In comparing services that auditors provide, you will notice a variety of both services and topics they cover. The last slide above in the Audit PowerPoint gives factors that contribute to fraud in companies. Notice that since the Sarbanes-Oxley Act in 2001, fraud from lack of internal controls has decreased dramatically. However, collusion between employees and among third parties has increased considerably. What could be factors causing this collusion? How should management address this issue? Are there any audit tools that will help? 100 words please.
While it is widely believed that greed is the factor that causes individuals to engage in collusion and commit fraud, collusion between employees and third parties is also a matter of motive, opportunity and even financial pressure. An unsatisfied employee who feels they are being treated unfairly or not being compensated adequately may feel motivated to participate ...
The following posting answers questions regarding relationships of audits.