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1. What type of fraud do you consider to be most damaging to an organization? 2. Of the analysis of control procedures, which do your prefer? Explain. 3. How can mergers and acquisitions impact accounting information systems?

1. What type of fraud do you consider to be most damaging to an organization?
2. Of the analysis of control procedures, which do your prefer? Explain.
3. How can mergers and acquisitions impact accounting information systems?

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1. What type of fraud do you consider to be most damaging to an organization?

Fraudulent financial reporting is the most damaging to an organization. They include financial reporting undertaken to render financial statements to mislead third parties. This is also called management fraud, and misappropriation of assets, sometimes called defalcations. Companies that issue fraudulent financial statements generally engage in related-party transactions, have founders that still exert major influence over the company, employ fewer CPAs or exhibit a history of illegal violations.

SEC classifies these violations into three categories:

- Revenue recognition, including fraudulent reporting of fictitious sales, inaccurate timing of revenue recognition, and improper valuation of revenue.

- Expense recognition, consisting of including improper capitalization or deferral of expenses, incorrect use ...

Solution Summary

A paragraph explain each of the three questions and three references are provided.

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