Preparation For this assessment, you must analyze four case studies and write responses to the listed items for each case study.Reviewing the resources for this assessment will give you a good start toward preparing for the assessment. Case Studies Case 1Southeast AgSupply Company is looking into a merger with another Agsupply company in a neighboring territory. Southeasts Internal Auditor has hired a forensic accounting firm to investigate the merger candidate. In relation to this scenario, write responses to the following questions: What types of investigations should the forensic accounting firm conduct? What types of outside assistance might help the forensic accounting firm conduct a thorough investigation? Case 2Write responses to the following: Are there differences in the investigations a forensicaccountant would undertake for a civil matter versus a criminal matter? What are the similarities in the nature of the investigations? Are the expected outcomes of the investigations the same? What are the similarities, and what are the differences? What specialized training would the forensic accountant needto conduct the different investigations? Explain. Case 3Reasonable assurance is a concept that relies heavily on internal control, but Amber Johnson, the chief compliance officer of the Holly Company, has doubts about the effectiveness of reasonable assurance. She has demanded complete compliance with all processes related to the compilation of the financial statements. She said, As long as I am the compliance officer here, we will have a perfectly monitored system that absolutely prevents fraud or misstatements in our financial statements. Derek Lodge, the controller, disagrees with Amber Johnson. He feels that requiring more than reasonable assurancecosts too much and is impossible to implement. Write responses to the following: Do you agree with Derek Lodge or Amber Johnson? Explain. Is preventing all financial statementfraud or misstatement an unattainable goal? Explain. Suppose the internal auditor reports to the CEO. Does that complicate the goal of preventing all financial statementfraud or misstatements? Explain. Case 4Total Fresh Products manufactures and distributes snack foods. Total Fresh Products is being audited for the first time by Rachel Fancy, a partner in a local CPA firm. Early in the audit, Rachel uncovered that the CEO had acquired a home media system, a Mercedes Benz, and an exercise pool for his personal use. These items were delivered to the CEOs home, and they were recorded in the accounting records as professional services. On Total Fresh Products most recent federal tax return, the items were included in deductible business expenses. Write responses to the following: What should Rachel Fancy do with the information she has uncovered? What impact should the discovery have on how she proceeds with the audit? How should the findings be reflected in her audit opinion report?
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