Full Financial Status Review Paper

Governmental Bid Full Financial Status Review
Ardyth Smith

Instructor: Jennifer Brown

November 14, 2011

University of Phoenix

Internal Auditor Letter

November 14, 2011

Always Accurate CPA Firm

RE: Government Bid and Financial Status Review

Dear Management:

I would like to present information to recommend a full financial status review prior to submitting a government contract bid. I will discuss the impact of fraud and abuse on a company, government oversight of fraud and abuse, the potential corruption schemes to be aware of and the recommended types of accounting evidence and methods of gathering evidence to support the financial status review. I will present the definitions for each and possible impacts of
Each impact the company in various, but even the petty thefts can add up. According to the 1996 Report to the national on Occupational Fraud and abuse, The key is that the activity 91) is clandestine, (2) violates the employee's fiduciary activity, (3) is committed for the purpose of direct or indirect financial benefit to the employee, and 94) costs the employing organization assets, revenues or reserves." (2002 Report to the Nation) Fraud involves three points that make up the hypothesis, opportunity, pressure and rationalization. The early works of Edwin H. Sutherland is the basis of current literature. Sutherland was interested in the elite upper-world business executive, which was against shareholders or the public. Donald R. Cressey, who was a student at Indiana University with Sutherland, concentrated on those who embezzled. Dr. W. Steve Albrecht was instrumental in creating the certified fraud
The SEC generally has permitted the private sector, FASB, develops the accounting principles for the United States. So the SEC doesn't play a major role in developing accounting principles, just asking for clarification or speed of action on items in interest. The need for the ability to meet the resources to complete the bid is necessary for evaluation by the government .
Corruption can be defined as "an act in which a person uses his position to gain some personal advantage at the expense of the organization he represents." (??) Corruption schemes fall into four categories, bribery, illegal gratuities, economic extortion and conflicts of interest. These can include kickback schemes, diverting business to specific vendors, overbilling to name a few. These are usually perpetrated by managers or owner/executives. These types of cases entail authorization to approve or to assist in the