What actions to be taken on error/fraud discovery?

Q: Which of the following conditions is not necessary for a fraud to occur? Select one: a. Explanation…

A: Following conditions are necessary for a fraud to occur: 1. Pressure 2. Opportunity 3.…

Q: What are some red flags that may indicate a cover-up or concealment of a fraud?

A:

Q: Explain why professional skepticism would be critical in assessing and responding to the risk of…

A: Professional skepticism is a fundamental mindset that auditors and other professionals must adopt…

Q: Explain why deficiencies in internal controls might not always result in significant misstatements…

A: Internal controls are the systems, rules, and processes implemented by a company to ensure the…

Q: What characteristics should a fraud specialist possess? Please provide references with URL if any.

A: A fraud specialist is a professional who specializes in detecting, investigating, and preventing…

Q: What rules or policies should be developed to avoid ethical fraud issues?

A: Accounting Fraud:   Intentional manipulation of financial statement to create false financial heath…

Q: What is Materiality?

A: Audit is the examination conducted by the professional (auditor) on the financial statements and…

Q: Car Co. is negotiating to lease a piece of equipment to MT plc. MT plc requests that the lease be…

A: Present value of GRV = 5,000 * PV factor at 8% for 9th period = 5,000 * 0.500249 = 2,501 Fair value…

Q: How audit programs that need to be made to detect vulnerabilities in the firewall?

A: Auditing for security is very important and requires frequent and strict auditing that covers…

Q: Which of the following exists as an inherent risk even in the best designed systems     a.…

A: Internal controls are processes, policies, and procedures implemented by an organization to ensure…

Q: Apart from the internal audit and whistleblowing functions, what other mechanisms can assist…

A: There are various methods to tackle fraud. Listed below are explained as under- 1. Background…

Q: Explain what a ‘fraud risk factor means’ and discuss the three conditions generally present when…

A: Auditing is the inspection of the financial records of the company or organisations with no bias and…

Q: There are several steps involved in the fraud theory approach. What are they?

A: Fraud theory approach is an effective tool that can help in the deeper understanding of the…

Q: Why do fraud examiners handle information in a different manner than auditors? Why is thisimportant?

A: Fraud examiners handle information in a different manner than auditors, in order to minimize the tax…

Q: what types are frauds are possible in revenue cycle?

A: Introduction: The revenue cycle is a method of defining and maintaining the processes used for the…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.