How control weaknesses can lead to fraud

Reference no: EM13817968

How Control Weaknesses Can Lead to Fraud

In your Discussion, you will be faced with a potentially fraudulent situation. This is something that you might face in your auditing career as well. How would you handle these types of difficult situations?

You are auditing the internal controls of the Kemmons Corporation and you have found several material weaknesses in their system. You discuss the internal control weaknesses with the president. He states that he will make the necessary changes personally and tells you that there is no need to tell the board about the weaknesses. He does not want to bother the busy board members with these details, and he states the board is only involved with major items such as policy changes.

As a new auditor, how would you respond to the president?
If you were the audit partner on this engagement, would your response change? Why or why not?

Reference no: EM13817968

Questions Cloud

The mandatory analysis comparing the percent of minorities : The mandatory analysis comparing the percent of minorities and women in the community in each job category with the percent employed by a government contractor is known as:

Internal control and transfer pricing : What is responsibility accounting? Is it used at your current (or former) place of employment, and if not, would it work? Why or why not?

Product costing systems and cost allocation : Find a journal article online about absorption and/or variable costing. In the subject line of your post, include the title of the article that you read.

Write a paper based on emerging network security solutions : Write a paper based on emerging (future/important) network security solutions.

How control weaknesses can lead to fraud : In your Discussion, you will be faced with a potentially fraudulent situation. This is something that you might face in your auditing career as well. How would you handle these types of difficult situations?

Indirect and direct methods : Discuss the differences between the indirect and direct methods of preparing the statement of cash flows. What do you believe are the most significant advantages and disadvantages of using each method? Explain your reasoning.

Provide objective info on implement 3-d printing technology : You need to provide objective info on implementing 3D printing technology. Research needs to include providers and their offerings, logistics, capabilities, security issues, risks and mitigations.

Amount of the annual depreciation : What is the amount of the annual depreciation computed by the straight-line method?

Managed care reform and patient rights act : Managed Care Reform and Patient Rights Act

User Account

All Pages