Hanauer's

Issues 1.Identify knowledgeable control risks universally faced by a brokerage firm. Identify specific control risks present by Hanauers operations. Did Hanauers studyors properly investigate these risks and inject them into status when planning their year-end tests? 2.Identify the examine objectives that Hanauers canvasors hoped to accomplish as a result of their account confirmation procedures. In your response, contract each of the four types of account balances. 3.What special alternative audit procedures do you believe the Hanauer auditors should have employ to those accounts that the client did non compulsion confirmed? 4.Define a material audit field limitation in general terms. Do you agree with the endorsement that Hanauers management enforce a material mountain range limitation on its annual audits? 5.Should an audit client be allowed to follow its engagement audit partner to another accounting firm? Facts J.B. Hanauer & Co. is a brokerag e firm headquartered in unsanded Jersey. During the late 1970s and too soon 1980s Stanley Goldberg superintend the annual audits of J.B. Hanauer & Co. During his career Goldberg served as an audit partner with deuce-ace different public accounting firms.

When he left Touche Ross to sum of money Eisner, Hanauers executives wanted Goldberg to continue administer their annual audits. As a result, in 1980 these executives dismissed Touche Ross and contain the Eisner firm. Despite several(prenominal) questions regarding the reliability of Hanauers internal controls, each year that Goldberg manage the firms independent audit, he concluded that in that location were no material weakness es in its internal control structure. one o! f his greatest concerns was the extensive and unusual distributor point of position Hanauer granted to its gross revenue staff. Some tasks performed by gross revenue staff were: they accepted and processed customers purchased orders, personally delivered customer confirmations, obtained ballpark carrier coupon and deposited cash received from customers. One critical...If you want to accept a full essay, order it on our website: OrderEssay.net

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