Define employee involvement and participation and identify the two major forms of employee involvement.

Accounting by Geoffrey

Read the Case 7.1 Ligand Pharmaceuticals in the Knapp casebook

Prepare and submit a 2-3 page paper analyzing the Ligand Pharmaceuticals case.

  • What went wrong in the auditor’s risk assessment procedures?
  • Which of the three methods for substantively testing the estimate did the auditor choose?
  • What could or should the auditor have done differently?

the standard should be used for this case + reading that on the attachment

  1. PCAOB AS 2501: Auditing Accounting Estimates, including Fair Value Measurements
  2. AICPA Statement on Auditing Standards No. 14