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The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support services.The financial forensic investigation techniques and procedures used within an organization (in-house) or from a professional contracted service firm can come about in different ways. For example, some forensic techniques for analyzing financial statements are common for financial auditors, fraud auditors, or forensic accountants and investigators. Other techniques, such asusing behavior detection methods and interviewing methods, are primarily used in specific fraud investigation engagements.  	Research and locate a company who was audited by an outside source and explain the method, technique, and findings of an audit. 	Do you think that it is a wise investment to contract services that provide security against fraud or should it be an in-house department that provides fraud security services? 	Include additional information that you think is appropriate or interesting concerning ethical or unethical business behavior. 	Cite your references in APA format.  
	
Document Preview: 1 PageThe purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support services.    The financial forensic investigation techniques and procedures used within an organization (in-house) or from a professional contracted service firm can come about in different ways. For example, some forensic techniques for analyzing financial statements are common for financial auditors, fraud auditors, or forensic accountants and investigators. Other techniques, such as using behavior detection methods and interviewing methods, are primarily used in specific fraud investigation engagements.Research and locate a company who was audited by an outside source and explain the method, technique, and findings of an audit.Do you think that it is a wise investment to contract services that provide security against fraud or should it be an in-house department that provides fraud security services?Include additional information that you think is appropriate or interesting concerning ethical or unethical business behavior.Cite your references in APA format.

David · Accepted Answer

We have researched two companies which were audited by the outside sources, the 
companies are Wesfarmers and Autodom Limited. The auditors have used various techniques 
before forming the opinion on the accuracy of the financial statement. The first techniques is to 
assess the inherent risk and then decide the further course of audit. In audit of financial statement 
of Wesfarmers and Autodom Limited we have come across following inherent risks. 
1) Autodom Limited is using straight line depreciation for depreciating all the fixed 
assets including building and capitalized lease assets, excluding freehold land. The rate of 
depreciation used is different for each class of depreciable assets such as for plant and equipment 
depreciation rate is 7.5% - 40%, for leased plant and equipment depreciation rate is 10% - 20% 
and for leasehold improvements depreciation rate is 10% - 15%. 
Different rate is used for different assets based on the judgment of the management, thus 
it is not possible to establish such an internal control which will help in determining whether the 
depreciation rate used is correct or not.  
Similarly,

The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in...

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