Internal Accountant’s Report to Management
The company is thinking about performing a full financial status review prior the release of an upcoming government contract bid. This report will provide supporting information for a full financial status review prior to bid. This supporting information will include the impact of occupational fraud and abuse on the company and how the governmental oversight of accounting and fraud affects the company. The report will also provide potential corruption schemes to be aware of in the company and a recommendation of types accounting evidence and methods of gathering such evidence to support the financial status review. The Impact of Occupational Fraud and Abuse on the Company
According to Wells (2011), Occupational fraud and abuse is defined as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Fraud and abuse are two totally different things; there is a litany of abusive practices that plague organizations, causing lost dollars or resources but not actually constituting fraud (Wells, 2011). Fraud is when a person steals from the company with the intentions of trickery, while abuse is when a person misuses equipment or take advantage of policies of the company. Occupational fraud and abuse can involve employees, managers, owners, etc. and can be misappropriation of assets, petty theft, fraudulent statements, corruption, false over-time, etc. All these things can place a financial burden on the company and can eventually affect the company’s reputation. A company’s reputation is an important factor when trying to be successful and if it is compromised, bankruptcy and/or closing their doors may be forthcoming. The effects of the U.S. Governmental Oversight of Accounting and Fraud on the Company
The U.S. governmental oversight of accounting and fraud has not been to great in the past and scandals was the result affecting...
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