Question 1: Auditors should not insist that their clients accept all proposed audit adjustments even though those that have an immaterial effect on the financial report. The auditors should be suspicious of any rejection of the clients and have to investigate deeper into the suspicious accounts. Moreover, auditors should not be careless even though they have close relationships with the clients and fear that they would lose potential auditing fees. Question 2: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles.
While I would not say Dr. Hill’s argument is absolutely false-there are exceptions to every rule, I would say he is misguided with how much power a fence possesses. For the most part, Fences are creatures of opportunity; Fences didn’t create the thief, the thief created the fence by stealing in the first place. While some fences do finance, plan, and train thieves-these fences are a rare breed. The vast majority of fences merely act as businessmen and buy merchandise as it comes in “No questions asked”. Before I share my views on how to reduce crime, let me explain why I disagree with some of Dr. Hill’s arguments.
Furthermore the case stated that there was actually no audit work that was done, and Madoff’s cousin was the sole practitioner conducting the audit. These factors raises serious questions of obvious bias and unethical practices involved in performing the audit. Another solution is to provide a safe environment or an outlet for individuals to disclose their potential concerns of fraud. For instance, an outlet such as fraud hot line may have encouraged those who turned the other cheek to come forth. Between the two alternative solutions, I believe that the first solution of tightening the review process of the SEC would be most effective in combating the problem statement.
* Investors, Tyco employees, funds could’ve been used more effectively in other areas. Whose rights will be exercised? * Dennis Kozlowski, Mark Schwartz, Whose rights will be ignored? * Investors, Tyco employees and the board. He didn’t think he needed to ask Express the moral problem so that everyone will believe that his or her moral concerns have been recognized and included.
If a reasonable person believes a manager should have known about fraud in the business, this may be a good reason to allow the jury to side with the claimant. Although some of the practices may meet GAAPs, that doesn’t mean all are ethical. One of the biggest problems is the legality of it. What may be deemed legal by the SEC one year may not be considered legal the next year. So if you’re involved n questionable accounting technique like “book-and-hold” or something similar, and then it becomes
3. Goodner’s Huntington office clearly could have benefited from some simple internal control procedures. These procedures would have been able to stop, or at least make it very difficult for Woody to misappropriate the assets of the company. The most effective controls relate to the deficiencies listed above: A) Allow access to the accounting records only to the bookkeeper. Sales reps can view records but not modify them.
Vandivier realized irregularities on data, the calibrations were manipulated, he has two choices , to manipulate the data or defy his boss. Q3 : How did Sink and Warren looked at the matter? How would you evaluate their conduct? They weren’t faithfull at all, they just wanted to done with project without
The crime of identity theft is committed by fraudulent means to obtain financial resources from the person. The information below will include the types of identity theft, how it occurs, how large the growing problem is, and how to protect yourself from it. What is Identity Theft? Business & Money defines identity theft as: “Identity theft occurs when the personal identifying information of an individual is misappropriated and used in order to gain some advantage, usually financial, by deception (White, 2012).” Many people confuse regular fraud as being the same as identity theft, and that is not the case. In a fraud case, the criminal is not taking the identity of a certain person.
Criminals do not commit crimes based on there unemployment but rather to the fact that they are not content with their financial situation. It gives a person a reality check when they go into the store and are not able to purchase something. Criminals tend to not care about the repercussions of their actions. The lack of care of criminal punishment is more of a psychological issue. Another factor that contributes to criminal behavior is anger, Rather than the actual fact that a person is unemployed.
3. Why did Nick Leeson establish a bogus error account (88888) when a legitimate account (99002) already existed? First, Leeson set up this account to hide embarrassing losses that could result from mistakes made by his traders. However, as soon as he set up that account, it facilitated his furtive trading activities; making it “legit” for it too trade in the SIMEX. 4.