Carrie Allen
Auditing
Dr. William Huffman
Fraud is a multi-million dollar care. You dont believe it? Type the word put-on into your favorite hunting engine. Using Google get out return 236 million items. Granted, many of those will be some definition of the word but without considering those returns, charade is overwhelming. So how does one prevent fraud? You should start with ingrained control.
Whittington and Pany (2010) point out that prevention is a bakshis-down attitude. The top management of any firm should be firm in their resolve for strong internal control. However, many of the top scandals of the coulomb nurture involved top management. In the case of Enron, not besides were top executives found guilty, but the auditing firm, Arthur Andersen, came under interrogation for abetting the fraud (Patsuris, 2002). Leading by ex antiophthalmic factorle is a mustiness for any business to succeed but many have fallen short.
The new millenium brought with it many headlines about shady business practices. From the onset through 2002, at least 22 major corporate fraud cases made the headlines (Patsuris, 2002). America had become a veritable playground for the low-down and underhanded businessperson.
Investors that had been bilked out of their funds and employees that lost their jobs and retirement funds were crying foul and the SEC, the U.S. legal expert Department, and many congressional committees paid attention. The result was the Sarbanes-Oxley Act of 2002 (Whittington & Pany, 2010). This piece of legislation brought harsher penalties for corporate fraud and created the Public participation Accounting Oversight Board, or PCAOB (Whittington & Pany, 2010).
Many times, fraud is not marked until it is too late. The general public believes that auditors should discover fraud during a financial statement audit. Prior to 1900 this was true, however, auditing evolved to only give assurance that a companies financial statements are safe (Whittington & Pany, 2010). In...If you want to get a full essay, nine it on our website: Ordercustompaper.com
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