Scribd
Upload
55 views1 page

B. Should The Company Have Told Jason and Maria The Results of The High-Level Audit? Why or Why Not?

While the investigative team wanted to tell as few people as possible about the audit results to maintain silence, Jason and Maria were the ones who first recognized the problems and it seemed right that they be informed of the outcome. The passage also lists six lessons that can be learned from the story around auditing, including the importance of an organization's control environment, the difficulties in detecting and proving fraud, and the need for auditors to investigate explanations rather than accept them at face value.

Uploaded by

XiaoMeiMei
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
55 views1 page

B. Should The Company Have Told Jason and Maria The Results of The High-Level Audit? Why or Why Not?

While the investigative team wanted to tell as few people as possible about the audit results to maintain silence, Jason and Maria were the ones who first recognized the problems and it seemed right that they be informed of the outcome. The passage also lists six lessons that can be learned from the story around auditing, including the importance of an organization's control environment, the difficulties in detecting and proving fraud, and the need for auditors to investigate explanations rather than accept them at face value.

Uploaded by

XiaoMeiMei
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

b.

Should the company have told Jason and Maria the results of the high-level
audit? Why or why not?

Whether or not Jason and Maria should have been told the results of the high-level
audit is also a matter of opinion. The investigative team is apparently trying to
keep its agreement to maintain silence by telling as few people as possible what
really happened. On the other hand, Jason and Maria were the ones who first
recognized the problems; it seems only right that they be told about the outcome.

Many lessons may be drawn from this story.

1. Auditors should view the condition of an organization's control environment


as an important indicator of potential internal control problems.
2. Fraud is more easily perpetrated and concealed when many perpetrators are
involved, and especially when management is involved.
3. Purchasing and payroll are two areas that are particularly vulnerable to
fraud.
4. Determining whether fraud has actually occurred is sometimes quite
difficult, and proving that it has occurred is even more difficult.
5. Frauds do occur, so auditors must always be alert to the possibility of fraud.
6. Auditors should not accept management's explanations for questionable
transactions at face value, but should do additional investigative work to
corroborate such explanations.

You might also like