17 Jun Management and Internal Control
Create a scenario where external auditors determined that a company’s internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.
Use the Internet to research at least two (2) accounting scandals within the past five (5) years. Based on the accounting scandals you researched, identify the accounts that the fraud had affected, and analyze the auditor’s responsibility to detect fraud. Next, suggest key internal controls that would have either prevented or detected the fraudulent behavior or transactions. Justify your response.
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