Week 4 Assignment – Case Study on Audit and Internal Control In the United States, the management and auditors of publicly held companies must evaluate their internal controls annually. The purpose of the evaluation is to look for any control deficiencies. Doing so will help avoid any penalties such as the $10.5 million that the […]
What effect did the fact that the written record did not disclose all characteristics of the transaction probably have on the auditor’s ability to evaluate the accounting treatment of this transaction?
CASE: During the summer of 2002, the financial press reported that Citigroup was being investigated for allegations that it had arranged transactions for Enron so as to intentionally misrepresent the nature of the transactions and consequently achieve favorable balance sheet treatment. Essentially, the deals were structured to make it appear that money was coming into […]
Discuss the wisdom of having financial institutions that are recognized as ‘too big to fail’ and the moral hazard they present to the economy at large.
The commercial banking structure in the US has changed a great deal in the past 30 years. Today the market structure of banking is that of a small set of globally huge banking behemoths (Citigroup, Bank of America, Wells Fargo, JP/Chase, etc) and a much larger set of much smaller banks. ] The big banks […]