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Auditing Free Essay, Term Paper and Book Report

Throughout the audit many significant deficiencies were discovered throughout the entire company. The most obvious being the lack of a documented code of ethics and lack of internal control structure. Abe Johnson believed that the company was too small for a written code and it was not worth the cost. This excuse is not sufficient; if management does not know the ethical values of a company, then they are more apt to committing fraud or being negligent towards financial statements and other important documents. If management does not lead with a defined ethical code, then the lower employees will be more susceptible to following management's lead in negligence. The internal control is a major problem as well; Abe Johnson, the CEO, is also on the board, which is a conflict of interest. The board should be separate of management and therefore their influence will be more reliable and less biased. During one board meeting, they approved the purchase of a Mercedes-Benz for Mr. Johnson. While under normal circumstances that might be acceptable, Abe was on the board who approved it for h......

Word Count: 761
Page Count: 3  (250 words a page / double spaced)

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