审计学一种整合方法15版英文教辅资源 arens15_irm_11
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Types of Fraud
The two types of fraud considered in the context of auditing financial statementswere first introduced in Chapter 6, so we do not spend a significant amount of time on this issue. To help illustrate the differences, we ask students to provide specificexamples of fraudulent financial reporting and misappropriation of assets for therevenue and collection cycle, acquisition and payment cycle, and inventory and warehousing cycle. We useOH-11-1to record their responses. Students will oftenbe able to provide many examples of misappropriation of assets that they havepersonally observed, and it often leads to a lively discussion. As students identify numerous types of fraud possibilities, we emphasize that certain immaterial frauds (e.g., petty theft of supplies) fall below the scope of auditor responsibility.This helps illustrate the auditor’s responsibility is in the context of material misstatements inthe financial statements. Review questions 11-1and11-2 are also useful indistinguishing fraudulent financial reporting from misappropriation of assets and requiring students to provide examples of each. Problem 11-31can be used for the same purpose. Problem 11-27is good for distinguishing errors from fraud.
Chapter Opening Vignette
Students will have a general awareness of several recent high-profile examplesof fraudulent financial reporting, but are generally unaware that there are manyother earlier examples. The vignette makes two central points. First, fraudulentfinancial reporting is not just a recent occurrence. Second, major frauds are often followed by significant changes in the profession. In addition to the requirements forconfirmation of receivables and observation of inventory following the fraud atMcKesson-Robbins, subsequent waves of fraud later gave rise to peer review and the “expectation gap” auditing standards issued in the late 1980s. We find that this helps students understand the underlying reasons for the Sarbanes–Oxley Act andformation of the PCAOB, and it helps put the recent focus and criticism of theauditing profession into a larger context of events.
Chapter 11
Fraud Auditing
Chapter 11 provides a focused discussion on the auditor’s responsibility formaterial misstatements due to fraud, which is critically important to the auditingprofession.While auditors have always had a responsibility for the detection of fraud,recent examples of fraudulent financial reporting have greatly increased interest inthe subject of fraud auditing. There is tremendous student interest in the subject,and it is important for students to understand tuditing standards, as well as the conditions for fraud and areas of specific fraud risk.
The two types of fraud considered in the context of auditing financial statementswere first introduced in Chapter 6, so we do not spend a significant amount of time on this issue. To help illustrate the differences, we ask students to provide specificexamples of fraudulent financial reporting and misappropriation of assets for therevenue and collection cycle, acquisition and payment cycle, and inventory and warehousing cycle. We useOH-11-1to record their responses. Students will oftenbe able to provide many examples of misappropriation of assets that they havepersonally observed, and it often leads to a lively discussion. As students identify numerous types of fraud possibilities, we emphasize that certain immaterial frauds (e.g., petty theft of supplies) fall below the scope of auditor responsibility.This helps illustrate the auditor’s responsibility is in the context of material misstatements inthe financial statements. Review questions 11-1and11-2 are also useful indistinguishing fraudulent financial reporting from misappropriation of assets and requiring students to provide examples of each. Problem 11-31can be used for the same purpose. Problem 11-27is good for distinguishing errors from fraud.
Chapter Opening Vignette
Students will have a general awareness of several recent high-profile examplesof fraudulent financial reporting, but are generally unaware that there are manyother earlier examples. The vignette makes two central points. First, fraudulentfinancial reporting is not just a recent occurrence. Second, major frauds are often followed by significant changes in the profession. In addition to the requirements forconfirmation of receivables and observation of inventory following the fraud atMcKesson-Robbins, subsequent waves of fraud later gave rise to peer review and the “expectation gap” auditing standards issued in the late 1980s. We find that this helps students understand the underlying reasons for the Sarbanes–Oxley Act andformation of the PCAOB, and it helps put the recent focus and criticism of theauditing profession into a larger context of events.
Chapter 11
Fraud Auditing
Chapter 11 provides a focused discussion on the auditor’s responsibility formaterial misstatements due to fraud, which is critically important to the auditingprofession.While auditors have always had a responsibility for the detection of fraud,recent examples of fraudulent financial reporting have greatly increased interest inthe subject of fraud auditing. There is tremendous student interest in the subject,and it is important for students to understand tuditing standards, as well as the conditions for fraud and areas of specific fraud risk.