[SOLVED] Jack Nicklaus electrified sports fans worldwide in

Jack 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 of 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. (GBI), the private company that over-saw the famous golfer’s many business interests, mustered the courage to approach his employer. Bellinger told Nicklaus that his company was on the verge of bankruptcy. Nicklaus, who had allowed subordinates to manage his company’s operations, was startled by the revelation. In a subsequent interview with the Wall Street Journal, Nicklaus admitted that after a brief investigation he realized that he had allowed his company to become a tangled knot of dozens of unrelated businesses. “We were an accounting nightmare … I didn’t know what any of them did and neither did anyone else.” 1Nicklaus immediately committed himself to revitalizing his company. The first step that he took to turn around his company was naming himself as its chief executive officer (CEO). Nicklaus then placed Bellinger in charge of GBI’s day-to-day operations. Within a few years, the two men had returned GBI to a profitable condition by focusing its resources on lines of business that Nicklaus knew best, such as golf course design, golf schools, and the licensing of golf equipment.
In the late 1990s, Jack Nicklaus once again found himself coping with an “accounting nightmare.” This time, Nicklaus could not blame himself for the predicament he faced. Instead, the responsibility for the new crisis rested squarely on the shoulders of two of Nicklaus’s key subordinates who had orchestrated a fraudulent accounting scheme that jeopardized their employer’s corporate empire.
Player of the Century
Jack Nicklaus began playing golf as a young boy and had mastered the game by his mid-teens. After graduating from high school, the golf prodigy accepted a scholarship to play collegiately for Ohio State University in his hometown of Columbus. At the age of 21, Nicklaus joined the professional golf tour and was an instant success, racking up more than one dozen victories within a few years.
Shortly after joining the professional golf tour, the business-minded Nicklaus realized 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 Arnold 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 “Arnie’s Army” tracked Palmer’s every move during a tournament. Palmer’s popularity with the public translated into a series of high profile and profitable endorsement deals. On the other………………………
1. Professional auditing standards identify the “management assertions” that commonly underlie a set of financial statements. Which of these assertions were relevant to Paragon’s construction projects? For each of the assertions that you listed, describe an audit procedure that Arthur Andersen could have employed to corroborate that assertion.
2. The SEC referred to several “audit failures” that were allegedly the responsibility of Michael Sullivan. Define what you believe the SEC meant by the phrase “audit failure.” Do you believe that Sullivan, alone, was responsible for the deficiencies that the SEC noted in Andersen’s 1997 audit of Golden Bear? Defend your answer.
3. Sullivan identified the 1997 Golden Bear audit as a “high-risk” engagement. How do an audit engagement team’s responsibilities differ, if at all, on a high-risk engagement compared with a “normal” engagement? Explain.
4. The AICPA has issued several Audit and Accounting Guides for specialized industries. Do auditors have a responsibility to refer to these guides when auditing clients in those industries? Do these guides override or replace the authoritative guidance included in the professional auditing standards?
5. Was the change that Paragon made in applying the percentage-of-completion accounting method a “change in accounting principle” or a “change in accounting estimate”? Briefly describe the accounting and financial reporting treatment that must be applied to each type of change.

Question: Jack Nicklaus electrified sports fans worldwide in