Tuesday, February 25, 2020

GAAP rules that will assist to determine the fraud in the key areas Research Paper

GAAP rules that will assist to determine the fraud in the key areas - Research Paper Example According to the research findings auditor has highlighted these major problems. †¢ Leases on technology assets seem inflated †¢ Understated of e Commerce state tax payment †¢ Fictitious employees receiving post-employment benefits †¢ Hiding cash in order to help in future quarters where earning do not meet analyst’s expectations †¢ Concealing inventory shrinkage because it seems low for the industry There are many GAAP rules that assist to determine if the fraud is taking place all these areas. International GAAP, ISA 240 the Auditor Responsibilities Relating to Fraud in an Audit of Financial Statements recognizes that the misstatement in the financial statement can arise from the either fraud and error. The distinguishing factor is whether the underlying action that resulted in the misstatement was intentional or unintentional. The above all situations are supposed to be a fraud because the audit team found all these activities as a fraud. In relation with IAS 240, the fraud is a criminal activity. In addition, it is not a role of the auditor to determine whether the fraud is has actually occurred. That is the responsibility of a country’s legal system. Auditor must only be aware of the impact of fraud on the accuracy of financial statements. The GAPP rules state that the auditor is responsible for obtaining reasonable assurance that the financial statements, taken as a whole, are free from material misstatements, whether fraud and error. ISA 315 identifying and assessing the risk of material misstatements state assist to determine the determine fraud in the above mentioned situation. The GAAP rules that assist to determine the fraud in above situations are mentioned below separately. Leases on technology assets seem inflated: Technological assets are treated as the major asset of the company. Inflated leases amount can manipulate the figures of assets in statement of financial position of the company easily. In the light of IAS 240, the Auditor Responsibilities Relating to Fraud in an Audit of Financial Statements, Fraudulent financial reporting techniques are treated as Fraud. These are the techniques that can misstate the accounts to make the company look better/worse than it actually is. In this situation the GAAP assist to determine the fraudulent situation in this scenario because it is the possibility that the management of the company want to manipulate the figures of assets to make up the statement of financial position. Understatement of e-Commerce state tax payment: Misrepresentation of tax payments can show the better profitability figures in statement of comprehensive income. According to GAAP, Auditor has the responsibility to assure the financial statements are presenting true and fair view. That’s why the GAAP assist to determine the fraud in this case because if this activity is not treated as fraud, then the auditor will not be able to give the reasonable assurance on the truth and fairness of financial statements of the company. Fictitious employees receiving post-employment benefits: IAS 200 overall objective of the independent auditor state that the auditor is responsible for providing â€Å"an opinion in whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework†. The company accounts can be manipulated in material manner by the technique to giving post engagement benefits to fictitious employees. In this case, it is responsibility of the auditor to treat this activity as fraud to fulfill his primary aim of the audit. Hiding cash in order to help in future quarters where earning do not meet

Saturday, February 8, 2020

Things which are Important in Our Lives Essay Example | Topics and Well Written Essays - 1000 words

Things which are Important in Our Lives - Essay Example The ways that things make our lives more comfortable are countless. From the moment we wake up until we sleep, things are there make our lives easier. We sleep on a thing called the bed and wakes up with the alarm of another thing called alarm clock. Our breakfast would not have been prepared if not the convenience of cooking things in the kitchen. When we prepare ourselves either for school or work, things are again present for us. We dress in clothes appropriate for us and go to school or work in another form of thing which is a car. Even our place of work school is filled with things. In school, computers make studying easier especially the internet. Our daily lives are basically filled with things to make it convenient for us. Things also enable us to do a lot of things which otherwise would have been difficult to do without those things. I can concretely cite the example of a computer and internet without which studying and doing research would have been very difficult. If I have to do a term paper, I will have to physically go to the library and scour through the catalogs before finding the books and magazine that I need for research. After finding those materials that I need, I have to borrow them physically or copy the text if I am not allowed to bring the books at home. I would have to laboriously go all through them which will take a lot of time and effort. And even writing the report would require a great deal of effort because I have to manually type them. The thing called computer and internet releases me from those burdens and allow me to study better. I can scour through books and journals and other articles right in the comfort of my home. This is faster and more convenient. The information I c an find using the computer and the internet in minutes may take me hours if I will do it physically in the library.Â