Accounting All-in-One For Dummies

Book IX

Auditing and Detecting Financial Fraud

Find out how to segregate duties to prevent and foil attempts to defraud your business or your customers by visiting www.dummies.com/extras/accountingaio.

In this book…

• Get up to speed on Sarbanes-Oxley regulations and reporting requirements. Discover the importance of these regulations and how the disclosures help investors.
• Formulate and implement internal controls, including segregation of duties, to help prevent losses from embezzlement and fraud. Don't make it too easy for personnel to steal from the business.
• Estimate the chances of finding material misstatements (serious mistakes or intentional fraud) in financial reports. Determine whether the risk of misstatement requires more planning to reduce the risk.
• Gather audit evidence and documentation to back up your accounting firm's audit opinion and convince management to take action.
• Examine a client's internal controls to determine how vulnerable it is to errors and fraudulent activities. Make a judgment on how reliable the internal controls are and whether they need improvement.
• Recognize the most common fraud schemes, so you can more easily identify signs of fraud. Train your staff and management team to recognize these schemes.
• Understand the motives and methods of financial ...