Extraordinary Circumstances: The Journey of a Corporate Whistleblower. The following excerpts from the book describe the actions she took to uncover the fraud at WorldCom and reactions of key players in the accounting department‚ top management‚ the audit committee and the external auditors. Cooper was first alerted to the fact that there may have been a problem with capital expenditures when she read an article called “Accounting for Anguish” that appeared in the Fort Worth (Texas) Weekly on May
Premium Auditing Internal audit Audit
spheres * A statement by the audit committee to the board and shareholders on the effectiveness of internal financial controls to be included in the integrated report * The consideration of the strategic role of IT and its importance from a governance perspective * The positioning of internal audit as a strategic function that conducts a risk-based internal audit and provides a written assessment of the company’s system of internal control‚ including internal financial controls * The
Premium Internal control Corporate governance Shareholder
government‚ and (indirectly) all individuals who are ultimately affected by the integrity of the financial reporting process. 1-2. The audit opinion formulation process is a systematic approach by which the auditor evaluates the risk of being associated with a client‚ through the process of gathering and evaluating audit evidence‚ to determining the type of audit opinion that should be rendered. The stages and outcome of each stage are as follows: Assessing Client Acceptance and Retention: The
Premium Auditing Audit Internal audit
Enhancing Asset Protection through an adequate monitoring of internal control system by internal audit. By Danique Channer (ID # 0908607 SOBA) November 12‚ 2012 Lecturer: Ms. Simone Bewry Summary of Article Since the start of the global economic recession there has been a reduction in the ablity of organization’s to acquire assets for business operations therefore increasing the need for asset protection against fraud. Studies have shown
Premium Internal audit Internal control Auditing
12-8. a. using the Figure 12-11 information‚ develop a risk assessment for the Espy Company. These are the risk assessment in the order of 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
Premium Internal control Accounts receivable Audit
Hollate Manufacturing Case Study About this case study: This case study was developed as a joint effort by the Center for Audit Quality‚ Financial Executives International‚ The Institute of Internal Auditors‚ and the National Association of Corporate Directors. These four organizations have formed the Anti-Fraud Collaboration to actively engage in efforts to mitigate the risks of financial reporting fraud. The Collaboration’s goal is to promote the deterrence and detection of financial reporting
Premium Auditing Audit Internal audit
L Inc.’s internal control over financial reporting as of December 31‚ 2012‚ based on control criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of Treadway Commission (COSO). L Inc.’s management is responsible for maintaining effective internal control over financial reporting‚ and for its assessment of the effectiveness of internal control over financial reporting‚ included in the accompanying Management’s Report on Internal Control
Premium Auditing Internal control Internal audit
risk……………………………………………………………………. Internal risk………………………………………………………………………. External risk……………………………………………………………………… Cadbury code…………………………………………………………………………….. Control system and procedure ………………………………………………………….. Types of fraud……………………………………………………………………………. Detection and implication for the fraud………………………………………………… Introduction to audit…………………………………………………………………….. Right and duties of the auditor…………………………………………………………. Liability of the auditor…………………………………………………………………… Internal audit and external audit………………………………………………………
Premium Auditing Financial statements Internal audit
criteria for a financial statement audit? For an internal audit? The assurance criteria are completeness‚ authorization‚ accuracy‚ timeliness‚ occurrence and efficiency. Financial statement auditors are concerned about completeness‚ authorization‚ accuracy and occurrence equally. They are less concerned about timeliness; if timeliness affects the year end‚ it becomes a completeness issue. Financial statement auditors are not concerned about efficiency. Internal auditors are concerned about all
Premium Auditing Audit Internal audit
wise for Ramos to investigate further into the matter. She should perform necessary audit procedures and collect all possible evidence to resolve problem. First of all‚ Ramos should start with Koster as she is the one who brought up the issue she had with the management. She also implied what seems to be a fraudulent act was exercised by some of top employees of the company. Koster
Premium Internal audit Auditing Financial audit