tailieunhanh - Lecture Auditing and assurance services (6/e) - Chapter 6: Employee fraud and the audit of cash

In this chapter, the learning objectives are: Discuss inherent risks related to the revenue and collection cycle with a focus on improper revenue recognition describe the revenue and collection cycle, including typical source documents and control procedures; give examples of tests of controls over customer credit approval, delivery, and accounts receivable accounting;. | Auditing & Assurance Services, 6e Chapter 06 Employee Fraud and the Audit of Cash "Rather fail with honor than succeed by fraud." --Sophocles (496-406 BC) 6- Learning Objectives Define and explain the differences among several kinds of employee fraud that might occur at an audit client. Identify and explain the three conditions (., the fraud triangle) that often exist when a fraud occurs. Describe techniques that can be used to prevent employee fraud. Describe the control activities over the receipt and disbursement of cash. Describe the types of substantive procedures that are conducted during the audit of cash. Discuss actual cash fraud cases and describe how the schemes were uncovered. Describe some extended procedures for detecting employee fraud schemes involving cash. 6- Employee Fraud Overview Fraud consists of knowingly making material misrepresentations of fact with the intent of inducing someone to believe the falsehood and act upon it and thus, suffer a loss or damage. Employee fraud is the use of fraudulent means to take money or other property from an employer. It consists of three phases: (1) the fraudulent act, (2) the conversion of the money or property to the fraudster's use and (3) the cover-up. Embezzlement is a type of fraud involving employees' or nonemployees' wrongfully taking money or property entrusted to their care, custody, and control, often accompanied by false accounting entries and other forms of lying and cover-up. Errors are unintentional misstatements or omissions of amounts or disclosures in financial statements. Direct-effect Illegal Acts are violations or government regulations by the company, or its management or employees that produce direct and material effects on dollar amounts in the financial statements. 6- The Fraud Triangle There are three conditions that are likely to be present when a fraud occurs. They are: Motivation Opportunity Rationalization 6- Motivation A motive is some kind of | Auditing & Assurance Services, 6e Chapter 06 Employee Fraud and the Audit of Cash "Rather fail with honor than succeed by fraud." --Sophocles (496-406 BC) 6- Learning Objectives Define and explain the differences among several kinds of employee fraud that might occur at an audit client. Identify and explain the three conditions (., the fraud triangle) that often exist when a fraud occurs. Describe techniques that can be used to prevent employee fraud. Describe the control activities over the receipt and disbursement of cash. Describe the types of substantive procedures that are conducted during the audit of cash. Discuss actual cash fraud cases and describe how the schemes were uncovered. Describe some extended procedures for detecting employee fraud schemes involving cash. 6- Employee Fraud Overview Fraud consists of knowingly making material misrepresentations of fact with the intent of inducing someone to believe the falsehood and act upon it and thus, suffer a .

• Kế toán - Kiểm toán
• Assurance services
• Financial statement audit
• Auditing and assurance services
• Auditing environment
• Collection cycle
• Inherent risks
• Assurance services profession
• Auditing services
• Audit process
• Assurance framework
• Accounting information
• Professional standards
• Auditing standards
• Financial statement auditing
• Auditing business processes
• Auditing internal control
• Internal auditing services
• Contemporary auditing environment
• Attestation engagements
• Account balances
• Structure of the profession
• Audit firms
• Corporate governance
• Professional ethics
• Legal liability
• Liability to clients
• Financial repport audit process
• Financial report assertions
• The business
• Strategic business risk
• Inherent risk assessment
• Inherent risk
• Internal control structure
• Assessing control risk
• Tests of controls
• Sales cycle
• Substantive tests
• Substantive tests of transactions
• Audit sampling
• Sampling theory
• Adjusting events
• Financial report
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties