Importance of Sarbanes Oxley
Redefines the relationship that the company has with the auditor
It keeps the relationship in check by:
Having the audit firm engage with the audit committee
AC approves auditors scope and fees
The CFO no longer had the sam
Internal Audit Involvement
(Internal and External
assurance. There is
already a process in place.
Monitor current process and analyze
Group Fraud Case Part 2
1. Describe the fraud in the payroll area?
Three false employees have been created in the payroll area. These fake employees
have P.O. boxes listed as their addresses and are receiving money for hours they have
Madoff Fraud Case Questions
1. Compare the Madoff fraud to the fraud cases of Enron, MCI WorldCom, and Petters.
There are a few common threads among the three cases. Name three common themes
among the frauds. (Hint: the fraud triangle is not the
Chapter 8 Homework
MC1: Predication is a technical term that refers to:
b) The ability of a fraud examiner to commence an investigation if a form of
evidence exists that fraud has occurred.
MC2: What fraud schemes were found to be most common
Chapter 5 and 6 Questions and Answers
Q1: What is a business process?
The set of connected activities linked with each other for the purpose of achieving one or
more business objectives
Q5: What is the difference between a top-down and bottom
Chapter 4 Homework Questions and Answers
Q1: What is the definition of risk used by COSO?
the possibility that an event will occur and adversely affect the achievement of an
Q2: What are the four fundamental points embedded in COSOs
Chapter 3 Homework Questions and Answers
Q3: What is the difference between the two areas of governance depicted in Exhibit 3-3?
The board of directors must provide direction and guidance relative to the
establishment of ke
Chapter 2 Homework Questions and Answers
Q2: What are the six components of the IPPF? Which components constitute mandatory
guidance? Which components constitute strongly recommended guidance?
Chapter 1 Homework Questions and Answers
Q1: How does the IIA define internal auditing?
Q2: What is the primary difference between an organizations objectives and its
Internal auditing is an independent, objective assurance and consulting ac
Ch. 1 Review questions 1-8, 12
1. What are the three components of the internal audit value proposition set forth by The IIA?
A: Assurance = Governance, risk, and control.
Insight = Catalyst, Analyses, and Assessments.
Objectivity = Integrity, Accountabil