Forensic Accounting
1. As the auditor, list the concerns you have may suggest fraud, is occurring in the company.
1. Conflicts of interest.
The owner of the company which is Justin Bieber, frequently takes extended vacations with his family and rarely examines the books of his business. He always appoint any of the family members to monitor and take charge the position while he’s not around for business trip and outstation.
2. The participants of the governors are rarely active in managing the direction and strategy of the business compared to other organization.
3. Justin’s’ brother, Freddy which is the chief accountant held majority of a local amateur sports team, which struggled to sell tickets and is facing bankruptcy.
4. Meanwhile Justin’s auntie, Mary Ann the Senior Manager in Human Resource Department always made her own decision without prior opinion and consult with Justin about recruiting and firing employees within the company.
5. Most among of the family members in the organizations held the most important position within the company only hold at least a certificate or diploma in business administration, economics, English literature which are not fitted to the industry of Justin’s business environment which acquire expertise in designing security system for home.
6. The Compliance Unit also are not reliable because the unit is being monitored and lead by Justin’s sister, Rebecca which she only has an education diploma in Fashion that are largely away of the fields of she is currently monitored and she has no knowledge regards the key role of the position at first such the company’s compliance with standards and regulation procedures.
7. The company is hired incompetent employees according to the required position and responsibility since Mary Ann headed the Human Resource Department since the employees is significantly not performed every year through their annual report performance assessment by the supervisor.
8. The company also hires hundreds of students in case
1. Conflicts of interest.
The owner of the company which is Justin Bieber, frequently takes extended vacations with his family and rarely examines the books of his business. He always appoint any of the family members to monitor and take charge the position while he’s not around for business trip and outstation.
2. The participants of the governors are rarely active in managing the direction and strategy of the business compared to other organization.
3. Justin’s’ brother, Freddy which is the chief accountant held majority of a local amateur sports team, which struggled to sell tickets and is facing bankruptcy.
4. Meanwhile Justin’s auntie, Mary Ann the Senior Manager in Human Resource Department always made her own decision without prior opinion and consult with Justin about recruiting and firing employees within the company.
5. Most among of the family members in the organizations held the most important position within the company only hold at least a certificate or diploma in business administration, economics, English literature which are not fitted to the industry of Justin’s business environment which acquire expertise in designing security system for home.
6. The Compliance Unit also are not reliable because the unit is being monitored and lead by Justin’s sister, Rebecca which she only has an education diploma in Fashion that are largely away of the fields of she is currently monitored and she has no knowledge regards the key role of the position at first such the company’s compliance with standards and regulation procedures.
7. The company is hired incompetent employees according to the required position and responsibility since Mary Ann headed the Human Resource Department since the employees is significantly not performed every year through their annual report performance assessment by the supervisor.
8. The company also hires hundreds of students in case
References: 1. Forensic Accounting and Fraud Examination, second edition, William S. Hopwood; Jay J Leiner; George R Young. 2. http://www.anao.gov.au/html/Files/BPG%20HTML/BPG_PublicSectorAuditCommittees/2_5.html 3. http://www.deloitte.com/view/en_CN/cn/services/corgov/ic/iarr/ 4. https://www.aicpa.org/InterestAreas/