The Value Of Forensic Audit

Sonya Fuentaz, an IRS-enrolled agent, has been contracted for preparing an annual income tax return for Carlito Alverez. Sonya is a little apprehensive about the engagement because she’s heard rumors that Carlito is a major drug trafficker with roots in Colombia. Sonia visits his home to discuss the details of his return and she’s shocked by the opulence she sees because the house is on 2 acres of land just west of the Intracoastal Waterway in Miami Beach. The land is completely surrounded by canals and connected to the rest of the city only via a narrow bridge that has small guardhouse and a security team protecting the entrance to the driveway. She sees other uniformed security guards walking

Below are the research questions and a main hypothesis that the writer posed about relationship among the study variables.

There are many different avenues that one could take in the field of accounting. It is a lucrative career with many areas of interest to be followed. I have chosen Forensic Accounting to further review and research. This paper will define forensic accounting, describe what it takes to be a forensic accountant, give some statistics about forensic accounting, and give my feedback on this potential career path.

Qualitative research seeks to answer the “why” and not the “how” of the research project that is being conducted, this is done through a complex system of analyzing unstructured information such as survey’s , questionnaires, interviews, interview transcripts, open end survey’s, focus groups, observations, emails, notes, video’s, feed back forms and photo’s; most of the time a qualitative report won’t depend on statistical evidence alone it must be accompanied by detailed facts and proven facts and not hypotheses or in accurate data, this can lead to misunderstanding of data findings and can through the whole aim of the research project off and waste valuable time.

source or from an external source, it is also important for a security organisation to reduce the

Research is an on-going process in which a scholar contributes his part through an adopted methodology and adds new knowledge to the pool of existing information. Keeping in view his constraints, the limitations of study are defined which at later stages, become the hypothesis for new researchers.

The researcher will answer the said questions in the light of theoretical and practical reason. The researcher will conduct simply survey to be able to arrive at the proper conclusion.

The field of accounting is no longer just for those who enjoy crunching numbers. Preparing financial statements, internal auditing, and tax accounting are only the tip of the iceberg. In today 's society of the "money hungry", the "sue happy", and the financially unfit, a new breed of accountant; the "Forensic Accountant" has emerged. Although Investigative Accounting has been around for years, it has only recently begun to transform into the science of accounting, hence Forensic Accounting. Forensic accountants are unique, looking beyond the numbers, digging deep to uncover fraud, hidden assets, and the like.

With 20 percent of the inventory missing, along with large portions of the written and computer records, Mary Soto should hire an external forensic account. Mary should not jump to conclusions and call the police just yet, but may need to do so according to the findings of the forensic accountant. Even if thefts have occurred calling the police and alerting the employees of her suspicion will not always be in the best interest of Mary or the company. In our textbook “Forensic Accounting and Fraud Examination” George Young asserts:

In today’s information world, monitoring and securing confidential data in companies has become a trending issue as most of the fraudsters are covert which makes them difficult to identify. Occupational fraud refers to stealing a company’s assets such as money laundering, employee violations of the code of conduct, and theft. Most of the fraud occurs through fraudster vested interests. Company executives or staff commit fraud based on the fraud triangle which is opportunity, rationalization, and pressure. Based on these three aspects fraudsters tend to commit these crimes both internally and externally of the company. According to the survey conducted by ACFE, it is said that small organizations are losing 5% of their total revenues each year. In that survey, the highest occurrence of fraud was committed with misappropriation of assets with around 85%. Financial statements fraud fell to 9%, and corruption is 37%. Even though financial statement fraud was low in the survey, its costs are huge with a loss of 1 million dollars (ACFE.com). Frauds occur not only on the inside of an organization but also from outside the company. In a recent study, organizations face high pressure to protect their assets from hackers like those that broke

During research of this topic, a problem statement has been formulated that I believe requires some researching into. As with any problem statement, it needs to address the 6 questions that always would get asked concerning research worthy problem statements namely.

Fraudulent schemes are often ongoing crimes that can last for months or even years before detection. It has been identified that there are three factors that often combine to lead individuals to commit fraud: pressure or an incentive to engage in fraud, a perceived opportunity and the ability to rationalize fraudulent behavior. Because fraudulent activities are usually well planned and intentionally covered up, it is difficult for the auditor to detect these incidents. Although fraud does not happen as often as misuse and error, when it does occur, it negatively impacts organizations as well as the stakeholders. Most fraudulent schemes can be avoided with basic internal controls and effective audits and oversight; however, they remain undetected due to following factors-

Over the past two years, corporate America has endured a plethora of fraudulent acts committed by those of high status within their respective corporations, most of which involve internal fraud. Internal fraud has two main aspects, misappropriation of assets and fraudulent financial reporting, with the focus of this discussion lying within the former. Misappropriation of assets is defined as fraud for personal gain. It is the most common type of fraud found among employees and frequently includes theft of cash and inventory.

Qualitative research can have a better effect on helping managers or organizations make a decision about a problem if the focus of the

In simple words qualitative research is the form of collection of data and analysis which relies on understandings with an emphasis on meanings. It emphasizes on the words rather than the quantity with a goal to incur a deeper understanding of the subject. It is inductive in nature and aims for a ‘complete’, ‘rich and ‘deep’ data.