Dickinson Technologies Case Study

1568 Words 7 Pages
Register to read the introduction… Presence of Board of Directors, Audit committee, Board’s compliance with the SEC’s Blue ribbon committee, independent and experienced board members, management’s oversight and audit committee’s annual review’s leaves very less room for opportunity for employee’s to commit any type of fraud and present misstated financial information.

Performance evaluation based on the behavioral criteria, management’s stress on integrity and ethical behavior, employee’s awareness of the consequences of failing to fulfill their responsibilities are few of the major points which leave employees with no rational explanation for their misconduct. So, in case of Dickinson Technologies, I would say that the employees are not inclined towards misstating the financial information and thus the risk of fraudulent financial reporting in this case is very low.

B. Misstatement arising from misappropriation of
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The reason behind my is assessment is that even though the controls are in place and most of the controls are exercised properly, still there is high potential for fraud. Merely because of the high risk of misstatement arising from misappropriation of assets is prevailing in this case, the overall risk of fraud also increases. Though there is very negligent risk of fraudulent financial reporting in this case but the discussion above suggests that the risk due to misappropriation of assets cannot be neglected. The company has all the controls in the place but the senior management is not paying much attention to the quality of work done by the supervisors and they are usually not involved in day-to-day activities. Also the assessment of effectiveness of policies has never been

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