6. Access a recently issued SEC Accounting and Auditing Enforcement Release related to a fraudaction (www.sec.gov). Click on enforcement and determine incentive(s)/pressure to commit the fraud,accounting issue(s), and the motive for the fraud."Access the Accociation of C

SEC Accounting and Auditing Enforcement Releases related to fraud actions. Here are a few notable…

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Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

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6. Access a recently issued SEC Accounting and Auditing Enforcement Release related to a fraud action (www.sec.gov). Click on enforcement and determine incentive(s)/pressure to commit the fraud, accounting issue(s), and the motive for the fraud.
1. Access the International Federation of Accountants Web site (www.ifac.org) and briefly describe the following two International Auditing Standards: ISA 500 and ISA 505. 2. Access the U.S department of justice website, and briefly explain the characteristics of identity theft. Give two examples of ways to commit identity theft. 3. Locate SEC Accounting and Auditing Enforecement Release No. 3029. What did that SEC release discuss?
(c) ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements, describesthe responsibilities of both management and the auditor with regard to preventing and detecting fraud.Required:i. Distinguish between fraud and error.ii. With an example each, distinguish between fraudulent financial reporting and misappropriation ofassets.
Match each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indicate your answer by writing the letter A through G for the term or phrase in the blank provided. A. Ethics B. Fraud triangle C. Prevention D. Internal controls E. Sarbanes-Oxley Act 1. Requires the SEC to pay whistleblowers. 2. Examines whether financial statements are prepared using GAAP; it does not ensure absolute accuracy of the statements. 3. Requires documentation and verification of internal controls and increases emphasis on internal control effectiveness. 4. Procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies. 5. A less expensive and more effective means to stop fraud. 6. Three factors push a person to commit fraud: opportunity, pressure, and rationalization. 7. Beliefs that distinguish right from wrong.
iii. Explain the responsibilities of both management and auditors with regard to the prevention and detection of fraud.iv. State audit procedures that auditor may follow to assess fraud.
What is EDGAR?a. A system the SEC uses to reject registration statements that do not contain adequate information.b. The enforcement arm of the SEC.c. A system designed by the SEC to allow electronic filings.d. A branch of the government that oversees the work of the SEC.
Explain the responsibilities of external auditors in detecting fraud in the financial statements.
8. The essence of the audit function is to: Select one:a. Examine individual transactions so that the auditor may certify as to their validityb. Detect fraudc. Determine whether the client’s financial statements are fairly stated.d. Assure the consistent application of correct accounting procedures.
Answer the following questions and give an example for each case: In which areas can the embezzlement scheme be identified? What can cause fraud to be committed in the presentation of financial statements?
True or false: 1. Auditors use substantive analytical procedures and tests of details of balances to satisfy plannedcontrol risk 2. The Securities and Exchange Commissions will set up the Office of the Whistleblower sometime inthe near future in an effort to combat fraud and offer monetary rewards for being a whistleblower 3. Transactions with related parties must be disclosed in the financial statements if they are deemed tobe material.
Which of the following procedures is MOST likely to be performed before the balance sheet date? a. Determine the date of the Letter of Representations b. Make a legal determination whether fraud has occurred. c. Search for unrecorded liabilities. d. Confirmation of receivables. e. Updating the predecessor's audit report date.
How is Benford's Law used to investigate cases of fraud? One example please and thank you in advance:(

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6. Access a recently issued SEC Accounting and Auditing Enforcement Release related to a fraud action (www.sec.gov). Click on enforcement and determine incentive(s)/pressure to commit the fraud, accounting issue(s), and the motive for the fraud. " Access the Accociation of C