Tiger Pride Enterprises Harvard Case Solution & Analysis

Tiger Pride Enterprises case solution

Particularly, the engagement partner has actually asked you to think about exactly what elements support the conclusion that the audit of Tiger Pride is a group audit. The partner would likewise like you to carry out the following: (1) recognize the parts within the group entity to scope your work, (2) determine economically considerable elements, (3) identify parts that are substantial since of threat, and (4) identify the kind of work to carry out on the determined considerable elements.

Background Information

Each department has several company systems. Each organisation system has a different basic journal, and each department combines its company systems at the divisional level. Each organisation system has its own basic journal, all deals are processed and taped at business system level, and much of business systems need statutory audits at business system level. The conclusion of a few of the statutory audits is at the exact same time or prior to the conclusion of the audit of Tiger Pride.

Describe the 2 tables listed below for additional details:

Table A-- Tiger Pride Enterprises Divisional Key Metrics.

Table B-- Financial Information for Tiger Pride Enterprises Business Units. Group materiality is $50 million.

Tiger Pride Enterprises

Other Relevant Facts

On the basis of historic understanding of the group, divisional and company system management is well certified and has actually shown its capability to successfully handle its provided obligations with the exception of the management group at Business Units 6 and 7 in Division B. (See listed below for additional info.). There are routine conferences in between business management at the combined level and organisation system management to go over company advancements and to evaluate service system efficiency. In addition, business management screens company system operations and monetary outcomes, that includes routine reporting regimens. Income and earnings prior to tax are thought about the crucial efficiency indications by business management and users of the combined monetary declarations.

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Tiger Pride has an efficient internal audit program that is well staffed and handled. As soon as every 2 years with completely recorded reports of the treatments carried out and findings readily available for evaluation, the internal audit group sees each of the company systems at least. Each company system keeps its own records and accounting, Tiger Pride runs on one centralized info innovation (IT) system. On the basis of this analysis, the following info has actually been recognized:.

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Department A, Business Unit 4: This organisation system has reasonably big earnings quantities ($ 400 million) with a large net loss ($ 50 million) sustained to date. Through conversations with management, the system settled substantial asbestos claims and other lawsuits throughout the existing year resulting in payments higher than quantities accumulated.

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