Essay about Goodner Brothers Audit Case

DATE: Mar 6, 2013

SUBJECT: Goodner Brothers, Inc.

The Goodner Siblings, Inc. audit case is based off the tale of two men who have been friends seeing that their years as a child: Woody Brown and Ing Hunt. At this point as adults, Mr. Search works pertaining to an auto supply store while Mr. Johnson works to get Goodner Siblings, Inc., a tire wholesaler in Huntington, West Va. In the Goodner case, inner auditors were conducting all their annual inventory counts of Goodner Siblings, Inc. and determined that their figures were below the publication inventory amounts by $143, 000. Since it would with any company, the misstatement of inventory increased red flags driving the company to make contact with their 3rd party audit organization to investigate the inventory shortage. The investigation concluded that the company did not have adequate inside controls and that many problems involving Mister. Robinson been with us. Below I possess detailed my own overall opinion, the issues adjacent the company, and future internal control procedures that might support limit products on hand theft and access to accounting records. At the conclusion of the research, the company eventually filed a lawsuit against Mr. Brown, thus that means he was ended from the business prior to the legal action. I agree with this action because it was the key to establishing a new strengthen at the top. If the company is usually to implement fresh internal control procedures, they needed to send out the concept to different employees that theft are certain to get you dismissed. I believe that the company must have implemented the subsequent internal control objectives into their daily procedures in order to secure assets and accounting records. First, the company should segregate the obligations of authorization, implementation, and recording among three or more individuals to decrease the risk of fraudulence. As stated in case, " besides the Huntington facility's bookkeeper, the unit's sales manager, and two sales representatives experienced unrestricted entry to the accounting system. ” Segregating...

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