What are the auditors’ obligations with respect to accounting estimates and judgements made by management? Explain any concerns that should have existed about these areas of the audit.

Description

Utilizing the attached Case 5-7 Diamond Foods Case and Fraud Tringle, AND Utilizing 15 scholarly, peer-reviewed journal articles from the most recent five years (2016 -2021) AND Utilizing 5 other journal articles from the most recent five years (2016-2021):

Write a 15-page paper based upon the instructions below and in the following format utilizing Time New Roman and Size 12 font and full APA -7th Edition format.

Include an abstract, but a table of contents is not required.

Paper One Assignment

Abstract

Pages 1 and 2

Introduction of the paper and case overview

Page 3

Research summary related to business/audit risk

Pages 4 and 5

Research summary related to fraud prevention/corporate

governance

Page 6

Case 5-7 question one response

-Use the Fraud Triangle to analyze the business and audit risks that existed at Diamond Foods during the period of its accounting fraud.

Pages 7 and 8

Research summary related to auditor obligations

Pages 9 and 10

Case 5-7 question two response

– How would you characterize Diamond’s accounting?

– Did they commit an error in recording walnut grower payments?

– Was it an illegal act?

– Was it a fraudulent act?

– For each one, explain the reporting requirements for Deloitte assuming they were aware of the transactions.

Page 11

-Case 5-7 question three response

-What are the auditors’ obligations with respect to accounting estimates and judgements made by management?

-Explain any concerns that should have existed about these areas of the audit.

-Assume that Deloitte was aware of these issues – wouldany of them rise to the level of a critical audit matter? Explain.

Pages 12 – 13

Research summary related to the role of financial analysts

Page 14

Case 5-7 question four response

-Do you think non-GAAP information, such as that provided to financial analysts, should be audited?

-Consider the value of such information to the users of financial reports in answering this question.

Page 15

-Conclusion

Textbook for Case 5-2

Higgins, R.C., Koski, J.L., & Mitton T. (2021). Analysis for financial management (Twelfth).

New York, NY: McGraw-Hill Education.

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