Title: The SEC’s Case against California Micro Devices: A Lesson in Using Professional Skepticism and Obtaining Sufficient Appropriate Evidence
Abstract: ABSTRACT: This instructional case involves charges by the Securities and Exchange Commission (SEC) against Michael Marrie, an audit partner, and Brian Berry, a manager, for recklessly failing to comply with auditing standards relating to three areas: a $12 million write-off of accounts receivable, confirmation of accounts receivable, and sales returns and allowances. The SEC believed Michael and Brian did not exercise due professional care, nor did they employ an adequate level of professional skepticism when performing the audit. The SEC also believed that there was insufficient appropriate evidence to express an opinion. This case addresses the following auditing content: Generally Accepted Auditing Standards, professional skepticism, analytical procedures, estimates, fraud risks, confirmation of accounts receivable, and work papers.
Publication Year: 2011
Publication Date: 2011-02-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 13
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot