Fraud Audit Case Study

793 Words2 Pages
bulb-icon

Recommended: Impact of whistleblowing in organizations

Fraud Risk Assessment
1. Does the company have formal and regularly scheduled processes to perform fraud risk assessments?
2. Are appropriate personnel involved in the fraud risk assessments?
3. Are fraud risk assessments performed at all levels of the company (ie, at entity level, significant locations or business units, significant account balance or major process level)?
4. Does the fraud risk assessment include consideration of internal and external risk factors (including pressures or incentives, rationalizations or attitudes, and opportunities)?
5. Does the fraud risk assessment also include the identification and evaluation of past occurrences and allegations of fraud within the company and industry? Does it include the evaluations …show more content…

Is the fraud risk assessment designed and operating effectively?
Control Environment
1. Does the company maintain a proper tone at the top? Does the management assess the tone of the organization to determine if the culture encourages ethical behavior, consultation, and open communication?
2. Do the audit committee and the board of directors have sufficient oversight of management's antifraud programs and controls? 3. Does the internal audit function have sufficient involvement in antifraud programs and controls, including monitoring of the effectiveness of antifraud programs and controls, given the size and complexity of the organization? Does the internal audit function report directly to the audit committee? 4. Does the company have a published code of ethics made available to all personnel and does management require employees to confirm that they accept and agree to follow it? Does the frequency of exceptions undermine the code's effectiveness? Does the code of honour comply will all applicable rules and regulations? 5. Does the company have an whistleblower hotline with adequate procedures to handle anonymous complaints and to accept confidential submission of concerns about questionable ac-counting, internal accounting control, or auditing matters? Are tips and whistleblower complaints investigated and resolved in a timely …show more content…

Does the company have formal hiring and promotion standards, including background checks for those employees with influence over financial reporting or involved in the preparation of the financial statements?
7. Does the company have formal and effective training for employees and new hires on issues of fraud, ethics, and the code of ethics/conduct?
8. Does the company respond in a timely and appropriate manner to significant control deficiencies, allegations or concerns of fraud, and violations of the code of ethics/conduct?
9. Does management assess the design and operating effectiveness of the control environment?
10. Does management adequately document its opinions regarding the design and operating effectiveness of the control environment?
11. Is the control environment designed and operating effectively?
Antifraud Control Activities
1. Does management design and implement preventative and detective controls (preventative controls are designed to stop fraud from occurring and detective controls are designed to identify the fraud if it occurs)? 2. Does the company have controls that restrain the misappropriation of company assets that could result in a material misstatement of the financial

Show More
Related

  • Case Study Of Ligand Pharmaceuticals

    797 Words  | 2 Pages

    The specific obligations in this case would include monitor corporate governance activities and compliance with organization policies, and assess audit committee effectiveness and compliance with regulations

    Read More

  • Target Corporation Case Study Financial Management

    657 Words  | 2 Pages

    Target Corporation must also ensure the its accounting procedures prevent fraud occurrence. The most effective method for combating potential fraud is to develop substantive internal accounting policies. For the most part, the company has done a good job in establishing the principles and procedures necessary to prevent material

    Read More

  • Woolex Mills Preventive Controls

    1580 Words  | 4 Pages

    Financial statement fraud makes up a marginal (less than 10%) percentage of occupational fraud cases, but the median loss is significantly higher at $975,000. A fraud scheme occurring over a significant amount of time will likely result in much higher median losses. For example, a fraud scheme lasting more than five years could result in median losses of $850,000. Larger companies are more likely able to implement strong anti-fraud controls due to size and finances, therefore, smaller companies become more susceptible to fraud schemes due to lack of proper preventive controls. Preventive controls include: implementing internal controls, continually updating the company’s Code of Conduct, rotating jobs/duties, and

    Read More

  • Internal Controls and the Sarbanes-Oxley Act

    782 Words  | 2 Pages

    Internal controls are in place to protect entities against theft from dishonest workers and outside predators. They are also an accurate series of checks and balances and are in place to find discrepancies.

    Read More

  • Dhb Case Study

    1216 Words  | 3 Pages

    The audit committee must certify that the company’s auditors are independent. The audit committee must approve all professional services provided to the company by its independent auditors and ensure that auditors do not provide to the company any of the specifically prohibited services identified by SOX, such as bookkeeping services. The audit committee must receive and analyze key items of information from the independent auditors. These items of information include auditors’ analysis of critical accounting policies adopted by the

    Read More

  • Staples Inc. Ethics Program and Code of Conduct

    1049 Words  | 3 Pages

    Since its inception, Staples Inc. has primarily focused on building a culture of integrity where one associate makes one decision and undertakes a single task at a time. However, the effectiveness of such culture will only be enhanced through the development of a code of conduct. Generally, many companies in the office products industry have sought to achieve their respective business goals through developing and establishing code of conduct. However, most of these companies have relatively had ineffective codes of conduct or ethics. For instance, United Stationers Inc., Amazon and Office Depot, which are major competitors, have had ineffective codes of conduct because their ethic standards have been incorporated in corporate governance measures...

    Read More

  • Nt1310 Unit 1

    529 Words  | 2 Pages

    “Fifth, the company should audit the whole process frequently to ensure compli- ance with these procedures.”

    Read More

  • Case Analysis Of Hollate Manufacturing

    721 Words  | 2 Pages

    The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.

    Read More

  • Code Of Ethics Case Study

    1276 Words  | 3 Pages

    The main purpose of this work is to emphasize that the code of conduct has no use if the company does no create an ethical culture. It focuses on how the code of conduct must be created and fostered by the top management including board of directors so employees and other stakeholders follow by lead and don’t think that the higher authority are not practicing what they put out. The intended audience of this blog message was investment professional, people concerned with ethics in the workplace, and the general public who

    Read More

  • Internal Audit Case Study

    1665 Words  | 4 Pages

    The seven best practices in the roles and responsibilities of an internal audit function include:

    Read More

  • Corporate Accounting Fraud

    1084 Words  | 3 Pages

    In today’s day and age, there is a lot of news that is related to corporate accounting fraud as companies intentionally manipulate their financial statements to show a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can show a better image of their financial well being by providing misleading information. This can be done by omitting material information from the books or deceitful appropriation of assets such as inventory theft, payroll fraud, check forgery or embezzlement. Fraudulent financial reporting will have an effect on the This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft.

    Read More

  • Cendant Case Study

    778 Words  | 2 Pages

    Fraud is defined as someone try to act with intention to cheat other people in order to acquire an unfair or illegal advantage. The fraud happens due to management override the internal control of the organisation and fraud will affect the financial reporting. The main categories of fraud that can affect financial reporting are fraudulent financial reporting and misappropriation of assets.

    Read More

  • Ethics Violations in the Workplace

    918 Words  | 2 Pages

    When working for any corporation it is very important, that one reads and understands the company's ethics policy of the company where they are employed.

    Read More

  • Essay On Ethical Competence

    698 Words  | 2 Pages

    Ethics is central for any organization in treating employees fairly and helping the organization advance its mission. There is no single best way for dealing with ethical challenges, but it is very important for managers to develop ethical policies and procedures for implementation. To minimize possible unethical decisions by staff members, it is important to incorporate written standards grounded in organizational values in the code of conduct.

    Read More

  • The Impact Of Accounting Fraud

    1617 Words  | 4 Pages

    The principle territory we are planning to address is accounting fraud and how it could impact an organization by answering, the who, what, when and how. Its goal is to increase the awareness of accounting fraud and fraud counteraction. The intriguing thing about accounting fraud is that little disclosure as a rule usually leads to an enormous increase in fraud. A number of categories and sub-categories can be divided up for fraud.

    Read More

More about Fraud Audit Case Study

Open Document