Accounting homework help

 With a plot centered on a bribery allegation and questionable accounting oversight within the company, LDC Cloud Systems provides the reader a better appreciation of how fraud situations can unfold and then addressed, including the importance of strong board oversight. The case study explores actions of management and the board, along with the timeline of decisions after they uncover potential problems within the company. It also illustrates how complex accounting practices common in today’s fast-changing business environment can make a company susceptible to fraud.

Resources:

LDC Cloud Systems Case Study (Links to an external site.)

LDC Cloud Systems Case Study Video (Links to an external site.)

Assignment

Review the written case study from the link and review the following scenes that re enact conversations among LDC key players.

SCENE 1: CONVERSATION BETWEEN SCOTT TENSAR AND FILIPPE ARIZMENDI : PAGE 5

This conversation highlights (Links to an external site.)Internal Audit Head Scott Tensar’s concern that he needs more staff to keep up with the growth in the company.The CFO seems to understand Tensar’s dilemma, and notes that he, too, could use an additional accounting policy expert, but any expansion of staffing levels will have to wait.

Respond to the following questions ensuring you provide examples and concepts from our lessons.

1) What challenges are facing the accounting and internal audit departments in keeping up with a fast growing public company.

2) Since the company’s IPO three years earlier, it has “graduated” from the designation of an emerging growth company (EGC) to a large accelerated filer. How has this affected the external auditor?

3) What evidence exists that a component in the fraud triangle is being compromised? Be specific about the behavior you have observed.

4) What role should internal audit play in ensuring adequate controls?

SCENE 2: CONVERSATION BETWEEN LATHAM ASPER AND LESTER DARNAL – PAGE 6

In this conversation, Audit Partner Latham Asper (Links to an external site.)is asking Audit Committee Chair Lester Darnal if he has seen—and if he is concerned with—signs of stress in LDC’s accounting team.

Respond to the following questions ensuring you provide examples and concepts from our lessons.

1) State the evidence that LDC is a fast-growing startup. Comment on the reasons why the critical support functions of accounting and internal audit are busy and under stress. Is this typical in a start-up?

2) The external auditor has noticed the accounting department is under stress and has raised the issue with the audit committee chair. Given his oversight responsibilities, should the audit committee chair be more proactive?

3) What additional questions should the audit committee chair ask of the external auditor? Of internal audit? Of the CFO about his finance team?