Fraudulent financial reporting, Auditing

Assignment Help:

Fraudulent financial reporting

Involves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial statement users. Fraudulent financial reporting might entail the following:

(1) Deception like manipulation, falsification, or modification of accounting records or supporting documents from which the financial statements are set.

(2) Mis-representation in, or intentional error from, the financial statements of events, transactions or other important information.

(3) Intentional misapplication of accounting principles associating to measurement, presentation, recognition, categorization, or disclosure.

 
The differentiating factor among fraud and error is whether the underlying action which results in the mis-statement in the financial statements is planned or unintentional. Dissimilar error, fraud is intentional and generally includes deliberate concealment of the facts. Whereas the auditor might be able to recognize potential opportunities for fraud to be committed, it is hard, when not impossible, for the auditor to establish intent, mainly in matters including management judgment, like accounting estimates and the suitable application of accounting principles.


Related Discussions:- Fraudulent financial reporting

CODE OF eTHIC, Kelley Brent, CA, is a partner in a one-office CA firm that ...

Kelley Brent, CA, is a partner in a one-office CA firm that audits Dane, Inc., a closely held corporation. Kelley''''s sister was recently appointed as the chief financial officer

Inclusion in a report of investigation, Question : (a) Describe the fol...

Question : (a) Describe the following terms: 1) Forensic Accounting; 2) Forensic Investigation; 3) Forensic Auditing. (b) Explain the basic elements to consider for

Disclosures about inventories - ias 2, Disclosures about Inventories - IAS ...

Disclosures about Inventories - IAS 2 IAS 2 specifies disclosures about inventories. In a large manufacturing company, no article in the balance sheet appears verification

Long-term liabilities, Long-Term Liabilities Long-term liabilities are...

Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The

Determine the audit methodologies to conduct an audit, You are the external...

You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Evaluate the audit risk faced by each department, Problem: You are an a...

Problem: You are an auditor of a company which operates three large departmental stores at Grand Bay, Port Louis and Tamarin. You are preparing your audit plan and you are p

Share and deposits, Share and deposits Shares may consist of subscripti...

Share and deposits Shares may consist of subscription shares and paid up shares. Interest on shares might be credited to the accounts rather than being paid to ensure proper co

Financial statements rely, Financial Statements Rely All Financial prov...

Financial Statements Rely All Financial providers people must be sure that the financial statements can be relied upon. It should be noted that: 1. The auditor himself must be

Subsequent events - audit process, Subsequent Events - Audit Process I...

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd