ACC 562 Cardillo Travel Systems Assignment

ACC 562 Cardillo Travel Systems Assignment
Review the Cardillo Travel Systems case, located in Chapter 6 of your textbook.
Write a four to five (4-5) page paper in which you:
1. Explain the Securities and Exchange Commission’s rationale to charge Cardillo executives with each of the following violations:
a. making false representations to outside auditors
b. failing to maintain accurate financial records
c. failing to file prompt financial reports with the SEC
d. violating the insider trading provisions of the federal securities laws
2. Determine who was in violation or compliance of the AICPA’s Code of Professional Conduct in this case study and analyze the key reasons why they were or were not in compliance. Provide support for the rationale.
3. Analyze the actions taken by Cardillo’s outside auditors and evaluate the level of efficiency of the audit risk management in this case study. Provide support for the rationale.
4. Determine whether or not the five (5) components of internal control were being followed. Support the response with at least two (2) examples.
5. Create an argument for or against whether auditors have a responsibility to assess the judgment of the decisions made by Cardillo’s management. Support the argument.
6. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and similar type Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Analyze the process and regulatory requirements for professional ethical decision making.
Analyze the critical factors of business, audit, and planning risks, and the process of managing these risks in audit engagements.
Analyze an audit framework and assessment process for evaluating the effectiveness of internal controls related to financial reporting.
Use technology and information resources to research issues in auditing.
Write clearly and concisely about auditing using proper writing mechanics.

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