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17 Cards in this Set
- Front
- Back
Computer Crimes – Define
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All types of defalsifications (embezzlements) accomplished by tampering with computers hardware and software.
Can be equipment, programs, operations, data files |
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Computer Crime - Incentives
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Large intake per crime
Detection difficulties Lengthy and costly prosecution procedures Doubtful prosecution outcome Weak punishment |
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Major causes of financial crimes
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Lack of ethics
Social and political problems Inadequacy of accounting & auditing education and training Managerial incompetence Connections with organized crime |
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Major types of controls
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CONTROLLING SOURCE
-Public Source -Governmental Source -Private Source FUNCTIONAL SOURCE Internal Controls External Controls Overall Controls |
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Major types – Detection of Financial Crimes
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Personal techniques
Organizational techniques Computer (EDP) techniques Fraud investigations Financial statements analysis |
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Detection of Financial Crimes – Personal techniques
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Criminal record
Living beyond personal financial means Involvement in unaffordable investments Shifty eyes High personal debts Extensive gambling Excessive use of alcohol and drugs Personal problems Too close association with consumers, suppliers, and financiers Extensive overtime Skipping vacations Excessive sick leaves Questionable background Unjustifiable attempts to change the operating systems Regular borrowing from fellow employees |
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Detection of Financial Crimes – Organizational techniques
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-Insufficient working capital
-High turnover in financial positions -Constant change of external auditors -Unjustifiable use of sole-suppliers -Excessive traveling costs -Unjustifiable transfers of funds between affiliated companies or divisions -Excessive payment of consulting and legal fees reported conflits of interest continuous centralization of management controls collection difficulties unjustified number of bank accounts late reports violation of operating policies, rules, and regs suspended accounts |
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Detection of Financial Crimes – Organizational techniques
Financial Crimes Prevention Techniques (Exam) (10) |
-Efficient Personnel Management Practice
-Proper financial planning and control -Selection of honest and competent senior executives -Implementation of adequate cost accounting systems -Implementation of integral internal audits -Hiring competent internal and external auditors -Proper coordination between the internal and external auditors -Periodic review of policies, plans, programs, and procedures -Implementation of integral security and investigation systems -Utilization of the professional services of independent consultants. |
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Internal operational auditing of non-profit organizations – Strategic areas
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Operating goals
Financial management Accounting records Accounting practice General managerial skills and achievements |
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Major types of governmental organizations
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FEDERAL
Executive Organizations -White House -Federal Depts, agencies, projects Legislative Organizations -Congress Judiciary Organizations -Supreme Courts -Federal courts STATE Executive Organizations -Governorships -State Depts, agencies, projects Legislative Organizations -States Congress Judiciary Organizations -States Courts |
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Governmental & Private Organizations Contrasted
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-Governmental has Exec., Leg., and Jud. Branches which Private just has Board of Dir.
-Services for Citizens vs. Stockholders |
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Major types of Governmental Audits
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Financial and compliance audits
Efficiency and economy audits Program results audits Management audits |
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Define Financial and Compliance Audits
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Conducted by federal agencies that aim to
evaluate the compliance of accounting, auditing and managerial practices with the requirements of professional standards and relevant laws, rules, and regulations |
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Define efficiency and economy audits
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Conducted by federal agencies that aim to
evaluate the operational efficiency of American corporations and governmental agencies. |
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Define program results audits
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Operational audits conducted by the general accounting office that aim to measure the attainment of federal programs goals and to report on related findings and recommendations.
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Define management audits
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Audits conducted by concerned federal agencies that aim to evaluate the performance efficiency of corporate and governmental executives.
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New trends in governmental auditing
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Utilization of advanced auditing techniques
Reliance on other auditors Enforcing multiple reporting levels Implementing on-line auditing Increased responsibility for timely corrective actions Training and professionalism |