Management and Organizational Studies 1023A/B Lecture Notes - Lecture 6: Affix, Forensic Accounting, Financial Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Christina Maco

Document Summary

Resolving allegations of fraud whether from tips, complaints, or accounting clues is the discipline of fraud examination. Involves obtaining documentary evidence, interviewing witnesses and potential suspects, writing investigative reports, testifying to findings, and assisting in the general detection and prevention of fraud. Similar to forensic accounting: use of any accounting knowledge or skill for courtroom purposes, can therefore involve not only fraud, but also bankruptcy, business evaluations and disputes, divorce, etc. Fraud examination and accounting are related but not identical. Audits are conducted on a regular, recurring basis. Generally conducted to express an opinion on financial statements or related info. Audit process does not seek to affix blame. Audits are conducted primarily by examining financial data. Fraud examinations are nonrecurring; conducted only with sufficient predication. Determines whether fraud has occurred, and if so, who is responsible. Conducted by (1) document examination, (2) review of outside data such as public records, and (3) interviews.