Regina Company Case Study Example | Topics and Well Written Essays - 500 words

Regina Company - Case Study Example d went on unidentified for a long period of time and it made the company create a good image of its success but this was not to go on since the company started experiencing losses when it could not keep up with the fraud. The auditors should have checked the financial records and also identify the source documents for every activity of Regina so as to determine if the figures were the same in all the receipts and the records maintained by Regina. 4. Since the auditors detected one ship-in-place transaction they ought to have acted independently and carry out a thorough investigation on the matter even after being told that there was no additional ship-in-place transaction as this is the duty of the auditor to ensure that dig deeper on the issue without trusting the people on the ground as they tend to conceal the truth. 5. The auditor is supposed to place little or no reliance on the client inquiries. The client is only supposed to answer questions when called upon to do so by the auditor and no opinion or suggestion should be taken from the client whatsoever. 6. The statement â€Å"why don’t you write something to get the stock up?† made by Sheelen to his financial analyst is inappropriate in the sense that it amounts to a fraud on the part of the company and also it is a way of conceal the true value of the company’s stocks from the innocent