Identify and briefly describe the specific fraud risk factors present during the 2000 NextCard audit. How should these factors have affected the planning and execution of the engagement? First of all, the nature of NextCard operations was very risky. The fact that they authorized credit to customers without properly analyzing their credit report history was the reason of the losses. NextCard was primarily concern of having a large amount of customers regardless of the risk. Because NextCard was
Words: 501 - Pages: 3
should be willing to accept in order to maintain trust and integrity. Design/methodology/approach – A wide range of articles and journals published in international journals as well as local journals has been reviewed. The areas covered include audit fraud, true and fair view interpretation, auditor independence and role of internal auditors. Further, ideas have also been obtained from critical write-ups in the business magazines on the fall of multinationals. Findings – A wide range of interpretation
Words: 12579 - Pages: 51
profitability goals, the accomplishment of their mission statement, and helps minimize any unexpected events that may occur. This analysis will: (1) describe the importance of internal control programs, (2) identify effective internal control techniques, (3) illustrate the relationship between ethics and internal control techniques, and (4) describe the importance of the Sarbanes-Oxley Act. The Importance of Internal Control Programs Effective internal controls are the foundation to a safe, sound
Words: 273 - Pages: 2
Auditors’ Responsibility Today to Detect Fraud; include how do these responsibilities fit into the professional practices of: external auditors, Certified Public Accountants in public practice and Internal Auditors and what has changed in these areas in recent years? For standards or articles use the following items as they relate to your paper to help organize your paper. Statements on Auditing Standards (SAS), especially all those statements relating to fraud, Financial Accounting Standards Board
Words: 2508 - Pages: 11
94 * Sarbanes-Oxley Act of 2002 Understand the reasons humans make mistakes * Errors may be the result of many factors * Distractions – Concurrent tasks, work environment, personal situations, * Complexity – It’s easier to complete a simple task than a hard one. * Limitations – Fatigue, cognitive limitations, etc. Be able to describe the COSO model and it components. * The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a joint
Words: 2067 - Pages: 9
Litigation Exposure in Identifying & Investigating Fraud Risk In the backlash of fraud and failed auditing, a more stringent standard for auditors was enacted in hopes to avoid the failures of the early 2000s. The Sarbanes-Oxley Act and statements of auditing standards such as SAS 99 were put into place to accomplish this goal. Yet, with more stringent standards comes a heightened public expectation that may increase the potential litigation auditors face. In the world of auditing, a very
Words: 2824 - Pages: 12
b- According to the accounting information systems overview, there are two levels of frauds: employee fraud and management fraud (p.98). After examining all the facts presented in this case and all four characters with their respective implications during these events, I believe that the embezzlement took place at an employee level and the perpetrator is Debbie Jones the office worker. Employee fraud or fraud by nonmanagement employee is generally design to convert cash or other assets to the employee’s
Words: 1184 - Pages: 5
the auditor, describe the concerns you have that may suggest fraud is occurring in the company. The Fraud Triangle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley The fraud triangle originated from Donald Cressey's hypothesis (Donald R. Cressey, 1973). The fraud triangle is a model for explaining the factors that cause someone to commit occupational fraud (acfe, n.d.). Type of fraud: Management fraud
Words: 4095 - Pages: 17
Auditing Cases An Interactive Learning Approach FIFTH M F S D E D ITIO N S. B A. B M. G F. P Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager:
Words: 139985 - Pages: 560
a self-review threat may arise if I was to review judgements and decisions I, or others within the firm, have made. Familiarity (or trust) threats are threats that emerge from auditors being impacted by a close association with an auditee. Such a risk is available when auditors are not adequately suspicious of an auditee's declarations and, therefore, too promptly acknowledge an auditee's perspective as a result of their commonality with or confide in the auditee. For instance, this threat may emerge
Words: 2616 - Pages: 11
