Assignment Review the PCAOB Disciplinary report for Moore & Associates. In your opinion, were...

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Assignment   	Review the PCAOB Disciplinary report for Moore & Associates. In your opinion, were Ethos, Standard Drilling, and Biocoral committing fraud by hiring Moore & Associates? Why or why not? 	Read pages 1-32 of the 2012 Report to the Nations (see link below.) then answer questions 3 and 4. 	Define and describe each of three types of fraud. Include facts about the frequency, losses, duration, most common perpetrators, and most likely way the fraud is discovered. 	Research and describe one example of each type of fraud that occurred within the past 3 years. Identify your source and the company name. For your asset misappropriation example, identify the sub-category to which your example relates (if possible.) 	Read pages 32-38 of the 2012 Report to the Nations. Then answer questions 6, 7 and 8. 	Give your reasoned opinion as to why external audits of financial statements and external audits of ICOFR (internal control over financial reporting) are not more effective at detecting fraud.     	Identify and describe the three “sides” of the fraud triangle. Give one example of each “side.”     	The concept of a fraud diamond was introduced in 2004. How does the fraud diamond differ from the fraud triangle? 
	
Document Preview: Accounting Information SystemsFraud part 1Homework Assignment 3DeliverableTyped paper, no required length or number of words.  I encourage you to type your answers on this document, so you have the questions and answers together.  If you do that, you must still provide a bibliography with only the resources you actually used. Do NOT directly quote from any specific resource (but DO properly reference resources utilized.)  I want your own words.  Follow APA citation guidelines for all resources utilized. HYPERLINK "http://www.apastyle.org/learn/tutorials/basics-tutorial.aspx" APA Citation Guidelines: http://www.apastyle.org/learn/tutorials/basics-tutorial.aspx(View the tutorial, beginning on screen 13) HYPERLINK "http://owl.english.purdue.edu/owl/resource/560/02/" http://owl.english.purdue.edu/owl/resource/560/02/AssignmentReview the PCAOB Disciplinary report for Moore & Associates.  In your opinion, were Ethos, Standard Drilling, and Biocoral committing fraud by hiring Moore & Associates?  Why or why not?Read pages 1-32 of the 2012 Report to the Nations (see link below.) then answer questions 3 and 4. Define and describe each of three types of fraud.  Include facts about the frequency, losses, duration, most common perpetrators, and most likely way the fraud is discovered.Research and describe one example of each type of fraud that occurred within the past 3 years.  Identify your source and the company name.  For your asset misappropriation example, identify the sub-category to which your example relates (if possible.) Read pages 32-38 of the 2012 Report to the Nations. Then answer questions 6, 7 and 8. Give your reasoned opinion as to why external audits of financial statements and external audits of ICOFR (internal control over financial reporting) are not more effective at detecting fraud.Identify and describe the three “sides” of the fraud triangle.  Give one example of each “side.”The concept of a fraud diamond was introduced in...

David · Accepted Answer

The audit practices at M&A, which violated PCAOB quality control standards, were an 
unacceptable act on the part of the company. Moore caused those violations and failed to 
perform critical aspects of the audit.  In each of those cases, Ethos, Standard Drilling, and 
Biocoral issued the audit reports, representing which claimed that audits were conducted per 
the standards issued by PCAOB. They were not vigilant enough to know, or submitted the 
report knowingly.  These companies were also not cooperative with the Board’s investigation 
into the matter. They tried to circumvent the investigation in the following three ways. These 
companies created misleading work papers that were not reflective of the work actually 
performed on these relevant audits. Instead, they presented the misleading work papers when 
asked by the Board's Division of Enforcement and Investigations. In addition to this, Moore 
falsely testified the misleading and false work papers produced by Ethos, Standard Drilling, 
and Biocoral as the true and accurate audit work papers which he claimed to have completed 
during the process of conducting audit, even when he knew that they were not. Besides, 
M&A did not produce documents which were required by an Accounting Board Demand. 
Therefore we can say that hiring Moore & Associates does not equate to committing a fraud. 
But, these practices mentioned above were fraudulent and lead to the ultimate lawsuit that the 
perpetrators had to face.
The three categories of occupational fraud schemes are: 
• Asset misappropriation schemes are those where the employee steals or misuses the 
company’s resources such as cash theft, misleading billing schemes or reporting higher then 
incurred expenses for personal profit.  
• Corruption schemes involve misusing the influence an employee might possess in a 
business transaction in such a way that they can get personal benefit at the cost of violating 
their duty towards the employer. Bribery is an example of corruption.  
• Financial statement fraud schemes cause a company to misstate or omit important 
information from the company’s financial reports. Example includes understating expenses to 
inflate profit numbers.  
As reported by the previous years’ assessments,

Assignment Review the PCAOB Disciplinary report for Moore & Associates. In your opinion, were Ethos, Standard Drilling, and Biocoral committing fraud by hiring Moore & Associates? Why or why not? Read...

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