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    Fraud and Earnings Management

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    Franken's Markets: Fraudulent Activities Found during 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 relating to such matters were met with defensive behavior. How would you address this situation?

    Auditing: fraud, controls, segregation, confirmations

    1. When auditing with "fraud awareness," auditors should especially notice and follow up employee activities under which of these conditions? A. The company always estimates the inventory but never takes a complete physical count. B. The petty cash box is always locked in the desk of the custodian. C. Management has publi

    Auditing/Acct

    REQUIRED: 1.Discuss what lapping means. What procedures can auditors employ for its detection? 2.What is a cutoff bank statement? How are they used by auditors? 3.What is check kiting? How might auditors detect kiting?

    Auditing payroll cycle

    What are the common errors and frauds in the personnel and payroll cycle? Which control characteristic are auditors looking for to prevent or detect these errors and frauds? What features of the payroll system could be expected to prevent or detect payment of a fictitious employee? What about the omission of payment to an emp

    Financial Statement Audit

    Fraud audits involve 100% examinations while financial statement audits require samples. Why do you think this is? See the attachment.

    Insider trading

    Jack and diane are married and both executives at a large multinational electronics company. The couple holds substantial company stock and the majority of their retirement funds depend on the company stock performances. Jack is a director within the marketing division, and diane is a vice president in charge of all north amer

    Audit and Common Fraud

    If some frauds are deemed common, should auditors be held liable if they do not find a common fraud? Why or why not?

    Auditing Questions About Control and Fraud

    1. What would you consider to be important controls over cash at your organization? 2. Given the increased emphasis on corporate fraud, should auditors be required to look aggressively for fraud factors like collusion, circumvention and management override? Why or why not?

    Auditing Questions

    How can a purchasing manager use his/her position to defraud the company? What can be done to prevent it? Where could an auditor look to find evidence of losses on purchase commitments and unrecorded liabilities to vendors? Many companies use the computer to generate purchase orders. Who is responsible for authorizing a purch

    Fraud in Auditing

    What is meant by the formula: Fraud = f (incentive/pressure, opportunity, attitude/rationalization)?

    Responsibilities of auditors in a new engagement with suspected fraud.

    Post, CPA, accepted an engagement to audit the financial statements of General Company, a new client. General is a publicly held retailing entity that recently replaced its operating management. In the course of applying auditing procedures, Post discovered that General's financial statements may be materially misstated due to t