External auditor

Dage Michael Martinez Fraud Auditing May 1, 2016 Fraud Audit Program: Hollate Assess: Fraud: Type/Scheme Control Opportunity Occurs/Fraud Scenario Concealment Red Flags Conversion Journal Entry Scheme The scheme likely occurred due to management override of controls. Strengthen controls to discourage management override may prevent this from happening again. CFO is creating journal entries to increase company inventories and decrease costs of goods sold. Internal audit team was required to…

With respect to the Enron case, there were initially two red flags leading to the fraud that should have been noted and thoroughly reviewed: (1) Enron and other corporations previously pressed for deregulation of the energy industry, and (2) lack of monitoring the industry and corporation practices by the government after deregulation (Albrecht. Fraud Examination, p. 431). After the deregulation of the industry, many corporations were, more or less, free to do as they please, which provided the…

between senior management and internal audit in New Zealand context. The method of Case Study will be conducted for this research; five to six different sizes companies will be selected as case study samples. Semi-structured interviews to internal auditors will be conducted for each company, also the senior management members (such as CEO, CFO) will be interviewed. Conjoint with semi-structured interview, review of the internal audit policies and procedures as well as internal audit records…

private companies are not exposed to the strict rules and regulations associated with the Sarbanes-Oxley Act and may not have the appropriate amount of fraud prevention and detection in place. Therefore, creating an audit committee and extending external auditor responsibilities help to embark on a more seamless business process within the company. There are lots of costs associated with this new business venture which impact the newly required roles to ensure compliance with SOX regulations.…

The purpose of this report is to explore three major corporate scandals with regard to their irresponsible ethical behaviour and the lessons that can be learned from each. The three companies examined in this report include Tyco International Ltd, HealthSouth Corporation and Nimble Pty Ltd. Results of this report show that corporate scandals occur periodically and can have an effect on other companies with the first scandal occurring in 2002 by Tyco and then followed by HealthSouth in 2003 and…

internal blinders that hides empathy from the external consequences he contributes to. Patrick Finn, the CFO of Phar-Mor, was also a main stakeholder reporting to Monus about the losses, succumbed to the confidence of Monus and compensated his own values for the profit…

corporate culture and style of the corporate governance (p. 353). The internal audit function is the element and tool of the corporate governance. The Committee of the Sponsoring Organizations of the Treadway Commission (COSO) and Institute of Internal Auditors (IIA) provide a detailed guidance on the implementation of internal control. The effective internal control function and the ethicalness of accounting processes generate ethical financial decisions and reliable financial reporting (pp.…

Evaluating Cost Reductions PPC is a small public plastics manufacturing organization which. The organization first became a publicly listed organization three years ago, and has experienced a large impact of the recent recession. The organization has taken several steps within the past year to reduce costs. The question has arisen as to whether said cost reduction actions are an operation issue or a control deficiency, of if said cost reductions are a material weakness or a significant…

not have proper/up to date documentation on each employee, Katie successfully carried out her scheme. If Aramis would do quarterly employee reviews carried out by their HR department, these fictitious employees could have be caught. Adding internal auditors to check for any irregular spikes or drops in the accounts payable in relation to the amount need to pay the employees (salaries and wages), they could have investigated the issue causing this rise, detecting the crime. Fleming could have…

David’s auditor states that “the wicked bend the bow, / they have fitted their arrow to the string,” (Psalms 11:2). In this verse the bow and arrow relates to the martial threat that the “wicked” present to the Israelites. The enemy is not meant to be seen as idle…