Write a four to five (4-5)
page paper in which you:
1. Explain the Securities and Exchange Commission’s
rationale to charge Cardillo executives with each of the following violations:
a. making false representations to outside auditors
b. failing to maintain accurate financial records
c. failing to file prompt financial reports with the
SEC
d. violating the insider trading provisions of the
federal securities laws
2. Determine who study was in violation or
compliance of the AICPA’s Code of Professional Conduct in this case and analyze
the key reasons why they were or were not in compliance. Provide support for
the rationale.
3. Analyze the actions taken by Cardillo’s outside
auditors and evaluate the level of efficiency of the audit risk management in
this case study. Provide support for the rationale.
4. Determine whether or not the five (5) components
of internal control were being followed. Support the response with at least two
(2) examples.
5. Create an argument for or against whether
auditors have a responsibility to assess the judgment of the decisions made by
Cardillo’s management. Support the argument.
6. Use at least two (2) quality academic resources
in this assignment. Note: Wikipedia and similar type Websites do not qualify as
academic resources.
Your assignment must follow
these formatting requirements:
· Be typed, double spaced, using Times New Roman font
(size 12), with one-inch margins on all sides; citations and references must
follow APA or school-specific format. Check with your professor for any
additional instructions.
· Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in the required
assignment page length.
The specific course learning
outcomes associated with this assignment are:
· Analyze the process and regulatory requirements for
professional ethical decision making.
· Analyze the critical factors of business, audit,
and planning risks, and the process of managing these risks in audit
engagements.
· Analyze an audit framework and assessment process
for evaluating the effectiveness of internal controls related to financial
reporting.
· Use technology and information resources to
research issues in auditing.
· Write clearly and concisely about auditing using
proper writing mechanics.
