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"Audit Risk and Fraud" Please respond to the following: Create a scenario in which a company...

"Audit Risk and Fraud" Please respond to the following: Create a scenario in which a company conceals financial fraud from the auditing firm through the use of information technology. Next, suggest at least one (1) way in which an auditing firm can minimize its exposure to this risk. According to your textbook, planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan in an attempt to reduce audit risk to an acceptable level. Select a balance sheet account or income statement account, and discuss the type of audit procedure that would produce the most reliable evidence for that account balance. Defend your position.

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Expert Solution

Answer :-

  • On the off chance that the organization is making utilization of Tally or SAP or any sort of ERP to keep up the exchanges and exercises, there are numerous probabilities of extortion to exist in the budgetary articulations.
  • The genuine receipt bill will be distorted in the bookkeeping programming. The benefit esteem may be climbed to flaunt the better monetary position .
  • These days, everything is in online exchanges and no genuine receipt is being written.
  • Even while evaluating, it would be extremely testing to cross check and confirm the supporting records.

Approach to limit the hazard : -

  • Examining in ERP condition is a testing errand as there are numerous conceivable probabilities to adjust the monetary data presented.
  • One way is that processed helped review procedures will be useful in limiting the danger of potential frauds.
  • There exists different review parameters that would help in evaluating the viability of interior control and dependability of money related information.

ekkarill92 answered 2 years ago
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