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Essay Available:
4 pages/≈1100 words
6 Sources
Accounting, Finance, SPSS
Research Paper
English (U.S.)
MS Word
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North Face (Research Paper Sample)

1. The SEC sanctioned Richard Fiedelman for failing to document the changes that were made in 1997 North Face audit work papers and for failing to excerise due professional care. Explain the SEC's rationale in making each of these allegations. 2. Take a pro position on the severity of the SEC's punishment of Richard Fiedelman of a 3 year suspension on being involved in the audits of SEC clients. Support your position 3. Assume you are an audit manager and the engagement partner asks you to modify client work papers after the financial statements and opinion has been issued. Determine what you would do and provide rationale 4. evaluate the practice of materiality used by public accounting firms and how accounting firms should address it with clients. 5. North Face management teams were criticized for strategic blunders that were made over the course of the company's history. Discuss whether auditors have a responsibility to assess the quality of key decisions made by client executives. Defend you answer source..
Auditing Procedures Name Course Tutor Date SEC Working papers play a vital role in explaining the rationality of the audit report given by an auditor. These papers describe the audit report and all the procedures that were followed during the audit period (Kumar & Sharma, 2006). As such, these papers are seen as vital documents that must not be altered. Furthermore, any additional work done on the final report should also be accompanied by similar papers. Fiedelman failed to have additional working papers despite the process continuing after finalization. This meant that the integrity of the audit report had been compromised as there was no way of ascertaining that the required rules were followed. In addition, the lack of working papers for such changes meant that the rationale behind the changes was not provided. Since the report had already been finalized, any changes that were to be made on the document had to be justified. The lack of justification meant that the audit report had been corrupted. This was the basis for the sanction given to Fiedelman. Professionalism in auditing is a vital aspect that ensures that all audit reports reflect the true events that took place. According to Knapp (2008), Fiedelman failed to observe professionalism in his work. The audit report included various transactions that were in contrast to other reports by Deloitte the previous year. This meant that the auditor was unable to handle his tasks in a professional manner hence prompting the SEC to sanction him for his actions. Lack of professionalism can erode the credibility of an audit report and there is need, therefore, to always ensure that due diligence and procedure is followed. Justification for 3 year ban on Fiedelman The 3 year sanction given to Fiedelman by the SEC (Securities and Exchange Commission) was justified. The rules set out by the commission ensure that a person who is found to have been unprofessional may be terminated from working for the clients of the ...
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