Identify and briefly explain each of the principal objectives that auditors hope to accomplish by preparing audit workpapers. How were these objectives undermined by Deloitte’s decision to alter North Face’s 1997 workpapers?Explain

 

The Task: Based on a The North Face, Inc. case write a case study-report that answers the following questions:

1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements?

2. Should auditors take explicit measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements? Would it be feasible for auditors to conceal this information from their audit clients?

3. Identify and briefly explain each of the principal objectives that auditors hope to accomplish by preparing audit workpapers. How were these objectives undermined by Deloitte’s decision to alter North Face’s 1997 workpapers?

4. North Face’s management teams were criticized for strategic blunders that they made over the course of the company’s history. Do auditors have a responsibility to assess the quality of the key decisions made by client executives?

 

-You are expected to support your work with sources from the literature and use Harvard referencing style as appropriate, in text and in the list of references at the end of your assignment. -Primary Marking Criteria:

• Comprehensive knowledge

• Detailed understanding of the subject area

• Extensive background study • Highly focussed answer and well structured

• Logically presented and defended arguments

• No factual/computational errors

• Original interpretation

• New links between topics are developed

• New approach to a problem • Excellent presentation with very accurate communication

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