jamaica water properties - accounting 122 onl.DOCXVIP

AraraoCampecinoIdongTable of ContentsList of figures4CASE BRIEF5Case Abstract5Auditors’ Dilemma5Auditors’ Questions5Research Questions6case context7I.Understanding The Entity7A. Jamaica Water Properties Inc.7Origins7Instability in the 1960s and 1970s8Success in the 1980s8Restructuring and Bankruptcy in the Early to Mid-1990s9Renewed Success in the Mid-1990s and Beyond10B. The Entity and Its Environment12Financing12Investing16Regulatory Factors18II. Understanding the Industry23A. The Utilities Industry23B. Utilities Industry and JWP Inc.24The Water Utilities Industry24Facilities Management Industry26Information Systems Industry29Energy Industry31CASE RESOLUTION36RESEARCH QUESTIONS AND CORRESPONDING ARGUMENTS AND SOLUTIONS36General Responsibilities of Internal Auditor37Additional Higher Level of Responsibilities:38Duties of Internal Auditor in the Detection of Fraud39Reasons for the Internal Auditors Tolerance to Grendi’s Malpractices40Argument 140Grendi being the CFO of JWP must be obeyed.40Counter Argument 141Confronted with this situation, the internal audit function should not be intimidated so since the authority being granted to these key officials are not absolute.41Argument 241The employees are bound by their Duty of Confidentiality41Counter Arguments 242Argument 342Whistle blowing will result to the loss of job.42Counter Argument 343Actions to be done to solve the ethical dilemma of whether to conceal the fraud or disclose it.43Responsibility of the Management in Fraud Detection44Measures to Protect the Internal Auditors from Factors that may Adversely Affect the Quality of Auditors44Installation of a Corporate Structure emphasizing the vital role of the audit function44Establishment of appropriate and sufficient safeguards to reduce or even eliminate exposure to threats46Measures to Encourage Whistle Blowing47Protection from being fired or demoted and reinstatement47Compensation for loss of wage47Compensation for costs of making the complaint and possible e