1. General Computing Controls
Case 4.2
Waste Management:
General Computing Controls
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2. Waste Management Case Relevant Technical Knowledge
PCAOB AS No. 12 – Paragraph B4
there are specific risks to a company's “internal control over financial reporting resulting from IT. Examples of such risks include reliance on systems or programs that are inaccurately processing data, processing inaccurate data, or both; unauthorized access to data, system and program; Failure to make necessary changes to systems or programs; etc. Such risks could dramatically impact the effectiveness of reliability of financial reporting.”

3. Waste Management Case Relevant Technical Knowledge
PCAOB AS No. 5 – Paragraph #B29
if “general controls are effective and continue to be tested, and if the auditor verifies that the automated application control has not changed since the auditor established a baseline (i.e., last tested the application control), the auditor may conclude that the automated application control continues to be effective.”

4. Waste Management Case Relevant Technical Knowledge
PCAOB AS No. 5 – Paragraph #A4
“References to financial statements and related disclosures do not extend to the preparation of management's discussion and analysis or other similar financial information presented outside a company's GAAP-basis financial statements and notes.”

5. Psychology Literature - How to Best Acquire Knowledge
Feature Repeated Case Experiences with Feedback; and
Teach Technical Concepts within Real-Life Contexts
Consider the following additional cases:
Waste Management: Top-Side Adjusting Journal Entries
WorldCom: The Internal Audit Function
The Baptist Foundation of Arizona: The Whistleblower Hotline

6. Epilogue – Waste Management
Arthur Andersen and WMI paid $220 million to settle shareholder suits
WMI restated earnings, which caused a $6 billion decline in the value of the company shares

7. Epilogue – Waste Management
Top WMI executives were barred from acting as directors of public companies ranging from a few years to indefinitely
Arthur Andersen partners related to the engagement were barred from auditing public companies ranging from 1 to 5 years