ACC403 - Auditing 1 "Audit Risk and Fraud" Please respond to the following (two paragraphs only): ·...

Question

ACC403 - Auditing 1 "Audit Risk and Fraud" Please respond to the following (two paragraphs only): · Create a scenario in which a company conceals financial fraud from the auditing firm through the use...

1 answer below »

ACC403 - Auditing 1

"Audit Risk and Fraud" Please respond to the following (two paragraphs only):

· Create a scenario in which a company conceals financial fraud from the auditing firm through the use of information technology, and suggest at least one (1) way in which an auditing firm can minimize its exposure to this risk.

· According to the text, planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan in an attempt to reduce audit risk to an acceptable level. Select a balance sheet account or income statement account, and discuss the type of audit procedure that would produce the most reliable evidence for that account balance. Defend your position.

Answered Same Day Dec 26, 2021

David · Accepted Answer

"Audit Risk and Fraud" Please respond to the following (two paragraphs only):
1. Create a scenario in which a company conceals financial fraud from the 
auditing firm through the use of information technology, and suggest at least one 
(1) way in which an auditing firm can minimize its exposure to this risk. 
A company can conceal financial fraud from auditors through the use of Information 
technology in many ways like inflating sales, deflating purchases, introducing dummy 
workers, inflating expenses etc. 
A scenario where company conceals financial fraud is explained as follows:- 
Company can inflate its sales by making entry through fake invoices. Against fake 
invoices no sales is actually made by the company, stock is not reduced actually due to 
such sales meaning that in physical stock there is no change due to entry in books of 
accounts of such sales.

ACC403 - Auditing 1 "Audit Risk and Fraud" Please respond to the following (two paragraphs only): · Create a scenario in which a company conceals financial fraud from the auditing firm through the use...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment