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Audit and fraud investigation

Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support service.
1. In this discussion, you are encouraged to explore the roles and relationship of audit and forensic service, within an organization as well as within a professional service firm. Search for examples in industry and professional services firms through reviews of Web sites and the literature.
2. Discuss the type roles of audit and investigation in both the organization and professional services firms you identified. Explain the advantages and disadvantages of combing audit and investigation services.

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1. In this discussion, you are encouraged to explore the roles and relationship of audit and forensic service, within an organization as well as within a professional service firm. Search for examples in industry and professional services firms through reviews of Web sites and the literature.

A company's auditing department consists of oversight for financial operations. This is a control against fraud and embezzlement. Auditors examine the records of the day-to-day operations, whether that be employee remuneration accounts, suppliers accounts, or any other financial transactions the company departments are involved with. Sometimes just knowing that the records will be audited is enough to prevent most problems.

The company's forensics department comes into play when irregularities are uncovered by the auditing department. Investigation determines whether the problems with the audit were mistakes, or actual problems, and whether the problems occurred just on paper, or actually translate into lost goods and dollars for the company. Generally, the results of the investigation determine whether there will be consequences for the problem, and whether those problems will be dealt with in-house, or whether civil or ...

Solution Summary

Description of auditing and fraud investigation departments in companies, why these are sometimes combined functions, and why sometimes not.

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