Auditing Assignment

Current issue - a scandal in Adler Real Estate

Introduction
- For this assignment, you are required to research and report back about the auditing implications on an accounting scandal in Adler Real Estate based in Germany.

Research into the Scandal

I have given the following links about the issue as a starting point for collecting information. However, you are required to carry out your own research to gather relevant contextual information about scandal.

- Carry out research to get an understanding of the main points of the affair, paying special attention to the role of the auditors. You should use reputable published sources. These can include newspapers, other news media and official reports. (NB Wikipedia is not an acceptable source)
- Write a report that discusses the events and their implications for auditors. Your discussion should include:

1. Introduction - overview of your report (purpose and its significance in the context of auditing, and the scandal you will be discussing);

2. The organization, the time and place (background, industry, size, significance, and the time and place of the scandal as a framework for the reader);

3. What happened - an overview of the event in general (comprehensive but concise overview of the key events, outlining the sequence of actions and decisions that led to the scandal);

4. One example of fraud in the selected organization (provide detail of the nature of the fraud, how it was perpetrated, and its impact);

5. The stakeholders, and what the consequences were for them (various stakeholders affected by the scandal, and the specific consequences they faced including financial losses, reputation damages, legal actions, etc.);

6. Who were involved, and their role in the scandal if any;

7. The current situation of those responsible for the fraud (provide an update on the legal and regulatory actions taken against those involved in the fraud, as well as any consequences they have faced);

8. Auditing implications (reflecting your understanding of various concepts taught in this unit such as audit planning, risk assessment, internal controls, ethical considerations, and auditor independence) of the scandal

9. Conclusion (summarise the key points of the report and highlight main take away regarding audit implications)

10. References.

• Your answer should:
• Be no more than 800 words not including references. (Note: the word limit is not an absolute figure - we usually allow a little (5%) under/over the limit. However, if the deviation is material, we can penalise you);
• Be based on news articles and other reasonably reliable sources;
• Be supported by references to your sources (we prefer APA style).