fraud vectors aiming at identifying appropriate prevention actions. The author focuses on the internal audit role in fraud prevention‚ identification and investigation. Our research results conclude on means of improving fraud risk monitor and prevention‚ providing suggestions for proactive approaches in control processes’ improvement. Keywords: fraud‚ fraudulent financial reporting‚ red flags‚ internal audit JEL classification: M42‚ G34 1. INTRODUCTION Studies on accounting field have showed
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LBJ Company: Internal Control Evaluation Accounting 504: Managerial Use & Analysis Case Study 2 Written by: 8/10/13 This evaluation is being presented as an assessment of the preparedness of the LJB Company to go public at a future date. By researching current regulations regarding publicly traded firms we hope to prepare for a smooth transition into the trading market. The Sarbanes-Oxley Act of 2002 (SOX) has established the following guidelines
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probability from high to low: Followed by Vandalism: 0.65; Brownout: 0.40; Power surge: 0.40; Flood: 0.15; Fire: 0.10; Software failure: 0.10; Equipment failure:0.08. Embezzlement:0. 05. Based on the probability‚ Estimated loss situation range Control cost In order to prevent that (Solutions): Vandalism 1‚000-15‚000 8‚000 1. Give limited people to access the data. (set up authorizations.) Make sure only people who needs what information and who have rights to edit what information. 2. Change the
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to information we’ve obtained from understanding of company background and during audit field work we identified some issue and company control risk related to the follow areas: * Segregation of Duties * Lack of Internal Control - Lack of control on main production for the company. - Lack of control in accounting records procedure - Lack of control in handling and recording accounts receivable *
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on prospective information or pro forma information‚ accountants must do all of the following except: B. Understand the internal controls used in the processes that generated the information A.20 If a nonissuer wants an accountant to perform an examination of its internal controls‚ the accountant should follow: B. AICPA AT 501‚ “An examination of an entity’s internal control over financial reporting that is integrated with an audit of its financial statements.” A.21 A review service engagement
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272). Accounting Information Systems is a fundamental part of determining the success of an organization. An effective information system provides Internal controls which consist in policies and procedures implemented by a company to allow managers to monitor and control business activities. The Bible could be compared to an organization’s Internal Controls in the sense that it is the Holy and infallible Word of God for human kind and it was meant to “provide guidance‚ to teach‚ to rebuke‚ to discipline
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TABLE OF CONTENT Items | P.No | 1. Introduction: corporate governance | 2 | 2. Introduction: selected companies | 3 | 3. Analysis of the two companies on the practice of corporate governance | 4 | 4. Application of corporate governance (detail review) - Malayan Banking berhad | 7 | 5. Application of corporate governance (detail review) - Public Bank Berhad | 15 | 6. Conclusion | 22 | 7. References | 23 | 8. Appendix: a. The Malaysian Code on
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Chapter 11 Fraud Auditing Review Questions 11-1 Fraudulent financial reporting is an intentional misstatement or omission of amounts or disclosures with the intent to deceive users. Two examples of fraudulent financial reporting are accelerating the timing of recording sales revenue to increased reported sales and earnings‚ and recording expenses as fixed assets to increase earnings. 11-2 Misappropriation of assets is fraud that involves theft of an entity’s assets. Two examples are an accounts
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AUDITING THEORY 8. Which of the following should an auditor do when control risk is assessed at the maximum level? A. Perform fewer substantive tests of details. B. Perform more tests of controls. C. Document the assessment. D. Document the internal control system more extensively. 9. Which of the following is least likely to be a test of a control? A. Inquiries of appropriate personnel. B. Inspection of management’s engagement letter. C. Observation of the application of a policy. D.
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internal control over financial reporting c a S eS inc lu de d in t hiS Se ction 5 155 155 165 169 177 185 195 5.1 Simply Steam‚ Co. 5.2 Easy Clean‚ Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation of Internal Control Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation of Internal Control Environment . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Red Bluff Inn & Café 5.4 St. James Clothiers Establishing Effective Internal
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