Information systems

You are an audit supervisor assigned to a new client, Go-Go Corporation, which is listed on the New York Stock Exchange. You visited Go-Go’s corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, the following events occurred: • You met with Go-Go’s audit committee, which consists of the corporate controller, treasurer, financial vice president, and budget director. • You recognized the treasurer as a former aide to Ernie Eggers, who was convicted of fraud several years ago. • Management explained its plans to change accounting methods for depreciation from the accelerated to the straight-line method. Management implied that if your firm does not concur with this change, Go-Go will employ other auditors.    

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