||This is going be five questions. after read the case file, which I will upload in the attachment. answer the questions in 11 pages.
1. Who is responsible for the culture of an organization? How would you describe Hollate’s culture? What kind of environment did it nurture? What are the strengths and weaknesses of the culture?
2. What audit risks were indicated as described in the case? i.e., what red flags are described that might affect your assessment of risk if YOU were the external auditor of Hollate? Provide potential audit responses for each, using the fraud triangle where appropriate.
3. Whom do you “blame” for the situation? Support your answer with specifics from the case.
4. Did the audit partner act appropriately once the questionable journal entries were discovered? Did she exhibit the required level of professional skepticism? Under auditing standards, what is the responsibility of the auditor when a potential fraud is discovered (cite the literature – AICPA and PCAOB)
5. What is your opinion of the board – Is its composition and expertise appropriate?