Questions -
Q1. The Sarbanes-Oxley Act made sweeping changes in the way audit and investment firms conduct business.
1) Do you think the changes are sufficient to deter corporate fraud in the future? Take a clear position on this statement (agree or disagree).
2) Discuss three reasons why you do or do not feel Sarbanes-Oxley is sufficient to deter fraud.
Q2. A new initiative within Company XYZ is to reduce the company's exposure to fraud. You have been hired as a consultant to assist in improving internal controls. The CEO has asked which of the company's internal controls need improvement.
Discuss at least three of the common internal control weaknesses that make fraud possible.
Q3. Classify each of the following as either a) perceived pressure, b) perceived opportunity, or c) rationalization to commit fraud.
1. Poor credit history
2. Intent to pay back the money
3. High analysts' forecasts
4. Poor system of purchase authorization
5. Reluctance to prosecute fraudsters
6. Cocaine habit
7. Inadequate audit trail
8. No mandatory vacation
9. Dissatisfaction with employer
10. Unexpected medical bills
Q4. A former classmate from your college, now the CFO of a small manufacturing company, calls you with a revelation: "I suspect fraud in my company," he states bluntly. "I'd like to conduct some technology-based fraud detection methods, but I don't know where to start. I remember you took a fraud class back in grad school-can you help me out?"
Describe three methods your friend can use, listing pros and cons for each
Q5. List and describe the four types of evidence in the evidence square.