Answer question 4 please, posted in last attachment. CASE 2.2 Golden Bear Golf,
ID: 2523881 • Letter: A
Question
Answer question 4 please, posted in last attachment.
CASE 2.2 Golden Bear Golf, Inc lack Nicklaus electrified sports fans worldwide in 1986 when he won the prestigious Masters golf tournament at the ripe old age of 46. Over the previous several years, the Golden Bear had been struggling to remain competitive with the scores of talented young players who had earned the right to play in the dozens ol golf tournaments sponsored each year by the Professional Golfers Association (PGA) Regaining his golden touch on the golf course was not the only challenge that Nicklaus faced during the mid-1980s. In 1985, Richard Bellinger, an accountant employed by Golden Bear International, Inc. (GBD, the private company that over saw the famous golfers many business interests, mustered the courage to a his employer. Bellinger told Nicklaus that his company was on the verge of ban ruptcy Nicklaus, who had allowed subordinates to manage his company's opera tions, wa y the revelation. In a subsequent interview with the Wal Street Journal, Nicklaus admitted that after a briet investigation he realized that he had allowed his company to become a tangled knot of dozens of unirelated businesses We were an accounting nightmare:.I didn't know what any Nicklaus immediately committed himself to revitalizing his company. The f em did and neither did anyone else." that he took to turn around his company was naming himself as its chief executive officer (CEO), Nicklaus then placed Bellinger in charge of GBl's day-to-day opera ons. Within a few years, the two men had returned GBl 1 y focusing its resources on lines of business that Nicklaus knew best, such a urse design, golf schools, and the licensing of golf equipment In the late 1990s, Jack Nicklaus once again found himself coping with an a profitable condition ounting nightmare. This time, Nickl aus could not blame himself for the pr dicament he faced. Instead, the responsibility for the new crisis rested squa on the shoulders of two of Nickla key subordinates who ha estrat a fraudulent accounting scheme that jeopardized their employer's corporat Player of the Century icklaus began playing golf as a young boy and had mastered the game t his midteens. After graduating from high school, the golf prodigy accepted a schol arship to play collegiately for Ohio State University in his Af the age of 21, Nicklau cess, racking up more than one dozen victories within a few years ed the professional golf tour and was an instant suc Shortly after joining the professional golf tour, the business-minded Nicklat ized that winning golf tournaments was not the most lucrative way to profit from his enormous skills. At the time, the undisputed king of golf was Amold Palmer. who endeared himself to the golfing public with his easy smile and affable manner on the golf course. Adoring legions of fans known as Arnies Army" tracked Palmer's every move during a tournament. Palmer's popularity with the public translated into a 1. R. Lowenstein, "A Golfer Becomes an Executive: Jack Nicklaus's Business Education," Wall Street Journal,27 January 1987, 34Explanation / Answer
The Accounting and Auditing Guides are auditing guidance. These are one of the types of interpretive publications issued by the institute.
The auditor has the responsibility to consider these as applicable to their audit. If the auditor does not apply the guidance included in them, then they should be able to explain how they complied with the SAS provisions as addressed in the auditing guidance provided by these guides.
These guides are recommendations on applying the SASs in special/specific circumstances. These are issued under the authority of ASB and are required to be consistent with the SASs.