The following assignment is for an advanced auditing class.The textbook used for this class is"Auditing: A risk-based approach to conducting a quality audit" (9th Ed.) by Johnston, Gramling, & Rittenberg. The assignment description is as follows:
The assignment is to do a research report that identifies and analyzes a company that has experienced a breakdown in audit procedures. The company chosen for this assignment isAdelphia Communications (Deloitte was the auditor for Adelphia).
1. The report must describe the issue surrounding Adelphia and any company policies in relationship to the impact those might have on public audits/accounting.
2. Provide the following elements in your paper:
o An executive summary identifying the company (Adelphia), the audit issue, the affected shareholders, and the ultimate resolution.
o A brief history of Adelphia.
o A thorough analysis of the auditor's role, including any auditing standards that the auditor did not follow.
o Identification and discussany internal controls that were circumvented.
o Identification and discussany audit standards that were not followed.
The paper must meet the following requirements:
- 8-12 pages in length(not including title and reference pages).
- Formatted according to APA requirements.
- Include four or five outside sources. One source can be the SEC Enforcement Action that was related to the fraud under examination.
Note: Keep in mind that the above research report is to focus on auditing. It is important that elements that are relevant to both basic and advanced auditing be included in the report.