Please answer these questions final Whrd File Home Insert Draw Desin Layout Refe
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Please answer these questions
final Whrd File Home Insert Draw Desin Layout References Mailings Review View Help Tell me what ynu want to do Share X Cut Times New R-16 A, A, Aa- Pasta fNormalTNu Spac .. Ileading .1 Heading 2 Tile SubLitle Subul Cr" Ermphasis Intense C Suung.lz Select cipbord Paregraph Styles Navigation 1. Explain why "Opportunity is the operative word when it comes to Search document Headings Pages Resalts Fraud Prevention and Deterrence Create an interactive outline of your document 2. Define and discuss Corporate Giovernance. (ive some examples of Corporate Ciovernance from a current or past organization with which you have been involved. Explain if these measures were It's a greal way to keep trak cf where yuu ate or quicktly move your content around. Heading styles to the headings in your dacumrnt. useful or not. 3. Explain why "Red-lags" and "Internal Controls" are useful tools in Fraud Prevention, Deterrence, Identification and Investigation . Discuss mhnagement's and auditor's responsibilities to prevent and deter Fraud 5. What are the following and how are they related: Fraud Risk Management, Fraud Risk Assessments, and Fraud Prevention Programs? O Type here to search 15 AM 1214/2017Explanation / Answer
Dealing with fraud before it occurs is essential for the survival of business. Every Organization should take the opportunity to consider, enact and improve measures to detect, deter and prevent fraud before it occurs. A combined effort must be made by the board of directors, the audit committee, internal and external auditors, risk management personnel, investigators, operations personnel and others to manage the risk of fraud.
Corporate Governance refers to the way a corporation is governed. It is the processes by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be strong and there should be no conflict between them. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked. One example of good Corporate Governance is Communication. Good corporate governance requires timely and accurate communication of a number of aspects of corporate business operations. Information must be communicated in a timely and accurate fashion and it may include corporate financial performance, such as sales, profit, and loss data, and relevant economic data. The activities in which the company engages in the course of business operations must also be reported in an open and timely manner. The definition of timely can vary, depending on the jurisdiction. In general, Information is communicated in annual corporate reports.
Common Red Flags are
Structural red flags of fraud relate to the way that a company is set up and the policies and procedures that are in place. Those very systems create opportunities for fraud each day. Employees become familiar with operations, and they begin to understand what accounts are unmonitored, which areas of the company are poorly supervised, and what size of transaction that creates added scrutiny.
Personnel red flags of fraud refer to the employment policies and procedures within a company, including hiring procedures, advancement policies, employee monitoring programs, and disciplinary standards.
Operational red flags of fraud highlight how a company does business each day. Do things run smoothly, minimizing the chance for errors and problems? Or are things managed in such a fashion that errors go unchecked and employees do whatever they want, whenever they want?
Accounting system red flags of fraud refer to the organization of the system and the level of internal controls that are in place. A good, secure accounting system cannot exist without internal controls, and the company cannot be free from error and fraud without such controls.
Financial performance red flags of fraud include aggressive goals and performance measures, both at the individual and company-wide levels. When a certain level of performance is mandated, by the boss, Wall Street, the bank, or otherwise, there can be a temptation to turn to fraud to meet these goals.
Professional service red flags are present when a company has apparent trouble keeping an auditing firm or retaining attorneys, switches banks frequently, or otherwise has persistent difficult relationships with professional service providers.
Internal controls are the plans, procedures and programs implemented to safeguard the company's assets, ensure the integrity of its accounting records, and deter and detect fraud and theft. Segregation of duties is an important component of internal control that can reduce the risk of fraud from occurring.
4. Management is responsible to devise measures to prevent and deter Frauds by applying various means like Internal Controls, Internal Audits, Supervision etc. Management is also responsible for reporting of frauds and findings in its Financial Statements. The auditor has no responsibility towards "detecting" fraud. The purpose of the audit is to determine whether the AUDITED FINANCIAL STATEMENT present fairly in all material aspects of the financial position and performance of the business. Keeping this in mind, the responsibility which falls onto the auditor is to reduce the risk of fraud in the AUDITED FINANCIAL STATEMENT to an acceptably low level, meaning the auditor needs to consider the risk of material misstatement in the AUDITED FINANCIAL STATEMENT due to fraud when planning and performing the audit. Where there is a high risk of fraud, the audit procedures carried out should be extensive in order to reduce the risk. As long as the auditor complies to the International Standards on Auditing and performs his/her work with due diligence and independence, the auditors responsibilities are satisfied.