Acc 556 Week 1

1028 WordsOct 20, 20115 Pages
Internal Accountant’s Report to Management | |Accountant | Memo To: Management From: Internal Accountant Date: 10/8/2011 Re: Government Bid Occupational fraud is defined as the use of a person’s job for individual enrichment through the purposeful mishandling or misapplication of his or her employer’s capital or assets (Wells, 2005). Occupational fraud can have a serious impact with far-reaching consequences. In 2004 for the Association of Certified Fraud Examiners (ACFE) conducted a survey that provided 508 usable studies of fraud for a total of over $761 million…show more content…
The final category is conflict of interest. A conflict of interest occurs when an employee has an undisclosed economic benefit in a situation. For example, maybe the employee has a family member who works for one of the companies bidding on a project. If the employee knows that the family member will benefit and does not disclose the information to his superior than that is a conflict of interest. To begin the review process there should be some knowledge of the processes and procedures in the accounting department. It may be a good idea to observe all of the procedures that go into creating the financial statements. Look for any weaknesses or questionable practices and create a list of questions. Then in the next phase the auditor can conduct interviews to get a better understanding of the accounting staff. Observations and interviews can set the groundwork and provide information into any nuances or potential fraud or abuse. Any material weaknesses found can be further explored. Another recommended method for completing a status review is to work back from the financial statements. Make sure that all balance sheet accounts are properly documented and choose a handful of transactions to verify. In verifying the transactions it is important to look at the original documentation for each transaction. It is important to ensure that all of the documentation is accurate and complete. If there are missing

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