Explore BrainMass

Discovery of fraud in an audit

As an auditor for Franken's Markets you have discovered fraudulent activities. In your previous discussions with management, no one with the Franken organization identified fraudulent behavior or activity and any questions related to such matters were met with defensive behavior. How would you address this situation?

About 200 words, one reference.

Solution Preview

If Franken Markets became defensive after I discovered fraudulent activities, and they acted defensive thereafter, I would first contact my superior to advise them of the possible fraudulent activities. Thereafter, I would gather any and all information that would be required to identify the potential risks of the suspected fraud.

The auditor should then sit down with Franken executives and discuss with them the possible ...