Management and Organizational Studies 1023A/B Lecture Notes - Lecture 5: Audit Risk, Sales Tax, Insurance Fraud

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

Document Summary

Discipline resolving allegations of fraud through tips, complaints or accounting clue. Done by obtaining documentary evidence, interviewing witnesses, and potential suspects, writing investigative reports, testifying to findings, assisting in the general detection and prevention of fraud. Timing: fraud is nonrecurring (only conducted with sufficient predication) as where auditing is recurring (conducted on a regular basis) Scope: fraud is specific, meaning all fraud examinations are conducted to resolve specific allegations, audits are general as they provide a general examination of financial data. Objective: fraud affixes blame onto who is responsible if fraud has occurred, audits objective is opinion, meaning it is conducted to express an opinion on the financial statements. Relationship: fraud is adversarial, meaning the examination is looking to affix blame, whereas in auditing it is nonadversarial because blame is not being looked for. Methodology: fraud examination techniques are conducted by 1. Document examination, 2. review of outside data such as public records, and 3.