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Auditing Techniques, Methods and Real Life Examples

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 services.

The financial forensic investigation techniques and procedures used within an organization (in-house) or from a professional contracted service firm can come about in different ways. For example, some forensic techniques for analyzing financial statements are common for financial auditors, fraud auditors, or forensic accountants and investigators. Other techniques, such as using behavior detection methods and interviewing methods, are primarily used in specific fraud investigation engagements.

Support your answers with 2 academic or real-life criminal justice examples to accentuate your point.

Research and locate a company that was audited by an outside source and explain the method, technique, and findings of an audit.

Do you think that it is a wise investment to contract services that provide security against fraud or should it be an in-house department that provides fraud security services?

Include additional information that you think is appropriate or interesting concerning ethical or unethical business behavior.

Solution Preview

UMC FBI Investigation of HIPPA Violation

More than 100 people have been notified by University Medical Center that their personal information might have been compromised and the center has suspended six of its staff members under this charge and also for their casual treatment of a pregnant woman looking for help in the emergency room.

Under the investigation it came out that Roshunda Abney, 25, was ignored for so long at the hospital that she went home and gave birth to a premature baby that later died. Others who were in the waiting room supported Abney and her fiancé that they were ignored for several hours until they finally left (HIPAA Compliance Journal, 2008).

In response to the second investigation, UMC sent out more than 100 notification letters letting people know their personal information might have been illegally shared with others. The 100 letters sent out notify 71 patients who used the hospital's Trauma Center Oct. 31 or Nov. 1 and people who accompanied the patients and provided personal information to the hospital. Those getting the letters have been offered free credit monitoring for a year as compensation. A second letter will be sent in the next couple of days explaining how to use the service now that the contract is complete (HIPAA Compliance Journal, 2008).

The FBI has launched an investigation into the violations of the federal Health Insurance Portability and Accountability Act, (HIPAA) - which includes penalties of up to $250,000 in fines and 10 years in jail. "The FBI feels that they have made some progress in the investigation - they don't exactly keep us daily updated - but we do ...

Solution Summary

Many corporations are subjected to internal audits as well as fraud investigations. In this document we explore auditing followed by two real world examples of its impact in 981 words with 2 references.

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