Governmental Bid Full Financial Status Review

Topics: Fraud, Political corruption, Government Pages: 3 (719 words) Published: December 19, 2011
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. Then, I will review the government oversight and corruption. I will then lay out my recommendations for the financial status review. Occupational fraud and abuse is defined as: "The use of one's occupation for personal enrichment through the deliberate misuse or misappropriation of the employing organization's resources or assets." (Chapter 1) This can range from petty theft to elaborate investment schemes. 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,...
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