PART B As part of the case study extract it was noted that the chairperson of the supervisory board (after Markus Jooste resigned), Heather Sonn, acknowledged that while "accounting irregularities" had occurred which led to the "material overstatement of the income and asset values of the group", Steinhoff's focus remained on finalizing a "restructuring plan for the company and completing the 2017 audit. She continued saying. "We want to uncover the truth, show the world what has happened, prosecute any wrongdoing, and reinstate trust in the company. As the Senior Internal Audit Manager of ABC Advisory, you recently reported the following findings to the audit committee: 1. Aisha a personal assistant to the CEO of Steinhoff downloaded an unauthorised music program onto her work computer. Personal and business information were distributed via emails to the rest of the company, all her contacts as well as some digitally altered "deepfakes", to several suppliers of the company. 2. The Finance Manager (FM) received an email from the "CEO" while the CEO was on leave holidaying in Europe. The email requested the FM to transfer R90,000 to an account held with the Bank of Belgium. There was a back and forth between the FM and CEO regarding the payment details. The FM prepared all the relevant documentation and took this to the CFO for approval of payment. The payment was made. During the audit committee meeting, where these matters were reported, the chairman of the audit committee was upset by the blatant and arrogant way the company was defrauded. The chairman of the audit committee stated that the auditors should have picked up on these activities in the year ago and felt that the assurance providers had to explain why the incidents were not detected during previous engagements. REQUIRED Marks 1.3 In a memorandum to the chairperson of the audit committee, explain the responsibilities of both internal and external audits with regard to fraud prevention and detection 10 1.4 Consider the two scenarios above, indicate the information technology fraud, and fraud risk and recommend appropriate actions 10 1.5 Provide the audit committee with a recommendation on how to implement a fraud risk management process indicating what should be done at each stage

Which of the following conditions or events would most likely cause an auditor to have substantial doubt about an entity's ability to continue as a going concern? Select one: O a. Significant increase in related-party transactions. O b. Research and development projects are postponed. O c. The CEO, who is key to the company's operations, resigned. O d. All of the options are correct.

Executives of several companies believe that non-GAAP financials portray a more accurate picture of company performance. Although not legal, the use of non-GAAP financials has been controversial for years. In fact, the SEC published guidance regarding the misleading impact of the use of non-GAAP figuresLinks to an external site. in October of 2017. In your opinion, are the use of non-GAAP financial measures ethical? Please explain.

You are a partner incharge of the audit for Bargin Ltd, a private company. The finishing of the audit report is pending for the income year 2018 and you have recorded some situations where possible action is required They  are listed below: Bargin Ltd, carries its property, plant, and equipment accounts at current market values. Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughout the financial statements. Management of Bargin Ltd, refuses to allow you to observe, or make, any counts of inventory. The recorded book value of inventory is highly material. You were unable to confirm accounts receivable with Bargin Ltd, customers. However, because of detailed sales and cash receipts records, you were able to perform reliable alternative audit procedures. One week before the end of fieldwork, you discover that the audit manager on the Bargin Ltd, engagement owns a material amount of Bargin Ltd,  common stock. You relied…