Auditing Ritter 审计学基于的环境变化的概念ch08.pptVIP

Chapter 8 Auditing for Fraud Fraud Auditor Responsibilities: Historical Evolution The detection of material fraud is a reasonable expectation of users of audited financial statements. Society needs and expects assurance that financial information has not been material misstated because of fraud. Unless an independent audit can provide this assurance, it has little if any value to society This statement by the Public Companies Accounting Oversight Board represents a dramatic change in auditors responsibility for detecting fraudulent financial reporting Previously, AICPA auditing standards required auditors to plan and perform an audit to provide reasonable assurance of detecting material misstatements, including those caused by fraud Today, the message is clear: auditors must assume greater responsibility for detecting fraud Comment on the Magnitude of Fraud According to a 2002 study by the Association of Certified Fraud Examiners (ACFE)-- Six percent of revenues will be lost as a result of fraud Estimated at losses of $600 Billion per year These estimates cover all types of fraud, but do not include the losses investors incurred on major financial reporting frauds such as Enron or WorldCom Define Fraud Intentional concealment or misrepresentation of material facts in order to deceive Differentiated from errors by the intent to deceive Traditionally defined into broad categories: Defalcations Fraudulent financial reporting What is defalcation? Employee takes assets from the organization for personal gain Examples: theft, embezzlement ACFE divides into frauds due to Corruption Fraudsters use their influence in a transaction to gain personal benefit Examples: kickbacks, conflict of interest, bribery, economic extortion Asset misappropriation Theft or misuse of organizations assets Common schemes: skimming revenues, cash schemes, fraudulent disbursement, inventory theft, payroll fraud Defalcation may create misleading financial statements if stolen assets are