ADMS 4515 Lecture Notes - Lecture 6: Internal Audit, Financial Statement

• School: York University
• Department: Administrative Studies
• Course: ADMS 4515
• Professor: Anastasios Chatzidimos

Document Summary

~ 4 questions with 1 big case; others are about a page (code of ethics) Fraud: intentional act or an act of omission where the victim suffers a loss. 3 types of fraud: asset misappropriation, fraudulent financial statements, corruption. Commit fraud due to motivation, opportunity, and rationalization. Fraud occurs when : absence of controls, management role models are corrupt, inefficient or weak. Employees are poorly managed, stressed or mentally abused. Indicators: lack of segregation of duties, unexplained account variances, late reporting, staff not taking vacations. Strong governance provides the foundation for an effective fraud risk management program. Internal auditors job = contribute to the overall governance of a fraud risk management. Fraud prevention background investigations, evaluate performance and incentive programs, authority limits. Fraud detection whistleblower, process controls, proactive fraud detection procedures. Forensic accounting = accounting, auditing and investigative skills (trace funds + financial analysis) Accounting analysis that may used in a court of law.