Week 8: Discussion
In this discussion, please address several of these topics.
> Expectations Gap
> Auditors and management responsibilities regarding internal control
> Reasons financial reports may be misstated.
> Tactics used by fraudsters to increase net income on the income statement.
> Auditors duty if they uncover illegal acts.
> Possible defense tactics if and auditor is sued for negligence.
> In a fraud situation with financial reporting, who are the most likely culprits?
> Search for related party transactions.
> Big Bath Charge-off.
> Cookie jar reserves
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