Zzzz Best - 919 Words

Ernst amp; Whinney had an obligation to be independent, objective and with due care.Objectivity requires that an auditor should be skeptical and obtain independent evidence to verify information from the client. Ernst amp; Whinney failed to meet this obligation when they did not require corroboration of the insurance restoration contracts from independent third parties. When Ernst amp; Whinney resigned from the audit engagement,they had a professional obligation to disclose the reason for the withdrawal. Due care requires that an auditor discharges professional responsibilities with competence and diligence. It imposes the obligation to perform professional services to the best of the auditor’s ability with concern for the best†¦show more content†¦It imposes the obligation to perform professional services to the best of the auditor’s ability with concern for the best interest of the public. 1. I think that auditors should be held liable for failing to discover fraud. There are many ways the fraud could have been discovered over the years if the auditors performed an objective audit that followed rules and regulations. It is an auditor’s obligation to perform an audit with objectivity, skepticism, independence, and objectivity. Ernst amp; Whinney failed to meet these criteria. The auditors did not follow professional skepticism because when Minkow asked them to sign a confidentiality agreement to not follow up with any contractors, insurance companies, or building owners. This is not something to simply accept from Minkow. Ernst clearly did not perform a thorough audit and did not perform the necessary tests for reasonableness. 2. Ernst and Whinney should have seen a red flag from the start because there was an unreasonable growth in his company and he lived an extremely extravagant lifestyle. Minkow also had problems meeting his loan debt and there were many i nconsistencies in ZZZZ invoices. I think that the relationship between Ernst and ZZZZ did influence the risk assessment and the work done in the audit. Because Ernst did not want to lose ZZZZ as its biggest client, the work was not done objectively. There was a bias because Ernst wanted to keep the â€Å"wiz† of wallShow MoreRelatedZzzz Best987 Words   |  4 Pagesextending $ 7 million to ZZZZ Best Co. I agree with court’s decision because Ernst Whinney never issued an audit opinion on financial statements it was just a review report which was disclosed. However, I do not justify Ernst Whinney because the auditors besides from failure to notice ‘red flags’ had done few mistakes which lead to the law suit. The first mistake that the auditors made involved Mr. George Greenspan during the 1986 audit. This was the first audit since ZZZZ Best became a public companyRead MoreZzzz Best3065 Words   |  13 PagesCase 4-6 ZZZZ Best* The story of ZZZZ Best is one of greed and audaciousness. It is the story of a 15-year old boy from Reseda, California who was driven to be successful regardless of the costs. His name is Barry Minkow. Minkow had high hopes to make it big – to be a millionaire very early in life. He started a carpet cleaning business in the garage of his home. Minkow realized early on that he was not going to become a millionaire cleaning other people’s carpets. He had bigger plansRead MoreZzzz Best Case 1.9577 Words   |  3 Pages1. Ernst Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for the three months ended July 31, 1986. How does a review differ from an audit, particularly in terms of assurance implied by the auditor’s report? A review and an audit report are both a form of an attestation engagement. A Review, however, is less in scope so it provides a moderate level of assurance on the financial statements. It is consideredRead MoreZZZZ Best Company: The Backlash Essay845 Words   |  4 PagesCase 1.9 ZZZZ Best Company, Inc, 1. Ernst amp; Whinney audit firm suffered tremendously from the backlash of ZZZZ Best’s case. One of the issues stemming from ZZZZ Best’s case is the difference between a review and an audit as evidence by civil suit filed by a California bank against the firm. The bank claimed that its decision to grant ZZZZ Best’s loan was based on the opinion of Ernst amp; Whinney review of ZZZZ Best’s financial statements period ending July 31, 1986. The case was ruled in favorRead MoreEssay on ZZZZ Best Case: Questions801 Words   |  4 PagesACG 4632 ZZZZ Best Case Questions (40 points) 1. Identify the primary audit objectives that auditors hope to accomplish by: * Confirming a client’s year-end accounts receivable, and (Balance related existence) * Performing year-end sales cutoff tests. (transaction-related objective timing) (5 points) 2. Ernst amp; Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for the threeRead MoreAccounting Frauds: ZZZZ Best Company, Inc1022 Words   |  5 PagesZZZZ Best company is one of the biggest examples of Accounting Frauds. The founder of ZZZZ best was Barry Minkow. He was a very smart young entrepreneur when he started the company. He was involved in credit card forgeries prior to starting his own carpet cleaning business â€Å"ZZZZ Best Company†. Minkow began his business with small carpet cleaning jobs and he became a multimillionaire in a very short period of time. Minkow met a person named Tom Padgett at Los Angeles Health club. This was the beginningRead MoreZZZZ Best Company, Inc: An Analysis3666 Words   |  15 PagesZZZZ Best Company Inc. Introduction This paper explores the ZZZZ Best Company which was begun by a 16 year old individual who was able to pull the wool over the eyes of many customers, investors and auditors. This paper will define the difference between review and audit when it comes to financial reports, comments on the procedures provided with regard to the management assertion of occurrence, verification of payments for jobs and how they can lead auditors to improper conclusion, the purposeRead MoreZZZZ Best Case Study: Understanding Audit and Review1205 Words   |  5 Pagesresponses to inquiries by obtaining corroborating evidence through inspection, observation or any other audit procedure. It can point out significant matters of the financial statements but does not provide assurance of their accuracy. The issue with ZZZZ Best case is that the auditors review was not sufficient enough to review any misstatements on the financial statements. Ernst Whinney never questioned the internal control, reviewed contra ctual agreements or made comparison of the previous statementsRead MoreZZZZ Best Company Fraud: Case Study1772 Words   |  8 PagesZZZZ Best Company Fraud Case Study 1) At an early age, Barry Minkow was introduced to the carpet cleaning industry by his mother who worked part time as a telephone solicitor for a small carpet cleaning company. This insight of the industry allowed Minkow to understand that the carpet cleaning industry was one which had very few barriers to entry, no licensing requirements, and required only a small amount of capital to enter. Also, because of these few barriers to entry, the industry has historicallyRead MoreCase Analysis : Zzzz Best Company, Inc.1688 Words   |  7 Pages 1. Read Case 1.9, ZZZZ Best Company, Inc. in your text. Answer questions #1, 2, and 4 found at the end of the case. Question # 1 A review is like an audit yet is less in extension and just gives restricted affirmation with respect to the financial statements. This varies with an audit that gives sensible affirmation that no material mistakes or illicit acts are detected. The goal of an audit is to give a sensible freedom of expressed opinion the money related proclamations taken all in all. A

Importance of Criminal Justice Administration Free Essays

Class: Criminal Justice Administration Date: 9/10/2012 Importance of Criminal Justice Administration The role of a Criminal Justice Administrator is to manage a criminal justice system. She/ He direct the administration of the day-to-day operations, participates in administrative decision making, enforce policies and procedures, and sets work flow priorities. Criminal justice administrators also oversee agencies’ budget, policies and program requirements. We will write a custom essay sample on Importance of Criminal Justice Administration or any similar topic only for you Order Now Each public agency, according to its primary function, has a support team. The criminal justice administrator is in charge of supervising all agency staff; which can include lawyers, judicial clerks, secretaries, investigators and line officers. He/ She review and approve their reports, as it is his responsibility to make sure all information is accurate and prepared in accordance with established policy and procedure. The United States criminal justice system is a system that acts to enforce the criminal laws of the country. In the United States, the criminal justice system is divided in three categories: federal, state and military. In addition to these three categories, each state has separate divisions that deal with adult and juvenile cases. Each of these systems is comprised of three major components. The first component of the criminal justice system and perhaps the most important and dangerous is law enforcement. This includes the local police department with all of its police officers and detectives. These people head the criminal justice system because they are the ones responsible for finding and capturing individuals who break the laws set forth by the state, federal government or the military. The second component is the court; the court system includes prosecution and defense lawyers, judges and juries. These individuals make sure offenders are given fair trails. Judges, also known as finders of facts, hear the cases and preside over the participants to make sure that all laws are followed while the cases are being tried. Some cases are tried in front of a judge only, while others have a jury of 12 citizens who determine the guilt or innocence of a defendant based on facts brought forth during a trial. The last but not least is corrections. The correction system, which is tightly intertwined with the previous two components, is very important and quite large. The correction individuals ensure that a defendant’s punishment and all of its stipulations are carried out. Like any organization, state and local criminal justice agencies must deal with issues of organizational management and employ the management styles that best allow them to achieve their objectives of crime prevention, adjudication of criminal offenses, and punishment of offenders. In today’s world we have developed different styles of management that could apply to law enforcement agencies, criminal courts, and correctional facilities and departments. In my opinion managers are more important than supervisor because they have more responsibilities under their shoulders. Systems management requires a complete approach to organizational leadership, which involves not only management of personnel, but also of organizational knowledge. A systems approach to management recognizes the complexity of modern organizational processes. In this perspective, organizations function based on the information and data that employees can access. A successful agency must properly manage all of these elements. Features of systems management include specialization within components of a large system and coordination among different components. System management could serve criminal justice agencies well, and some organizations exhibit elements of this approach. For example, many large law enforcement organizations have specialized divisions, such as homicide, gang enforcement, vice, and others, but with cooperation among these different units. In general Criminal Justice Administration it is important because in order for law enforcement agencies to work properly a Criminal Justice Administrator needs to be in charge. Law enforcement agencies and organizations devoted to research in the field of criminal justice administration sometimes need professional researchers to perform ongoing work. Examples might include research into the most effective ways to run criminal justice agencies and how budgets impact the administration of criminal justice. Administrators may have tasks that can include mathematical models and other methods in order to assess policies so those in the administrative side can make informed decisions. I personally believe that Criminal Justice Administration is not failing it just have its ups and downs. We have to keep in mind that in order for a criminal justice administrator to be successful he/she has to have a good working idea of the legal system and the role they play in it. How to cite Importance of Criminal Justice Administration, Essay examples

Karl Marx Essays (1952 words) - Karl Marx, Marxism, Marxist Theory

Karl Marx Karl Marx was the greatest thinker and philosopher of his time. His views on life and the social structure of his time revolutionized the way in which people think. He created an opportunity for the lower class to rise Above the aristocrats and failed due to the creation of the middle class. Despite this failure, he was still a great political leader and set the Basis of Communism in Russia. His life contributed to the way people think Today, and because of him people are more open to suggestion and are Quicker to create ideas on political issues. Karl Heinrich Marx was born May 5th, 1818 in Trier. Although he had three other siblings, all sisters, he was the favorite child to his father, Heinrich. His mother, a Dutch Jewess named Henrietta Pressburg, had no interest in Karl's intellectual side during his life. His father was a Jewish lawyer, and before his death in 1838, converted his family to Christianity to preserve his job with the Prussian state. When Heinrich's mother died, he no longer felt he had an obligation to his religion, thus helping him in the decision in turning to Christianity. Karl's childhood was a happy and carefree one. His parents had a good relationship and it help set Karl in the right direction." His 'Splendid natural gifts' awakened in his father the hope that they would One day be used in the service of humanity, whilst his mother declared him to be a child of fortune in whose hands everything would go well. (The story of his life, Mehring, page 2) In High school, Karl stood out among the crowd. When asked to write a report on "How to choose a profession" he took a different approach. He took the angle in which most interested him, by saying that there was no way to choose a profession, but because of circumstances one is placed in an occupation. A person with an aristocratic background is more likely to have a higher role in society as apposed to someone from a much poorer background. While at Bonn at the age of eighteen he got engaged to Jenny Von Westphalen, daughter of the upperclassmen Ludwig Von Westphalen. She was the childhood friend of Marx's oldest sister, Sophie. The engagement was a secret one, meaning they got engaged without asking permission of Jenny's parents. Heinrich Marx was uneasy about this but before long the consent was given. Karl's school life other than his marks is unknown. He never spoke of his friends as a youth, and no one has ever came to speak of him through his life. He left high school in August of 1835 to go on to the University of Bonn in the fall of the same year to study law. His father wanted him to be a lawyer much like himself but when Karl's reckless university life was getting in the way after a year Heinrich transferred him to Berlin. Also, he did not go to most lectures, and showed little interest in what was to be learned. Karl's reckless ways were not tolerated at Berlin, a more conservative college without the mischievous ways of the other universities. While at Berlin, Marx became part of the group known as the Yong Hegelians. The group was organized in part due to the philosophy teacher Hegel that taught from 1818 to his death. The teachings of Hegel shaped the way the school thought towards most things. Those who studied Hegel and his ideals were known as the Young Hegelians. Hegel spoke of the development and evolution of the mind and of ideas. Although Karl was younger than most in the group, he was recognized for his intellectual ability and became the focus of the group. While at Berlin "He came to believe that all the various sciences and philosophies were part of one overarching, which, when completed, which would give a true and total picture of the universe and man." (Communist Manifesto, Marx (Francis B. Randal), page 15) Marx was an atheist, and believed that science and philosophy would prove everything. Thus he had no belief in a god of any type. Marx believed that Hegel must have been an atheist as well because of his strong belief in the mind. Marx's doctoral thesis was competed in 1841. It carried the title "The Difference Between the Philosophies of Nature of Democrtius and Epicurus."(The Making of Marx's Critical Theory, Oakley, page 11) It had to do with the Greek philosopher Epicurus and how his beliefs

How Denocratic a country was Britain by 1914 essays

How Denocratic a country was Britain by 1914 essays How democratic a country was Britain in 1914? During the late 19th and early 20th Century, several acts were passed by Parliament in an effort to make Britain more democratic. However, whether Britain was completely democratic by 1914 is an issue for debate. In order to decide how democratic Britain was we must first establish what a democracy is. The nine major factors which make a system democratic involve providing a secret ballot to ensure privacy, holding regular elections to make sure it is the government wanted by the people who are in power. A democratic system has universal suffrage and similarly anyone can stand for election, making sure everyone has their say in who represents them. Persons in charge should be elected representatives of the people and the government should be by majority. Everyone should have freedom of speech and protection in law as basic human rights. These are the factors that constitute a democracy, but how many of these were fulfilled in 1914? In 1884 the Franchise Act was passed. This meant the voting population was up to six million. It does not bring universal suffrage but two thirds of all males in Britain were now eligible to vote. This was a vast improvement from the early 19th Century when only one in ten men had the vote. This statistic was improved to one in five after the 1832 Great Reform Act. The 1884 Act was therefore a major step towards democracy as it provided suffrage to many more people than in previous years. Prior to the 1872 Secret Ballot Act landlords and employers had a major influence over many people. In some cases, if you voted against them (i.e. not for their favoured party) you might lose your home or job. This pressure forced many people into voting differently than they would have done without this pressure. The 1870 Government Committee of Enquiry found that bribery and treating were common and so the Secret Ballot Act was meant to res ...

Word Choice To, Too or Two - Proofeds Writing Tips

Word Choice To, Too or Two - Proofeds Writing Tips Word Choice: To, Too or Two? As if picking between a pair of similar-sounding words wasn’t bad enough, sometimes the English language will give you three terms that sound identical! With â€Å"to,† â€Å"too† and â€Å"two,† for example, it’s very easy to get mixed up if you’re not careful. This is especially the case with â€Å"to† and â€Å"too,† which we regularly see confused in all types of writing. But precision is vital in academic papers, so make sure you use each word correctly. To (Preposition/Infinitives) Probably the most common of these terms is â€Å"to,† which can be used either as a preposition or in combination with infinitive verbs. As a preposition, â€Å"to† has several meanings, including (among others) indicating direction or duration, identifying a recipient, or making comparisons: Direction: I am going to the store to buy a hat. Duration: The hat shop is open from 9am to 5pm. Identity of recipient: Give the hat to me. Comparison: I prefer Hats Co. to Hats’R’Us. The key factor here is that â€Å"to† always precedes a noun when used as a preposition. When used to mark an infinitive, on the other hand, â€Å"to† is always followed by a verb. This is typically either to express a purpose or to give an opinion: Purpose: I’m wearing a hat to hide my bald spot. Opinion: If you’re self-conscious about balding, it’s a good idea to wear a hat. Or a wig. Eithers good. Too (As Well/Excessively) â€Å"Too† is an adverb that usually means either â€Å"as well† or â€Å"excessively.† In the former case, it works as a synonym for â€Å"also.† When this sense of â€Å"too† is used, it’s often set apart from the rest of the sentence with commas (or preceded by a comma at the end of a sentence): Mid-sentence: I, too, am going bald. End of sentence: I’m going bald, too! When used to mean â€Å"excessively,† â€Å"too† indicates that something is extreme or beyond desirable limits, such as in the following: I’ve lost too much hair to pretend that I’m not going bald. The sun is too hot for me to go out without a hat! It’s worth noting that this use of â€Å"too† never needs to be set apart with commas. Two (A Number) The â€Å"w† in â€Å"two† makes it easier to remember what this word means. In case you’re not sure, though, â€Å"two† is the number between one and three, otherwise represented by the numeral â€Å"2†: It has been two years since I went completely bald. You think you have problems? Try being a naked cat! Generally, it’s better to write out â€Å"two† in full rather than use the numeral in academic writing. To, Too or Two? Although these terms are similar, it’s easy to remember which one to use as long as you keep the following guidelines in mind: To (preposition) = Comes before a noun or an infinitive verb Too (adverb) = Can be replaced by â€Å"also† or â€Å"excessively† Two (number) = Means the same as the numeral â€Å"2†

Word Choice To, Too or Two - Proofeds Writing Tips

Word Choice To, Too or Two - Proofeds Writing Tips Word Choice: To, Too or Two? As if picking between a pair of similar-sounding words wasn’t bad enough, sometimes the English language will give you three terms that sound identical! With â€Å"to,† â€Å"too† and â€Å"two,† for example, it’s very easy to get mixed up if you’re not careful. This is especially the case with â€Å"to† and â€Å"too,† which we regularly see confused in all types of writing. But precision is vital in academic papers, so make sure you use each word correctly. To (Preposition/Infinitives) Probably the most common of these terms is â€Å"to,† which can be used either as a preposition or in combination with infinitive verbs. As a preposition, â€Å"to† has several meanings, including (among others) indicating direction or duration, identifying a recipient, or making comparisons: Direction: I am going to the store to buy a hat. Duration: The hat shop is open from 9am to 5pm. Identity of recipient: Give the hat to me. Comparison: I prefer Hats Co. to Hats’R’Us. The key factor here is that â€Å"to† always precedes a noun when used as a preposition. When used to mark an infinitive, on the other hand, â€Å"to† is always followed by a verb. This is typically either to express a purpose or to give an opinion: Purpose: I’m wearing a hat to hide my bald spot. Opinion: If you’re self-conscious about balding, it’s a good idea to wear a hat. Or a wig. Eithers good. Too (As Well/Excessively) â€Å"Too† is an adverb that usually means either â€Å"as well† or â€Å"excessively.† In the former case, it works as a synonym for â€Å"also.† When this sense of â€Å"too† is used, it’s often set apart from the rest of the sentence with commas (or preceded by a comma at the end of a sentence): Mid-sentence: I, too, am going bald. End of sentence: I’m going bald, too! When used to mean â€Å"excessively,† â€Å"too† indicates that something is extreme or beyond desirable limits, such as in the following: I’ve lost too much hair to pretend that I’m not going bald. The sun is too hot for me to go out without a hat! It’s worth noting that this use of â€Å"too† never needs to be set apart with commas. Two (A Number) The â€Å"w† in â€Å"two† makes it easier to remember what this word means. In case you’re not sure, though, â€Å"two† is the number between one and three, otherwise represented by the numeral â€Å"2†: It has been two years since I went completely bald. You think you have problems? Try being a naked cat! Generally, it’s better to write out â€Å"two† in full rather than use the numeral in academic writing. To, Too or Two? Although these terms are similar, it’s easy to remember which one to use as long as you keep the following guidelines in mind: To (preposition) = Comes before a noun or an infinitive verb Too (adverb) = Can be replaced by â€Å"also† or â€Å"excessively† Two (number) = Means the same as the numeral â€Å"2†

Word Choice To, Too or Two - Proofeds Writing Tips

Word Choice To, Too or Two - Proofeds Writing Tips Word Choice: To, Too or Two? As if picking between a pair of similar-sounding words wasn’t bad enough, sometimes the English language will give you three terms that sound identical! With â€Å"to,† â€Å"too† and â€Å"two,† for example, it’s very easy to get mixed up if you’re not careful. This is especially the case with â€Å"to† and â€Å"too,† which we regularly see confused in all types of writing. But precision is vital in academic papers, so make sure you use each word correctly. To (Preposition/Infinitives) Probably the most common of these terms is â€Å"to,† which can be used either as a preposition or in combination with infinitive verbs. As a preposition, â€Å"to† has several meanings, including (among others) indicating direction or duration, identifying a recipient, or making comparisons: Direction: I am going to the store to buy a hat. Duration: The hat shop is open from 9am to 5pm. Identity of recipient: Give the hat to me. Comparison: I prefer Hats Co. to Hats’R’Us. The key factor here is that â€Å"to† always precedes a noun when used as a preposition. When used to mark an infinitive, on the other hand, â€Å"to† is always followed by a verb. This is typically either to express a purpose or to give an opinion: Purpose: I’m wearing a hat to hide my bald spot. Opinion: If you’re self-conscious about balding, it’s a good idea to wear a hat. Or a wig. Eithers good. Too (As Well/Excessively) â€Å"Too† is an adverb that usually means either â€Å"as well† or â€Å"excessively.† In the former case, it works as a synonym for â€Å"also.† When this sense of â€Å"too† is used, it’s often set apart from the rest of the sentence with commas (or preceded by a comma at the end of a sentence): Mid-sentence: I, too, am going bald. End of sentence: I’m going bald, too! When used to mean â€Å"excessively,† â€Å"too† indicates that something is extreme or beyond desirable limits, such as in the following: I’ve lost too much hair to pretend that I’m not going bald. The sun is too hot for me to go out without a hat! It’s worth noting that this use of â€Å"too† never needs to be set apart with commas. Two (A Number) The â€Å"w† in â€Å"two† makes it easier to remember what this word means. In case you’re not sure, though, â€Å"two† is the number between one and three, otherwise represented by the numeral â€Å"2†: It has been two years since I went completely bald. You think you have problems? Try being a naked cat! Generally, it’s better to write out â€Å"two† in full rather than use the numeral in academic writing. To, Too or Two? Although these terms are similar, it’s easy to remember which one to use as long as you keep the following guidelines in mind: To (preposition) = Comes before a noun or an infinitive verb Too (adverb) = Can be replaced by â€Å"also† or â€Å"excessively† Two (number) = Means the same as the numeral â€Å"2†