This site describes in detail the different aspects of the fraud triangle. It also lists many different fraud risk factors and how to identify fraud risk. It thens describes in detail how to respond to the assessed fraud risks.
This is a great video that shows how to review cancelled checks through a bank statement. The video explains some advise for small business owners. This can be a review from last class!
The link I chose for audit fraud provides an introduction and overview of fraud in a financial statement audit. It also discussed characteristics of fraud in the audit process. The link discussed a variety of other aspects such as the importance of professional skepticism in an audit.
There was no imminent threat. This was made up in Texas, announced in January to the Republican leadership that war was going to take place and was going to be good politically. This whole thing was a fraud.
Edward Kennedy
This is a quote from Senator Edward Kennedy of Massachusetts providing his views about the Iraq war. Senator Kennedy was not the only one that felt the whole thing was nothing but made up, simply a reason to go to war. I found this quote on brainyquote.com.
No one will find me to have knowingly committed fraud.
Bernard Ebbers
Mr. Ebbers was co-founder & former CEO of now disgraced WorldCom. Mr. Ebbers is now in prison for having been convicted of fraud & conspiracy related to WorldCom’s financial records. Obviously, Mr. Ebbers made this comment prior to being convicted. He was convicted of the crimes in 2005. Mr. Ebbers’ quote also came from brainyquote.com.
How does chat work?
Professor: I wonder why no students have used the chat feature?
Students: We do not really know how it works.
Professor: Well could they make up a joke related to auditing somehow?
Students: We fail to see any humor in this! Why would we bother with a chat?
Professor: One reason might be to use a different type of resource in this environment since four different ones are required.
Students: Oh, so you are giving us an example
Professor: I actually wanted to see how chat works on tumblr.
David Letterman (some years ago): "President Bush was in New York City this afternoon. He was giving a speech imploring people to crack down on accounting fraud, lashing out and attacking accounting fraud. And I am thinking to myself, 'Hey wait a minute, isn't that how he got elected?'" —David Letterman
The url for this stolen joke is
http: //politicalhumor.about.com/library/blcorporatescandals.htm
Madoff and Friehling Quotes
“It was a nightmare for me. It was only a nightmare for me. It’s horrible. When I say nightmare, imagine carrying this secret. Look, imagine going home every night not being able to tell your wife, living with this ax over your head, not telling your sons, my brother, seeing them every day in the business and not being able to confide in them.”
- Bernie Madoff
“In what was the biggest mistake of my life, I put my trust with Bernard Madoff.”
- David Friehling, Madoff’s long-time auditor
When you think of fraud, Bernie Madoff’s ponzi scheme probably comes to mind. The first quote is from Bernie Madoff in prison, talking in an interview about what he did and the pressure it put on him having to keep his fraud secret to himself. The second quote is from Madoff’s long-time auditor, David Friehling. This is a great example of fraud auditors need to catch. For failing to catch the fraud, David Friehling also ended up in prison.
You can read more about the Madoff interview at:
http://nymag.com/news/features/berniemadoff-2011-3/
You can read more about Friehling’s at:
http://www.huffingtonpost.com/2009/11/03/david-friehling-madoffs-a_n_343946.html
