Review the Cardillo Travel Systems case , located in Chapter 6 of your textbook .
Write a four to five ( 4-5 ) page paper in which you :
Explain the Securities and Exchange Commission ’ s rationale to charge Cardillo executives with each of the following violations :
a . making false representations to outside auditors b . failing to maintain accurate financial records c . failing to file prompt financial reports with the SEC d . violating the insider trading provisions of the federal securities laws
Determine who was in violation or compliance of the AICPA ’ s Code of Professional Conduct in this case study and analyze the key reasons why they were or were not in compliance . Provide support for the rationale .
Analyze the actions taken by Cardillo ’ s outside auditors and evaluate the level of efficiency of the audit risk management in this case study . Provide support for the rationale .
Determine whether or not the five ( 5 ) components of internal control were being followed . Support the response with at least two ( 2 ) examples .