IT Fraud Evaluate the Factors Research Paper

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[. . .] Auditors utilize their reports to highlight any uncommon elements of the audit evaluation, and the reports can be utilized to connect helpful details to decision makers that might not appear on the face of the financial statements. Internal reporting choices are essential in keeping regulatory authorities, investors, and staff members notified, and the format needs to be easy to make it comprehensible for the managers and investors. 2 choices are offered to the auditor for reports on the business's financial statements and internal control over reporting. One choice is to have 2 different reports; the fairness of the business's financial statements and the report on internal control over financial reporting. When utilizing this choice each report need to describe the standard responsibility and viewpoint shared in the various other reports. If the 2nd choice is chosen in providing the 2 reports, the reports ought to be incorporated. The incorporated report shares an unqualified viewpoint on the financial statements, management's evaluation of the efficiency of internal control over financial reporting ought to likewise be included and the efficiency of internal control over financial reporting (Louwers, Ramsey, Sinason, & Strawser, 2007).

Corporate management's responsibility for preventing and detecting IT fraud vs. The IT auditor's responsibility

The excellence of a company is figured out by how efficient its managers are in handling risks. For that reason, getting efficient risk management assists to shield the business from losses occurring due to bad accounting practices in addition to illegal tasks. Utilizing great controls safeguard managers from liabilities that might develop when accrediting financial statements utilized in yearly reports since when these reports are provided, they are likewise a representation of the business's internal controls. The internal control procedure starts with management as well as the attitude that management depicts with the business. Manager responsibilities consist of carrying out the policies and treatments utilized within the business, these policies and treatments are likewise utilized to develop the structure which is discovered within the internal control environment.

The main goal of the audit is to reveal a viewpoint on the financial statements. The duties of auditors are revenue recognition disclosure requirements, appraisal and appropriation related-party, deals liabilities, consisting of contingent liabilities; and going-concern status. An auditor is an independent professional who is certified to audit a business's financial statements. The auditor in charges of following generally accepted auditing standards (GAAS) that lead the efficiency of audits in collecting and assessing and examining the proof, and in releasing an audit report which contains the auditor's conclusion shared through viewpoint on the financial statements. Instead of developing brand-new information, the main goal of auditing is to include creditability to the financial statements prepared by management.

Assess how you would respond and what your recommendation would be based upon the resource constraints.

My feedback would be that companies comprehend the significance of information technology (IT) and with this understanding; they can drive their investors' value. The business need to understand the relevance of the reliance on the procedures of the IT. Numerous businesses make use of COBIT, which is an IT governance structure and supporting toolset that permits managers to link the gap in between control requirements technical problems and company threats. COBIT allows clear policy advancement and great practice for IT regulation throughout the company. COBIT highlights regulatory compliance, assists companies to enhance the worth obtained from IT, allows positioning and simplifies execution of the COBIT structure (ISACA, 2011).

Specific circumstance where you would determine that the potential risk and professional liability are expensive and discontinue your audit services.

Management needs to make it a concern to determine controls within the business. It is likewise vital for business to have appropriate controls in position to monitor their internal controls for information technology and reporting. Without the needed controls in position, the business can experience remarkable monetary difficulties due to fraud and mistakes and would likewise lead me to conclude that the possible threat and expert liability are expensive and I would terminate my audit services.

References

ISACA, 2011. COBIT Framework for IT Governance and Control. Retrieved from http://www.isaca.org/Knowledge-Center/COBIT/Pages/Overview.aspx

Louwers, T., Ramsay, R., Sinason, D., & Strawser, J. (2007). Auditing & Assurance Services: A Look Beneath the Surface. (2nd ed.). New York, New York: McGraw-Hill/Irwin.

Temple University. "Auditing ACCT 3596." Fox School of Business. 13th Ed. United States of America: Pearson, 2009. Print.

Wells, Joseph T. Corporate Fraud Handbook:… [END OF PREVIEW]

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IT Fraud Evaluate the Factors.  (2013, June 9).  Retrieved February 22, 2019, from https://www.essaytown.com/subjects/paper/fraud-evaluate-factors/7818693

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