The past audit activities of the organisations are mainly focused more on safeguarding and preventing the fraud and taking corrective measures for errors. The main reason for this action on the part of Audit department is that fraud affects negatively an economy, by causing great financial losses, also weakens the social stability, raise threatening signs to democratic and company structures. The fraud brings loss of trust on employee by the management and shareholders. So, the fraud prevention and corrective actions against the fraudulent activities are the main solutions.
Now-a-days, the shareholders, the board of administration are instructing Audit departments to concentrate more on the purpose of doing fraud and protect their interest and wealth because the shareholders are the ultimate beneficiary of all business activities of the organization.
The fraudulent activities takes place in an organisation to swipe-off the sales or cash of the organization. These activities of taking-away or fraud-on the company’s assets will ultimately affects the shareholder’s wealth and brings loss to the company which reduces the income attributable to the shareholders. So, Audit department has been taking steps which will not allow the wrong persons to do any fraud in the Cash or most liquid assets like inventory, stores, debtors, etc. The accounting systems are so formulated that any fraud will be detected at the time of occurrence. The auditors catches the fraud and present the same to the Board of Directors/Shareholders to decide about the penalties and punishment to the culprit.
Do you think auditing in the past Focused more on safeguarding and prevent fraud and corrective...
Do you think a lot of fraud goes uncovered with the SEC?
"Attacking Fraud" Think about a company where you have worked that had a case of employee theft or fraud. (If you do not know of such a company, research online for a case of company theft or fraud.) Please describe the fraud. Your description should include an analysis of the discovery, time period required for the discovery, and factors in the fraud triangle contributing in the fraud. Recommend the policies, procedures, and controls necessary to prevent this type of fraud...
"Attacking Fraud" Think about a company where you have worked that had a case of employee theft or fraud. (If you do not know of such a company, research online for a case of company theft or fraud.) Please describe the fraud. Your description should include an analysis of the discovery, time period required for the discovery, and factors in the fraud triangle contributing in the fraud. Recommend the policies, procedures, and controls necessary to prevent this type of fraud...
Do you think operations management is more or less important than in the past and why? Provide evidence and citations from websites. Please underline key terms.
Do you think that there is more or less communication between people than there was before life revolved around technology? Is it helpful that things are so automated or does it hinder progress? Think about it--do you feel more focused or less focused in school than you did ten years ago? Is it because of technology? Is it because society's acceptable means of communication have evolved? Is it better or worse?
How do you think fraud risk assessments can help deter and detect fraud within an organization? (150-200 word response)
Do you think that the importance of adhering to accounting and auditing standards is fully embraced by governmental entities, why or why not?
Explain the Sarbanes Oxley Act. Do you feel that embracing an act like this would prevent fraud? Why or why not?
1) In the WorldCom scandal do you think Bernie Ebbers knew about the fraud when it was happening? explain your answer 2) If Bernie did know do you think his sentence is fair?
How do you think that the selection of the appropriate preventative, detective and corrective controls applied in a specific situation or business operation should be guided by factors such as the legal obligations of the business, the contractual obligations of the business, the internal culture of the business and the costs of implementing each specific control versus the benefits derived from that control in terms of things such as dollar savings, legal or contractual compliance, goodwill or reputation.