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Contemporary Auditing: Real Issues and Cases

Michael C. Knapp

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Abstract

Preface. 1. Comprehensive Cases. Enron Corporation. Lehman Brothers Holdings Inc. Just for FEET, Inc. Health Management, Inc. The Leslie Fay Companies. NextCard, Inc. Lincoln Savings and Loan Association. Crazy Eddie, Inc. ZZZZ Best Company, Inc. DHB Industries, Inc. New Century Financial Corporation. Madoff Securities. AA Capital Partners, Inc. Navistar International Corporation. Livent, Inc. 2. Audits of High-Risk Accounts. Jack Greenberg, Inc. Golden Bear Golf, Inc. Take-Two Interactive Software, Inc. General Motors Company. Lipper Holdings, LLC. CBI Holding Company, Inc. Geo Securities, Inc. Belot Enterprises. Powder River Petroleum International, Inc. LocatePlus Holdings Corporation. 3. Internal Control Issues. The Trolley Dodgers. Howard Street Jewelers, Inc. United Way of America. First Keystone Bank. Goodner Brothers, Inc. Buranello's Ristorante. Foamex International Inc. The Boeing Company. Wal-Mart de Mexico. 4. Ethical Responsibilities of Accountants. Creve Couer Pizza, Inc. F&C International, Inc. Suzette Washington, Accounting Major. Freescale Semiconductor, Inc. Wiley Jackson, Accounting Major. Arvel Smart, Accounting Major. David Quinn, Tax Accountant. Dell Inc. AccuHealth, Inc. Wichita Falls. 5. Ethical Responsibilities of Independent Auditors. Cardillo Travel Systems, Inc. American International Group, Inc. The North Face, Inc. IPOC International Growth Fund, Ltd. Phillips Petroleum Company. Ryden Trucking, Inc. Richard Grimes, Staff Accountant. 6. Professional Roles. Leigh Ann Walker, Staff Accountant. Bill DeBurger, In-Charge Accountant. Hamilton Wong, In-Charge Accountant. Tommy O'Connell, Audit Senior. Avis Love, Staff Accountant. Charles Tollison, Audit Manager. 7. Professional Issues. Ligand Pharmaceuticals. Sarah Russell, Staff Accountant. Bud Carriker, Audit Senior. Hopkins v. Price Waterhouse. Fred Stern & Company, Inc. (Ultramares Corporation v. Touche et al.). First Securities Company of Chicago (Ernst & Ernst v. Hochfelder et al.). Elizabeth Wallace, Audit Senior. Frank Coleman, Staff Accountant. Olivia Thomas, Audit Senior. 8. International Cases. Longtop Financial Technologies Limited. Kaset Thai Sugar Company. Republic of Somalia. Republic of the Sudan. Shari'a. Mohamed Salem El-Hadad, Internal Auditor. Tae Kwang Vina.

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Preface. 1. Comprehensive Cases. Enron Corporation. Lehman Brothers Holdings Inc. Just for FEET, Inc. Health Management, Inc. The Leslie Fay Companies. NextCard, Inc. Lincoln Savings and Loan Association. Crazy Eddie, Inc. ZZZZ Best Company, Inc. DHB Industries, Inc. New Century Financial Corporation. Madoff Securities. AA Capital Partners, Inc. Navistar International Corporation. Livent, Inc. 2. Audits of High-Risk Accounts. Jack Greenberg, Inc. Golden Bear Golf, Inc. Take-Two Interactive Software, Inc. General Motors Company. Lipper Holdings, LLC. CBI Holding Company, Inc. Geo Securities, Inc. Belot Enterprises. Powder River Petroleum International, Inc. LocatePlus Holdings Corporation. 3. Internal Control Issues. The Trolley Dodgers. Howard Street Jewelers, Inc. United Way of America. First Keystone Bank. Goodner Brothers, Inc. Buranello's Ristorante. Foamex International Inc. The Boeing Company. Wal-Mart de Mexico. 4. Ethical Responsibilities of Accountants. Creve Couer Pizza, Inc. F&C International, Inc. Suzette Washington, Accounting Major. Freescale Semiconductor, Inc. Wiley Jackson, Accounting Major. Arvel Smart, Accounting Major. David Quinn, Tax Accountant. Dell Inc. AccuHealth, Inc. Wichita Falls. 5. Ethical Responsibilities of Independent Auditors. Cardillo Travel Systems, Inc. American International Group, Inc. The North Face, Inc. IPOC International Growth Fund, Ltd. Phillips Petroleum Company. Ryden Trucking, Inc. Richard Grimes, Staff Accountant. 6. Professional Roles. Leigh Ann Walker, Staff Accountant. Bill DeBurger, In-Charge Accountant. Hamilton Wong, In-Charge Accountant. Tommy O'Connell, Audit Senior. Avis Love, Staff Accountant. Charles Tollison, Audit Manager. 7. Professional Issues. Ligand Pharmaceuticals. Sarah Russell, Staff Accountant. Bud Carriker, Audit Senior. Hopkins v. Price Waterhouse. Fred Stern & Company, Inc. (Ultramares Corporation v. Touche et al.). First Securities Company of Chicago (Ernst & Ernst v. Hochfelder et al.). Elizabeth Wallace, Audit Senior. Frank Coleman, Staff Accountant. Olivia Thomas, Audit Senior. 8. International Cases. Longtop Financial Technologies Limited. Kaset Thai Sugar Company. Republic of Somalia. Republic of the Sudan. Shari'a. Mohamed Salem El-Hadad, Internal Auditor. Tae Kwang Vina.

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Preface. 1. Comprehensive Cases. Enron Corporation. Lehman Brothers Holdings Inc. Just for FEET, Inc. Health Management, Inc. The Leslie Fay Companies. NextCard, Inc. Lincoln Savings and Loan Association. Crazy Eddie, Inc. ZZZZ Best Company, Inc. DHB Industries, Inc. New Century Financial Corporation. Madoff Securities. AA Capital Partners, Inc. Navistar International Corporation. Livent, Inc. 2. Audits of High-Risk Accounts. Jack Greenberg, Inc. Golden Bear Golf, Inc. Take-Two Interactive Software, Inc. General Motors Company. Lipper Holdings, LLC. CBI Holding Company, Inc. Geo Securities, Inc. Belot Enterprises. Powder River Petroleum International, Inc. LocatePlus Holdings Corporation. 3. Internal Control Issues. The Trolley Dodgers. Howard Street Jewelers, Inc. United Way of America. First Keystone Bank. Goodner Brothers, Inc. Buranello's Ristorante. Foamex International Inc. The Boeing Company. Wal-Mart de Mexico. 4. Ethical Responsibilities of Accountants. Creve Couer Pizza, Inc. F&C International, Inc. Suzette Washington, Accounting Major. Freescale Semiconductor, Inc. Wiley Jackson, Accounting Major. Arvel Smart, Accounting Major. David Quinn, Tax Accountant. Dell Inc. AccuHealth, Inc. Wichita Falls. 5. Ethical Responsibilities of Independent Auditors. Cardillo Travel Systems, Inc. American International Group, Inc. The North Face, Inc. IPOC International Growth Fund, Ltd. Phillips Petroleum Company. Ryden Trucking, Inc. Richard Grimes, Staff Accountant. 6. Professional Roles. Leigh Ann Walker, Staff Accountant. Bill DeBurger, In-Charge Accountant. Hamilton Wong, In-Charge Accountant. Tommy O'Connell, Audit Senior. Avis Love, Staff Accountant. Charles Tollison, Audit Manager. 7. Professional Issues. Ligand Pharmaceuticals. Sarah Russell, Staff Accountant. Bud Carriker, Audit Senior. Hopkins v. Price Waterhouse. Fred Stern & Company, Inc. (Ultramares Corporation v. Touche et al.). First Securities Company of Chicago (Ernst & Ernst v. Hochfelder et al.). Elizabeth Wallace, Audit Senior. Frank Coleman, Staff Accountant. Olivia Thomas, Audit Senior. 8. International Cases. Longtop Financial Technologies Limited. Kaset Thai Sugar Company. Republic of Somalia. Republic of the Sudan. Shari'a. Mohamed Salem El-Hadad, Internal Auditor. Tae Kwang Vina.

Key concepts: Corporation, Audit, Management, Accounting, Subsidiary, Business, Engineering, Finance

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