RSM423H1 Lecture Notes - Lecture 11: World View, Financial Statement, Internal Audit
Document Summary
Ponzi schemes red flags: promises of abnormal about market return, secretive, they tell you as little as possible, privileged access (affinity fraud, turn away people, you need to be invited to attend, fraud among professionals, appearance of success. In criminal law: proof beyond a reasonable doubt: a person is innocent until prove guilty. If set acceptable accr < 0. 5, the estimate has (1 - accr) probability of being true. Auditability concept (for a point estimate: point estimate is a single number => f/s is full of point estimate) Internal control: fraud risk, ethical direction, monitor internal auditors. Internal auditors (ias) (slide 38-40: cornerstone of corporate governance, enhance the qualify of financial reporting. Increase efficiency + effectiveness of external auditors (eas: make sure estimation process is reliable, a professional (called cia, they can replace eas? (slide 23) I(cid:374)depe(cid:374)de(cid:374)t if do(cid:374)"t (cid:396)epo(cid:396)t to (cid:373)a(cid:374)age(cid:373)e(cid:374)t a(cid:374)d (cid:396)epo(cid:396)t di(cid:396)e(cid:272)tly to bod.
