Week 4 - Investigating Fraud

Week 4 Case Study

Criteria

Ratings

Pts

This criterion is linked to a Learning OutcomeNarrated Powerpoint Slide

Provided a narrated power point or a Kaltura video with answers to the 5 questions

5.0 pts

This criterion is linked to a Learning OutcomeCommon-Sized Balance Sheets/Income Statements

Prepared common-sized balance sheets and income statements for Just for Feet for the period 1996-1998. Computed key liquidity, solvency, activity, and profitability ratios for 1997 and 1998. Given these data, commented on what you believe were the high-risk financial statement items for the 1998 Just for Feet audit.

15.0 pts

This criterion is linked to a Learning OutcomeInternal Control Risks

Just for Feet operated large, high-volume retail stores. Identify internal control risks common to such businesses. How should these risks affect the audit planning decisions for such a client?

5.0 pts

This criterion is linked to a Learning OutcomeAudit Planning Decisions

Just for Feet operated in an extremely competitive industry, or subindustry. Identify inherent risk factors common to businesses facing such competitive conditions. How should these risks affect the audit planning decisions for such a client?

5.0 pts

This criterion is linked to a Learning OutcomeAudit Risk Factors

Prepared a comprehensive list, in a bullet format, of the audit risk factors present for the 1998 Just for Feet audit. Identified the five audit risk factors that you believe were most critical to the successful completion of that audit. Ranked these risk factors from least to most important and be prepared to defend your rankings. Briefly explained whether or not you believe that the Deloitte auditors responded appropriately to the five critical audit risk factors that you identified.

15.0 pts

This criterion is linked to a Learning OutcomeThomas Shine

Put yourself in the position of Thomas Shine in this case. How would you have responded when Don-Allen Ruttenberg asked you to send a false confirmation to Deloitte & Touche? Before responding, identify the parties who will be affected by your decision.

5.0 pts

Total Points: 50.0