7 corruption 128 fraudulent financial statements 51

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Unformatted text preview: 5.7%) Corruption (12.8%) Fraudulent financial statements (5.1%, but Fraudulent highest dollar amount) highest See Figure 10-4 Responsibilities to Detect Fraud Responsibilities Corporate – Positive security model a necessity » Corporate fraud policy » Ethical tone at the top » Policies on computer use and abuse » Network security policy Auditor’s Responsibility-SAS 99 Auditor’s Supersedes SAS 82 Effective December 15, 2002 Incorporates the fraud triangle and requires Incorporates audit team to consider the fraud triangle audit Professional skepticism Expanded team discussions, brainstorming Revenue recognition Technology Sarbanes-Oxley Act of 2002 Sarbanes-Oxley Public Oversight Board established Increased audit committee responsibilities Specifically prohibited activities – 8 nonaudit services now prohibited by company nonaudit also performing the audit also Criminal sanctions Whistleblower protection Forensic Auditing Forensic Investigating known or suspected fraud Computer forensics – The use of computer technology to i...
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This note was uploaded on 03/31/2014 for the course ACCOUNTING 1 taught by Professor Salendrez during the Spring '13 term at De La Salle University.

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