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AC503 Unit 2 North Face Inc

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$12.99


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AC503 Unit 2 North Face Inc

1)    Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements? Defend your answer.

1)    Should auditors take explicit measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements? Would it be feasible for auditors to conceal this information from their audit clients?

1)    Identify the general principles or guidelines that dictate when companies are entitled to record revenue. How were these principles or guidelines violated by the $7.8 million barter transaction and the two consignment sales discussed in this case?

1)    Identify and briefly explain each of the principal objectives that auditors hope to accomplish by preparing audit work papers. How were these objectives undermined by Deloitte’s decision to alter North Face’s 1997 work papers?

1)             North Face’s management teams were criticized for strategic blunders that they made over the course of the company’s history. Do auditors have a responsibility to assess the quality of the key decisions made by client executives? Defend your answer.

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