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
Title: Facebook Reveals Security Breach Affects Up to 50 Million Accounts
Date: Sep 28, 2018
Title: Equifax: Personal Data for Millions of Americans Potentially Exposed
Date: Sep 7, 2016
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.