Question

Jock and a friend were discussing fraud. His friend said the following: a. The internal auditors...


Jock and a friend were discussing fraud. His friend said the following:
a. The internal auditors are not responsible for finding, stopping or reporting fraud. This is the job of the external auditor.
i. Do you agree with what Jocks’ friend said? Give reasons for your answer.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Internal audit is a review of the operations and records, sometimes continuously undertake, within a business, by specially assigned staff. Internal audit is a thorough examination of the accounting transactions as well as that of the system according to which thee have been recorded, with a view

to reassuring the management that the accounts are being properly maintained and system contains adequate safeguards to heck any leakage of revenue and misappropriation of property or assets and the operations have been carried out in conformity with the plans of the management.

Hence I do not agree with Jocks friend comments.It is clear that internal auditors scope covers finding and reporting fraud as well.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
do you think that management should be responsible for internal controls to prevent fraud or should...
do you think that management should be responsible for internal controls to prevent fraud or should that be the responsibility of the auditor? Provide examples to back up your ideas. DO NOT SUBMIT ANYTHING HANDWRITTEN! i promise, your handwriting isn't as good as you think it is
1. Which of the following best describes the reason why independent auditors report on financial statements?...
1. Which of the following best describes the reason why independent auditors report on financial statements? A management fraud may exist and it is more likely to be detected by independent auditors. An audit provides credibility to the financial statements. A misstatement of account balances may exist and it is generally corrected as the result of the independent auditors' work. Poorly designed internal controls may be present. 2. Audits of financial statements are designed to obtain reasonable assurance of detecting...
​​​​​​​Your friend said that the change in heart rate during exercise is primarily due to a...
​​​​​​​Your friend said that the change in heart rate during exercise is primarily due to a reduction in the PR segment. Do you agree? Justify your answer by addressing what the PR segment is associated with in an ECG and how that relates to blood flow.
Read the following Internal Audit Section of LDC Cloud Sytems Case study and answer the question:...
Read the following Internal Audit Section of LDC Cloud Sytems Case study and answer the question: INTERNAL AUDIT CFO Arizmendi had hired Scott Tensar during the run-up to the IPO for the purpose of creating and heading the internal audit function, and Tensar had continued to report directly to Arizmendi since that time, with a secondary reporting relationship to the board’s audit committee. Tensar, who was well-qualified for the position, was responsible for providing assurance that LDC’s major risks were...
Please answer the following questions: 1. Specifically explain the two accounting methods that WorldCom used to...
Please answer the following questions: 1. Specifically explain the two accounting methods that WorldCom used to commit fraud? 2. What were the pressures that led executives to commit fraud at WorldCom? 3. Were the external auditors and board of directors blameworthy in this case? Why or why not? 4 .Specifically, how was the fraud discovered? Do you agree or disagree with the actions taken to discover it? 5. Was Betty Vinson a victim or villain? Should criminal fraud chargers have...
IReading the following Internal audit section of the LDC Cloud Systems Case Study: NTERNAL AUDIT CFO...
IReading the following Internal audit section of the LDC Cloud Systems Case Study: NTERNAL AUDIT CFO Arizmendi had hired Scott Tensar during the run-up to the IPO for the purpose of creating and heading the internal audit function, and Tensar had continued to report directly to Arizmendi since that time, with a secondary reporting relationship to the board’s audit committee. Tensar, who was well-qualified for the position, was responsible for providing assurance that LDC’s major risks were being appropriately addressed...
Please answer these questions as if you were Edwin Hubble discussing his Galactic Observations. Tell us...
Please answer these questions as if you were Edwin Hubble discussing his Galactic Observations. Tell us your name and tell us about your project. What were you guys trying to do or find? Where did the project or experiment occur? What other significant events were happening around the world at that time? Who else was involved in the project? What was your role in the project? What impact did your project have on the physics community? (Make up one questions...
[The following information applies to the questions displayed below.] Assume Ethan Lester and Vick Jensen are...
[The following information applies to the questions displayed below.] Assume Ethan Lester and Vick Jensen are CPAs. Ethan was seen as a “model employee” who deserved a promotion to director of accounting, according to Kelly Fostermann, the CEO of Fostermann Corporation, a Maryland-based, largely privately held company that is a prominent global designer and marketer of stereophonic systems. The company has an eleven person board of directors. Kelly considered Ethan to be an honest employee based on performance reviews and...
A team of internal auditors developed the following finding, except for their recommendation: Condition                         &
A team of internal auditors developed the following finding, except for their recommendation: Condition                            Current production rate per machine is 120 units per day, leading to more than two-week delays in job deliveries. Criteria                                 The standard production rate is an average of 150 units per day per machine. Cause                                    The variable quality of the current supply of raw materials results in inconsistent product quality, numerous rejects, and machine breakdowns. Effect                                    In addition to production delays, 10 percent of all orders...
The WorldCom fraud was the largest in U.S. history, surpassing even that of Enron. Beginning modestly...
The WorldCom fraud was the largest in U.S. history, surpassing even that of Enron. Beginning modestly during mid-year 1999 and continuing at an accelerated pace through May 2002, the company—under the direction of Bernie Ebbers, the CEO; Scott Sullivan, the CFO; David Myers, the controller; and Buford Yates, the director of accounting—“cooked the books” to the tune of about $11 billion of misstated earnings. Investors collectively lost $30 billion as a result of the fraud. The fraud was accomplished primarily...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT