Fraud Risk

1. Create a scenario where the external auditors detect that there is fraud. Discuss the auditors’ responsibilities for assessing fraud risk. What are the procedures used to detect material misstatements due to fraud?

2. Discuss recommendations to management for reducing fraud.

NBC Learn Videos: Cyberattacks on Public Companies

https://archivesbb.nbclearn.com/portal/site/root/widget/VDi8YCK7QOLIWcO2kjpwlhX6tGeA82C4K9TY_6k9Qyt_r7HZzqtp2EO6HXzxfw76vfNBItpbW-pD48z7pewc-LJn2OVG6izn/efa15faf1f1af510VgnVCM100000c1dad5adRCRD

Title: Equifax, Yahoo CEOs Face Questions on Capitol Hill

Date: Nov 8, 2017

Duration: 00:01:46

https://archivesbb.nbclearn.com/portal/site/root/widget/VDi8YCK7QOLIWcO2kjpwlhX6tGeA82C4K9TY_6k9Qyt_r7HZzqtp2EO6HXzxfw76vfNBItpbW-pD48z7pewc-LJn2OVG6izn/edb25a51b1036610VgnVCM100000c1dad5adRCRD

Title: Facebook Reveals Security Breach Affects Up to 50 Million Accounts

Date: Sep 28, 2018

Duration: 00:01:14

https://archivesbb.nbclearn.com/portal/site/root/widget/VDi8YCK7QOLIWcO2kjpwlhX6tGeA82C4K9TY_6k9Qyt_r7HZzqtp2EO6HXzxfw76vfNBItpbW-pD48z7pewc-LJn2OVG6izn/dbfab6206ad5e510VgnVCM200000c2dad5adRCRD

Title: Equifax: Personal Data for Millions of Americans Potentially Exposed

Date: Sep 7, 2016

Duration: 00:01:46

3. Watch the three NBC Learn videos on recent data breaches at three major corporations. Analyze the effects of the SEC‘s data breach disclosure requirement on financial reporting, based on the current language of the requirement. Recommend a change to the disclosure requirements to strengthen public company disclosures of cyberattacks. Provide support for your rationale.

4. Examine the impact of cyberattacks on potential investors in a public company. As an auditor, provide your recommendations for including the potential of a cyberattack in the 10-K, as opposed to an actual attack. Provide support for your recommendation.

Consolidated Financial Statements – Ownership, Income Taxes, and Legal Reorganizations”

5. Examine the fundamental advantages to a business combination of filing a consolidated tax return. Next, analyze the main reasons why members of a business combination file separate returns. Provide a rationale for your response.

6. Differentiate between the two (2) categories of liabilities (i.e., fully secured and partially secured) that have priority in business liquidation. Analyze the main reasons why unsecured creditors favor reorganizing an insolvent company rather than forcing it into liquidation. Provide support for your rationale.

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