Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 27

Global Crossing and Qwest
Review the information presented in the chapter in the discussion of "swap" transactions between Global Crossing and Qwest.
a. What type of fraud did the companies commit
b. Consider the fraud conditions of pressure, opportunity, and rationalization. Which of these elements seem to dominate in this fraud Explain your answer.
c. Describe the auditor's responsibility regarding this fraud.
d. Evaluate the quality of information that outsiders received during the time p0eriod when these companies recorded swap transaction. Identify the specific concepts related to the quality of information that the company violated.
e. Did outsiders receive the information they needed to make good decisions about the company Explain your answer.