Fraud AC465 - Fraud AC465-01 Managers play a crucial role in detecting fraud in financial reporting especially in the case of publicly traded

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Fraud AC465-01 Managers play a crucial role in detecting fraud in financial reporting especially in the case of publicly traded companies. While managers have an obligation to understand the accounting controls and how they are implemented and being used in a small business there is not a law that requires managers to sign off on accounting records as in most cases there are not enough resources to manage such an endeavor. However, in a larger company there is a requirement based on the Sarbanes Oxley Act of 2002 that requires senior level management to sign off on the accounting records of the company holding them liable for fraudulent misrepresentation of accounting statements. There are many fraudulent schemes associated with financial reporting including: 1. Recording gross rather than net revenue. This allows the company to appear to be selling more than they actually are which overstates their revenue and gives investors the false
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This note was uploaded on 01/18/2012 for the course HOMEWORK AC420 taught by Professor Atkins during the Spring '11 term at Kaplan University.

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