We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Fraud And Errors of the Companys Financial Statement - Case Study Example

Comments (0)
Summary
This paper "Fraud And Errors of the Company’s Financial Statement" focuses on audit risk - the risk that the auditor expresses an inappropriate opinion because of intentional miscalculations like fraud and errors of the company’s financial statement. Identifying and assessing this risk is crucial in the audit process. …
Download full paper
GRAB THE BEST PAPER
Fraud And Errors of the Companys Financial Statement
Read TextPreview

Extract of sample
Fraud And Errors of the Companys Financial Statement

Download file to see previous pages... Finally, the detection risk which analyses the risk that auditors’ procedures would fail to detect a material error (Hall, 2013, pp. 691).
Accsys Technology PLC is a chemical technology group quoted on the Alternative Investment Market (AIM) on the UK stock exchange. It develops and commercialises a range of transformational technologies that are based on the acetylating of wooden elements, such as particles, wood chips and fibres, and solid use for us as a leading, environmentally sustainable, construction materials. Analysis of the company’s most recent financial statements indicates some anomalies that need further investigations. These areas include revenue, gross profits, and remuneration whose balances show a large positive difference in 2014 as compared to 2013.
Material misstatements in the financial statements are often as a result of an overstatement or understatement of revenues. It is crucial for auditors to presume that there are risks in revenue recognition. From the quantitative analysis (Appendix 1) it is clear that the company’s total revenue had materially increased by 78% in 2014 as compared to that reported in the year 2013. According to the financial director, the increase had been attributed to a 61% increase in Acoya revenue because of an increase in sales to Medite. This increase in sales to Medite is because the company had finished its built up stock which it was still utilizing earlier. There was also an increase in license income from Solvay and other revenues such as the sale of acetic acid. According to the financial statements, the increase in total revenue was as a result of an increase in revenues in the UK and Ireland by 183.70% (Appendix 2). This was further explained by an increase in revenue generated from one customer who represented 43% of this revenue and exceeded 10% of the group’s revenue. This area creates an audit risk because in 2013 the revenue generated from a customer did not exceed 10% of the Group’s revenue.   ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Fraud, Errors and Illegal Acts
The author states that the auditors are required to perform many functions such as to collect information that supports to identify the attempted fraud/risk of fraud; to examine the risk of fraud after an evaluation of enterprise’s existing controls, the absence of controls, ineffective controls and overriding of controls by the management.
5 Pages(1250 words)Term Paper
Financial Statement Fraud Schemes
Currently the company is in a process of expanding the products it offers by making different types of shoes that meet different markets demands. For example the company is in the process of manufacturing PHONESHOES that are specifically designed for helping business executives to carry out their operation more efficiently and effectively (Timothy, Loretta, & Kenneth, 2011).
4 Pages(1000 words)Essay
Financial Statement Fraud Investigations
The author states that the company’s accounting policy recognized sales returns by crediting the respective amount and at the same time it also counted it as inventory. The inventories were shared between the various stores of the company to boost sales. Various external vendors were arranged to ship merchandises of the company claiming fake discounts.
4 Pages(1000 words)Essay
Financial Statement Fraud
The author states that the motivating factors for the management’s engagement in revenue recognition fraud may be due to a weak season where the organization predicts unimpressive financial prospects. In addition, unscrupulous management systems could get involved in outright revenue recognition fraud.
3 Pages(750 words)Essay
Financial Statement Fraud and Revenue Recognition Fraud
The author of the paper states that financial fraud demeans investor confidence in financial reporting and lowers the efficiency of corporate governance. A financial statement fraud refers to an intentional misrepresentation of financial information that the corporation presents to the public.
4 Pages(1000 words)Essay
Personal development plan
Stephen R Covey in his book Seven Habits of Highly Effective People suggests that to start the process of self improvement one should write down how he or she would like to be remembered after their death and then work to achieve that ideal.
7 Pages(1750 words)Essay
Audit framework
Financial statement audit is an audit conducted to determine whether the overall financial statements of an entity are stated in accordance with
20 Pages(5000 words)Essay
Financial Reporting Fraud

The author provides the following accounting principle. The matching principle requires firms to apply the accrual basis of accounting where expenses are matched with revenues. For example, the wages of an employee should be reported in the week that the employee worked and not when the employee was paid.

 

4 Pages(1000 words)Essay
THE REAL VALUE OF INTELLECTUAL CAPITAL AND HOW IT IS INCLUDED IN A COMPANYS FINANCIAL STATEMENT
Before I can make an analysis of the intellectual capital for Microsoft Inc., there are some crucial factors that need to be put forward. It is very imperative to point out that intellectual capital is nothing but a combination of skills,
7 Pages(1750 words)Essay
The Bicycle sharing system in Los Angeles
As the issue of pollution becomes continuously contentious, many scholars assert that significant pollution started taking place after the industrial Revolution of the 18th century. While this holds some truths, the ostensible fact that pollution has been a serious problem for human beings from earlier periods is horrendous.
10 Pages(2500 words)Essay
Let us find you another Case Study on topic Fraud And Errors of the Companys Financial Statement for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us