Definition of fraud and its distinction to employee and management.
This is an assignment that discusses the definition of fraud and its distinction to employee and management. The paper also demonstrates the understanding of the fraud triangle.
Definition of fraud and its distinction to employee and management
Assignment
“When a company has a strong internal control structure, stockholders can expect the elimination of fraud. Further management and auditors are required by Sarbanes-Oxley Act of 2002 to consider IT application controls as well as physical human controls.” (Hall, 2019, p 133). Assignment question: (a) Explain fraud and distinguish between employee fraud and management fraud. (b) Using the fraud triangle theoretical framework show how fraud is committed in multinational companies. Provide recent corporate scandal involving fraud/accounting misconduct as an example to support your answer. (c) Critically discuss the statement that, when a company has a strong internal control structure, shareholders can expect elimination of fraud. (d) In this age of high technology and also computer-based information systems, why are accountants concerned about physical (human) controls? (25 marks for each question. 25marks X 4 = 100marks)
Evaluation
Your evaluation could include the following:
1) Firstly, a clear demonstration of understanding of fraud and the difference between management fraud and employee.
2) Secondly, a clear demonstration of understanding of the fraud triangle with recent examples from multinational company involving fraud/accounting misconducts
3) Thirdly, a clear demonstration of understanding of the COSO internal control framework.
4) Then, show understanding of IT application controls such as flowchart process and input validation.
5) Identify internal control measures which could be put in place to prevent fraud in a given situation.
6) Clear practical examples and applications from companies or firms that have been victims of fraud like in this instance to score well is a good recommendation.
7) Finally, demonstrate excellent work will suggest some remedies.
Lastly, here possible, in all aspects of your answers, you should illustrate your discussion with appropriate and relevant examples from issues in particular company or companies. You are also to cite all the resources used in the pursuit of the assignment.
Definition of fraud and its distinction to employee and management
