Audit, Assurance and Compliance Assignment - Deloitte

Audit, Assurance and
Compliance

Executive Summary
Deloitte & Touche LLP is UK private company limited by guarantee. It is one of the
UK's third largest accounting firm at multinational level.Adelphia Communications Corporation,
a cable television company with its headquarter in Coudersport, Pennsylvania. One of the fifth
largest cable company in the United States before filing of bankruptcy status in the year 2002.
The case is related to payment of big amount $50 million by Deloitte & Touche LLP because of
fraudulent bookkeeping practice made at Adelphia Communication Corporation. As per the
allegation made by Securities and Exchange Commission, Deloitte had failed to comply with all
the audit procedures and standards. The SEC has ordered Adelphia Communications Corporation
to make a payment of civil money penalty of around $25 million pay another $25 million as
compensation amount for the sake of Adelphia shareholders. The auditors of the company
Deloitte failed in complying with the provisions of GAAS and Deloitte paid $50 millions for
settling the case.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1...................................................................................................................................................1
2...................................................................................................................................................1
3. Investigating and explaining the issues in Auditing and assurances which were raised in the
case..............................................................................................................................................1
4 Determining the root cause of the issues in the present case..................................................3
5. The mistakes or misrepresentations made by Deloitte resulting in warding of damages and
a judgement against the audit firm.............................................................................................3
6. Recommendations on the improvements of the audit strategy and the program....................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7