We need a memo (GA-6) addressing the potential for fraud for Apollo Shoes. Th...
[*]We need a memo (GA-6) addressing the potential for fraud for Apollo Shoes. This workpaper is necessary to document that we are following the professional literature concerning fraud consideration.
[*]ANSWER.MEMO
To: XXXX
Date: DD/MM/YYYY
From:XXXX
Subject: Addressing potential for fraud.
We have distinguished a few significant danger factors while thinking about the probability of extortion in this engagement. Most importantly, while evaluating the board minutes for Apollo Shoes, Inc., the director of the board Mr. Larry Lancaster communicated extraordinary disappointment at not gathering benefit marks and on various occasions referenced that heads would roll. He appears to have an exceptionally enormous measure of pull inside the association and we accept the control climate might be in danger of being overwhelmed by Mr. Lancaster. His accentuation on gathering productivity norms is a major warning for us.
Another section that we should watch out for is concerning the nature of the items. Mr. Lancaster communicated dismay at the elevated level of nature of their items since they weren't destroying sufficiently quick to prod on new buys by clients. There is likewise the way that the organization is right now being sued.
The other key component while considering extortion is that Apollo Shoes, Inc. has denied our solicitation to talk with the past review firm. Their thinking is that because of forthcoming prosecution over how rapidly that firm pulled out from the commitment, they would favor us not to have contact with them. As far as we might be concerned, that is a beautiful huge warning.
We accept the key here is Mr. Lancaster and the force he employs here at Apollo Shoes, Inc. We accept that an extortion could be executed against the association rather effectively by Mr. Lancaster either by fudging the numbers to meet assumptions or by some kind of theft. The level of opportunity and force he shows inside the association, and the apparent failure for some other leader or block part to remain to him would lay the preparation for his possible mistakes.
In light of these key variables, it will be significant for us as a review group to have a serious level of freedom and spot and accentuation on expert wariness. We ought not take anything Mr. Lancaster says at face esteem. We will need to confirm, check, and confirm with regards to all the data for the situation. Conceptualizing will be key for this to arranging meeting to succeed.
We likewise should ensure we perform out reviews in an unexpected style. We will need to test controls, exchanges, balances, and so on without educating Apollo when and where we will test. We ought to likewise consider testing accounts that would normally not get a lot of examination.
At last, in view of the worry we have appeared concerning Mr. Lancaster, we should take an extraordinary level of interest in all the chief abrogates he employments. As expressed before, Mr. Lancaster has a lot of force and anticipates a great deal of those underneath him. This opens the entryway for expected extortion in the association right starting from the top.
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