Selected Cases of SEC Audits in the United States

Author: Cullinan Gail B. White | Translated by
Publisher:
Publish Date: 2005-04-01
Features: The characteristics of this case textbook are as follows:
1. The cases are realistic. The cases in the book describe real companies and real auditors.
2. Cases in the book can be continuously updated through the website of this book.
3. Many of the issues in the cases are related to risk assessment, the application of audit judgment, and ethical considerations. These issues are marked with symbols for easy identification.
4. Many cases require students to comprehensively apply accounting and auditing knowledge to address the misstatements presented in the book.
5. Many cases help explain the auditors' audit responsibilities for fraud as confirmed in U.S. Auditing Standard No. 82. Many cases include issues specifically related to the motivation and opportunity for fraudulent financial statements. The main objective of learning this book is to integrate the scenarios auditors face in real-world work into classroom discussions. The specific learning objectives can be divided into the following three categories: First, integrate audit elements (risk assessment, professional judgment, ethical considerations) into discussions and decision-making. Second, cases can help students understand ineffective audit procedures that are not always permanent by observing the mistakes made by auditors involved in failed audit activities. Third, by studying cases where management has been cited for misstating financial statements, students should become sensitive to the actual potential risks of fraudulent financial reporting. This book includes 26 cases excerpted from documents on misstatements and misleading financial reports published by the U.S. Securities and Exchange Commission's Enforcement Division. In these cases, there are instances where individual auditors were singled out by the SEC for performing low-standard audit work, cases where auditors discovered financial statement misstatements, and cases where no mention was made of the auditors. However, we can draw lessons from all the cases about the possibility of financial statement misstatements and how auditors discover these errors. These cases also illustrate the SEC's stance that the public interest should be given careful consideration by auditors when auditing publicly listed companies. Additionally, since these cases involve real people, companies, and events, students should recognize that fraud is real, and independent auditors are often caught between the interests of management and the needs (rights) of investors. Management wants to appear favorable, while investors want accurate financial information to make decisions.