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

Title: Equifax, Yahoo CEOs Face Questions on Capitol Hill

Date: Nov 8, 2017

Duration: 00:01:46

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

Date: Sep 28, 2018

Duration: 00:01:14

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.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s