ACCO 465 Lecture Notes - Lecture 6: Audit Risk, Accounts Receivable, Internal Control
Document Summary
The following memo is in reference to a phone call i have received from joanne alexander of. Joanne"s sewing machines and supplies, advising us that internal fraud has been detected. Within the accounts receivables department, anthony ricci, the accounts receivable manager, committed an alarmingly large fraud in regards to one of joanne"s sewing machines and. The following paper outlines my findings and a conclusion in order to assess what corrective actions must be taken to rectify the detected fraud. Cas 240 requires the auditor to consider fraud risk on every audit engagement, by making enquires of management regarding fraud, making no assumptions about management"s honesty, but maintaining professional skepticism. Cas 240 also requires auditors to use discretion in determining whether something is minor enough not to report. The fraud in question was related to stacy"s, a large national retail chain, and joanne"s largest customer.