Group Members :

1. Phoon Pui Yan

2. Chan Pui Mun
3. Lian Cai Ying
4. Nur Athilah Ahmad Rashdi
 Keep giving unqualified report Give qualified report
or not

• Androids will lose their license if • As an independent auditor,

they are being convicted of David should have well known
issuing materiality false and about their basic responsibilities
misleading audit reports as this which is to give true and fair
is the last chance SEC given to view of financial statement.
Androids.
• SEC may give leniency in
punishing Androinds.
Androids.
To shred the audit working papers To not shred the audit working
papers

• Androids could have been • David should follow Nancy’

convicted for violating the advice to be accordance with the
document retention rule. policy by keeping the versions of
the memos while discarding
• This shows SEC that Androids drafts.
has relationship to the fraud that • Allow the SEC to have free
they try to conciled by shredding access to the audit working
their working papers. papers in their investigation.

• The working papers may be used

as evidence in helping Androids
from being fully liable to the
fraud that Enronaa do.
 Yes - auditors are sensitive about their audit working papers.
 Auditors prepare and organise their working papers in a
manner that helps the auditor carry out an appropriate audit
service.
 Working papers is importance
 Woking papers provide evidence that an effective, efficient,
and economic audit has been carried out.
 The name of the client
 The period coverd by the audit
 The subject matter
 The file reference
 The initials of the member of staff who prepated the
woking paper, and the date on which it was prepared
 In the case of audit papers prepared by client staff,
the date the working papers were recevied, and the
initials of the audit team member who carried out
audit work
 THe initials of the member of staff who reviewed the
working papers and the date on which the review was
carried out
 Each audit paper should meet the characteristics of a
good workinh paper, as detailed later in the ACCA
wedsite
 • Androids willing to follow the
instruction of management of
Independent Enronaa.

• Conflict of interest which auditor’s

independent and their ability to
perform audit independently.

• Enronaa and Solid Waste to issue a

false audit report for their financial
Integrity statement.

• Do not conduct well auditor

integrity when they shredding their
client’s documents.

Risk of management • Android should discontinued to act

as Enronaa auditor.
 There is an argument on David’s action. It may led to
approval or disapproval which depends in which
perspective.
 This involved 2 perspective which are business perspective
and audit perspective.
 In business perspective, David action is consider approval
because he is trying to save the company from falling due
to the probation of SEC and also to protect Android with
the welfare of the company itself.
 In audit perspective, David is consider disapproval because
he is trying to disposal the evidence about the company
condition. Furthermore the trigger of it is was Nancy
(Lawyer) who have email to all the staff to shredding the
document which she already knew something going to
happen to the company.