNAL CONTROLS: In the Financial Statements in Management Disclosure as part of its “Disclosure Control procedures and internal control over financial reporting. The Success of the Company’s vision depends on senior management. Such senior management was responsible for maintain relations with customers, negotiation. Now here concentration of authority, lack of segregation of duties, create risk in measurement and completeness of transactions. auditors do not see how the internal control and applying appropriate standards.

2. Fraud was not detected correctly, as proper measurement was not taken in financial statements overstating revenue by creating falsely sale. Auditors do not take sufficient appropriate audit evidence.

3. There was falsely purchase contracts but auditors does not identify that.

ekkarill92 answered 1 year ago

fraud auditing and IT auditing. 1-Describe the different kinds of fraud andthe Fraud Triangle, an auditor's...

fraud auditing and IT auditing. 1-Describe the different kinds of fraud andthe Fraud Triangle, an auditor's responsibility to identify and assess fraud. 2-Describe the specific risks, benefits, and internal controls associated with IT functions.

Describe evidence requirements of auditing standards

Auditing standards note that three conditions are generally presented when fraud occurs. Research the authoritative standards...

Auditing standards note that three conditions are generally presented when fraud occurs. Research the authoritative standards for auditors and provide a brief summary of each of the three fraud conditions. Additionally, provide an example from the Comptronix fraud of each of the three fraud conditions.

Professional auditing standards require auditors to consider “Fraud Risks”. There are three key conditions that are...

Professional auditing standards require auditors to consider “Fraud Risks”. There are three key conditions that are typically present when a financial fraud occurs. Please discuss the meaning of Fraud risks, the conditions, and examples for each of these conditions. Provide references to the applicable auditing standards that support your submission.

Write a 750- to 1,050-word paper on fraud auditing and IT auditing. Describe the different kinds...

Write a 750- to 1,050-word paper on fraud auditing and IT auditing. Describe the different kinds of fraud and the Fraud Triangle, an auditor's responsibility to identify and assess fraud. Describe the specific risks, benefits, and internal controls associated with IT functions.

List and describe the ten generally accepted auditing standards?

Provide a well detailed answer!! what is the auditor’s responsibility under auditing standards for detecting fraud.

Describe the role, nature and importance of international standards on internal auditing.

Define fraud and internal control in detail. Identify the principles of internal control and define them....

Define fraud and internal control in detail. Identify the principles of internal control and define them. Give suitable examples

1. Create a scenario in which a company conceals financial fraud from the auditing firm through...

1. Create a scenario in which a company conceals financial fraud from the auditing firm through the use of information technology. Next, suggest at least one (1) way in which an auditing firm can minimize its exposure to this risk. 2. Select a balance sheet account or income statement account, and discuss the type of audit procedure that would produce the most reliable evidence for that account balance.

Question