Error versus Fraud in Accounting

Related BrainMass Solutions

• Describe the five elements of accounting internal control

  Control procedures (ensuring that procedures minimize risk of fraud or error) 4. Monitoring (review of activities to detect signals that might be fraud or error) 5.

• I agree that "discovering fraud is difficult for auditors."

  The CFE trains the individual to detect fraud on many levels - through accounting information, through computer systems, and other resources.

• Effects of accounting transactions on incoe and taxible resu

  This problem anaylzes the effects of various accounting transactions of net income and tax liability, and whether these transactions are acceptable, error or fraud.

• Discuss the finance and investment cycle

  For example, if revenues are unintentionally misstated and misrepresented to the market, it is considered an accounting error and not accounting fraud.

• Common errors in accounting systems

  Controls include reconciliations (bank, AR, AP), review of comparative data for anomalies, balancing features of systems, and error reports issued by accounting programs.

• Auditing Responsibility for Illegal Act

  An auditor should obtain any necessary financial documents to determine whether the potential act is error or an illegal act. What barriers do you see in terms of your ability to accurately uncover fraud?

• An accounting estimate is an approximation of a financial st

  Accounting estimate fraud is one of the most difficult areas to detect fraud in, because of the somewhat unstable nature of accounting estimates.

• Forensic Accounting Fraud Investigator

  609323 Forensic Accounting Fraud Investigator 1. If you were the fraud investigator, would you use "gut instinct" if something appeared true? 2. Respond to the following statement.

• Disconnect between GAAP and public companies vs. private.

  Fraud, errors, omissions, and many material misstatements can take place. These can be either intentional (fraud) or unintentional (someone just didn't follow GAAP in preparing the accounting records, finance documents, etc. for the company.