562-Assignment AC Summary
Here is a summary of the five (5) written assignments for each week from your textbook, articles,
and web sites. Be sure to follow the Assignment Grading Rubric under Doc Sharing to earn the
maximum 10 or 30 points for each assignment (some assignments are 10 points and others are 30
points). As indicated in the rubric, your responses to these cases should be at least 400 words each
and you should include the requirements in BOLD. You must use MS Word to prepare your
assignment and you should submit to the Drop Box for the particular week. Feel free to complete
these assignments before the deadlines if you wish.
WEEK 1Visit the websites for the Institute of Internal Auditor and the Association of
Certified Fraud Examiners.
www.theiia.org
www.acfe.com
In particular, read the code of ethics for both organizations at:
http://www.theiia.org/guidance/additional-resources/ippf-processes/
http://www.acfe.com/about/cfe-rules.asp?copy=ethics
How do the codes complement each other? Provide three other notable points of information from
each site that either you learned for the first time or have found useful in your current work role.
Lastly, both organizations have standards. Why are standards important in these fields? As the code
of ethics, do the standards complement each other?
WEEK 2The Sarbanes-Oxley Act of 2002 (SOX) was a direct output of the financial
statement fraud that sank industry giants such as Enron and Worldcom.
I) What are the primary goals and tenets of SOX with respect to fraud?
II) How is SOX enforced?
III) What is PCAOB, its role, and based upon individual research, is it an effective oversight body?
IV) Based upon what the goals of SOX were, how it is implemented enforced, and through your
own experience and research (both if applicable) has SOX been a successful deterrent to financial
statement fraud?
WEEK 3Read and Prepare a 2-3 page case study report: FOR THIS MAGAZINE, INTERNAL AUDIT
PROVED HARD TO DIGEST pages 106-108 in Chapter 4: Billing Schemes of the Fraud
Examination text by Wells. Discuss the coincidences involved in this case study. Use the 2006
Fraud Survey (also located in Doc Sharing) for references concerning perpetrator, size of fraud,
detection, and controls.
AC 562-Assignment Summary
WEEK 5-Reporting and Relationships Case Study
http://www.ifc.org/ifcext/corporategovernance.nsf/AttachmentsByTitle/Internal_Audit_Relationshi
p/$FILE/Internal_Auditing_Reporting_Relationships.pdf
(see Doc Share)
Review the information contained with the governance report and answer the following questions in
a 2-3 page paper that addresses:
What is the correct relationship of internal audit to senior management?
How should conflict be managed? Is conflict inevitable?
What types of relationships would compromise independence? Was audit independence
compromised in the Worldcom study?
What should the Audit Committee of the Board of Directors do to ensure auditor independence?
WEEK 6-Fashioning A Fraud Case
study: http://www.journalofaccountancy.com/Issues/2007/Oct/FashioningAFraud.htm (see Doc
Share). The link above does not work.
Read the case study and map the fraud case to the appropriate expense report fraud flow in Chapter
7 (Exhibit 7.4 or 7.5 or 7.6). In a 2-3 page paper address the following questions: which fraud flow
and specific steps did the fraudster manipulate and how will the new processes installed deter,
detect or prevent this from recurring?