a.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: The importance of internal control in an organization.
b.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: The way in which internal control help in achieving reliable financial reporting.
c.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: The need for external auditors to be aware of internal control over financial reporting of its client.
d.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: Internal control over financial reporting and its components.
e.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: Segregation of duties comes under which type of control and the risk it tries to reduce.
f.
Introduction: Internal control is an important part of every organization. It helps in maintaining the efficiency of the management. It is a policy used by the management to avoid fraudulent behavior and increasing accountability in the organization.
To state: The control activities C company would have implemented in order to prevent the fraud.
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Auditing: A Risk Based-Approach (MindTap Course List)
- Internal control is said to be the backbone of all businesses. Which of the following is the best description of internal controls? A. Internal controls ensure that the financial statements published are correct. B. The only role of internal controls is to protect customer data. C. Internal controls and company policies are important to protect and safeguard assets and to protect all company data and are designed to protect the company from fraud. D. Internal controls are designed to keep employees from committing fraud against the company.arrow_forwardWhich of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond ones means D. lack of an internal audit functionarrow_forwardWhich of the following is not a purpose of internal controls? Guarantee profits Protect assets Adherence to company policies Make fraud more difficult Accurate accounting recordsarrow_forward
- How can accounting information systems aid in the prevention of fraud? Do legislative activities such as the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act of 2002 really aid in the prevention of accounting fraud? Justify your answer.arrow_forward1. How do organizations create a culture of honesty, openness, and assistance? 2. What are different ways in which companies can eliminate opportunities for fraud? 3. What is the purpose of adopting a code of ethics throughout a company? 4. Why are good internal controls important? 5. In what ways can organizations discourage collusive fraud?arrow_forwardManagement fraud (fraudulent financial reporting) is not the expected norm, but it happens from time to time. In the United States, several cases have been widely publicized. They happen when motives and opportunities overwhelm managerial integrity.a. What distinguishes management fraud from a defalcation?b. What are an auditor’s responsibilities under auditing standards to detect management fraud?c. What are some characteristics of management fraud that an audit team should consider to fulfill the responsibilities under auditing standards?d. What factors might an audit team notice that should heighten the concern about the existence of management fraud?e. Under what circumstances might an audit team have a duty to disclose management’s frauds to parties other than the company’s management and its board of directors?arrow_forward
- Appraise the motivation of senior management (CEO and/or CFO) to commit financial statement fraud and how they go about to do so? Elaborate.arrow_forward(Section 401) How does this section relate to the Enron fraud? (Section 404) How do the management assessment and auditor attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations?arrow_forwardResearch a company that had a fraud event happen due to inadequate accounting procedures. Review the fraud event that happened in the company in detail and identify at least two accounting control procedures that were deficient in this event. Propose an internal control system that would have eliminated the fraud, using the ERP system.arrow_forward
- Funds are embezzled from a company, what type of fraud was committed and describe the symptoms of fraud that might be evident to an investigator?arrow_forwardWho are the professional organizations who are in charge of fraud auditing? Birefly elucidates.arrow_forwardMany acts such as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, and concealment have been used to describe the term fraud. Discuss the five (5) ethics in financial management.arrow_forward
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