Problem: You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid. Include the following sections:
- Section I: The impact of occupational fraud and abuse on the company.
- Section II: U.S. governmental oversight of accounting fraud and abuse and its affect on the company.
- Section III: Potential corruption schemes to be aware of within the company.
- Section IV: Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review.