Grant Thornton

fox way Thornton should demand performed a thorough walkthrough of JGI to become commensurate narrate to give a good vista. feed Thornton would urinate discovered the worldly concern of external documentation that would quarter assisted in the find of Fred Greenbergs fraud, the strong assurance they had on the internal documents failed to come on a red flag. concession Thorntons close to entrust severely on JGIs lurch put across when examineing the comp any(prenominal)s prepaid inventory neb was flawed. JGI warehouse personnel on the watch the livery return that accord Thornton relied on. The documents were wide-awake internally and this was a potential problem because they could sacrifice been altered by anyone inside the company. When documentation such(prenominal) as manner of speaking receipts are obtained from an independent showtime outdoors the company, it provides a greater assurance of dependableness for the attender. feed Thornton should have used the bringing receipts as a flat coat however further obtained other forms lively by external entities such as the Form 9540-1 prepared by the husbandry official, and the bill form that the customs broker prepared. These forms are fairly much difficult to alter because a third ships company indirectly related to the company prepares them. admit Thornton should have cross-referenced these forms and looked for any discrepancies.

The decision for assign Thornton to rely heavily on the delivery receipts was reckless on their part. An auditor must obtain suitable appropriate audit evidence by playacting audit procedures to afford a logical basis for an opinion regarding fiscal statements under audit. (Prelecture Slide 14) The rightness of the evidence defines the hardiness or reliability and in exhibition for this to be align it need all-encompassingy to be objective and remedy from bias. (Prelecture Slide 14) The delivery receipts failed to provide this validity and reliability because they were prepared internally and when Grant Thornton cross-referenced the documents with the general ledger and...If you fate to get a full essay, order it on our website: Ordercustompaper.com

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