Week 1 Acc556
Internal Accountant’s Report to Management
ACC 556
This report will present the necessary information needed to understand and decide whether to perform a full financial status review before proceeding with the bid. The information covered will include: * The effect of occupational fraud and abuse on the company * U.S. governmental oversight of accounting fraud and abuse and its effect on the company Potential corruption schemes to be aware of in the company
Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review.
Fraud deterrence occurs in several stages, and the key is to know that prevention is not to same as deterrence. First is the impact of controls implementing basic controls such as segregation of duty prevents some forms of fraud. However, internal controls are not exactly linked to deterrence but can assist with prevention.
Another stage is “the perception of detection axiom which is as follows: employees who perceive that they will be caught engaging in occupational fraud and abuse are less likely to commit it” (Wells, 2011, p. 421). There are several constituents that affect this stage coming from both internal and external controls. Internal controls can have an effect on how individual views what controls are in place for exposing fraud. Moreover, external controls are not as easily exposed; therefore these controls do not have an effect on deterrence. An organization can increase perception of detection by making individual aware of the fraud and abuse going on. Informing individual should to be done in a fashion that will not incur more harm than good. To ensure that increase perceive of detection works out for the best an organization should put in place some steps. First educating the employees as they are hired so the employees know the expectations for that organization. The employees should be informed on how fraud directly affects them through
ACC 556
This report will present the necessary information needed to understand and decide whether to perform a full financial status review before proceeding with the bid. The information covered will include: * The effect of occupational fraud and abuse on the company * U.S. governmental oversight of accounting fraud and abuse and its effect on the company Potential corruption schemes to be aware of in the company
Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review.
Fraud deterrence occurs in several stages, and the key is to know that prevention is not to same as deterrence. First is the impact of controls implementing basic controls such as segregation of duty prevents some forms of fraud. However, internal controls are not exactly linked to deterrence but can assist with prevention.
Another stage is “the perception of detection axiom which is as follows: employees who perceive that they will be caught engaging in occupational fraud and abuse are less likely to commit it” (Wells, 2011, p. 421). There are several constituents that affect this stage coming from both internal and external controls. Internal controls can have an effect on how individual views what controls are in place for exposing fraud. Moreover, external controls are not as easily exposed; therefore these controls do not have an effect on deterrence. An organization can increase perception of detection by making individual aware of the fraud and abuse going on. Informing individual should to be done in a fashion that will not incur more harm than good. To ensure that increase perceive of detection works out for the best an organization should put in place some steps. First educating the employees as they are hired so the employees know the expectations for that organization. The employees should be informed on how fraud directly affects them through
References: Louwers, T. J., Ramsay, R. J., Sinason, D. H., & Strawser, J. R. (2011). Auditing & Assurance Services. (4th ed.). New York: McGraw-Hill. Mulford, C. W., & Comiskey, E. E. (2002). The Financial Numbers Game: Detecting Creative Accounting Practices. New York: Wiley. Silverstone, H., & Sheetz, M. (2007). Forensic Accounting and Fraud Investigation For Non-Experts. (2nd ed.). Hoboken, NJ: Wiley. Singleton, T. W., Singleton, A. J. (2010). Fraud Auditing and Forensic Accounting. (4th ed.). Hoboken, NJ: Wiley. Wells, J. (2011). Principles of Fraud Examination. (3rd ed.). Hoboken, NJ: Wiley.