Explore BrainMass
Share

Forensic Accounting: Procedure

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. Assume that you are an auditor and as part of your routine audit, you discover a fraud being committed by the accounts receivables manager. The fraud is large enough to have a material impact on the financial statements. How does this finding affect the rest of your audit?

2. Do client departures from GAAP require the auditor to issue a qualified report? Explain.

© BrainMass Inc. brainmass.com October 25, 2018, 3:08 am ad1c9bdddf
https://brainmass.com/business/entrepreneurial-issues/forensic-accounting-procedure-328638

Solution Preview

1. Assume that you are an auditor and as part of your routine audit, you discover a fraud being committed by the accounts receivables manager. The fraud is large enough to have a material impact on the financial statements. How does this finding affect the rest of your audit?

It is the duty of the auditor to detect and report the material misstatements due to fraud. This has been mandated by SAS No. 82. This appears to a fraud arising from misappropriation of assets by the accounts receivables manager. SAS 82 requires the auditor to continuously modify his plan during the audit on the basis of information gathered concerning these factors. The auditor is required to consider forty-one risk ...

Solution Summary

This solution gives you a detailed discussion on Forensic Accounting: Procedure

$2.19
See Also This Related BrainMass Solution

Procedures in Collecting Forensic Evidence

As corporate controller for Apollo Shoes, you are tasked to find and explain any irregularities in the Apollo Shoes Case.
Resource: Apollo Shoes Casebook
Define the process you will use and address the following questions:
What procedures will you use to collect accounting evidence?
What sampling tools and techniques will you use for the examination?
How will you use analytical and inferential tools to evaluate accounting evidence?

Case web address: http://www.mhhe.com/business/accounting/louwers4e/apollo.html

Please cite any references used and follow the template layout attached.

View Full Posting Details