Foreign Investigation Engagements Techniques PDF
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FINANCIAL FRAUD
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Foreign Investigation Engagements Techniques and their application..................................3TASK 2............................................................................................................................................5Evaluating the Application of Techniques used in Dispute Resolution Engagement............5TASK 3............................................................................................................................................8Evaluating Role of the Expert Witness in Forensic Accounting Engagement.......................8TASK 4..........................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONIt is a known fact that Fraud is a criminal act of intentional misrepresentation in the eyesof law. Financial Fraud, as the name suggests, is an act carried out with an intention to deceivesomeone through the manipulation of monetary transactions so as to achieve personal gains(Blanton, 2012). Unlike normal fraudsters, the individuals involved in such conspiracies arebusiness professionals holding substantial credibility as well as in-depth knowledge regardingtheir victims as well as the method they would use to deceive them. The most common onesinclude Phishing, Identity Fraud, Ponzi & Pyramid schemes as well as scams related to financialstatements. Financial Statements Fraud is mainly executed by perpetrators that forge anorganization's data with a motive to project an image of prosperity and strength of that particularbusiness entity.This report aims to critically appraise the subject of Financial Statement Fraud byanalysing its deterrence, detection as well as investigation. For this purpose, a comparative studyin regards to countries that have prevalent regulations to those that don't are looked at. Thesecountries are Estonia and Australia. TASK 1Financial Statement Fraud has become one of the major problems in the recent years.With new standards and regulations being formulated and implemented every now and then, ithas become quite difficult for businesses from keeping their earnings to themselves. Thus,leading business professionals to sought means that misstate their financial statements in amanner which boast or deflate their accounts so as to avoid excessive payment of taxation andget personal gains. This requires a number of knowledgable individuals that are highlyspecialised in their work to deceive public in plain sight. One can relate the advent of suchoccurrences towards the poor quality of corporate governance standards, due diligence, presenceof corruption and bureaucracy in the company as well as economy (Donelson, Ege and McInnis,2016). Financial statement frauds can be controlled by implementing internally controllingactivities, understanding situations and applying laws. Government of Australia has implementedCommon wealth Fraud Control framework, auditing standards, governance structures and manymore for such purpose. The description of each are the followings:15569761781
Commonwealth Fraud Control framework: it is one of the legislation governed byAustralian government describing key elements for controlling frauds. It is an instrument whichbinds all organisations of respective country to prevent, detect, report as well as investigate byimplementing strategies. If any entity is found doing fraud acts in financial statements, variouspenalties are charged along with cancelling their licences to perform activities for earningrevenues. Such framework outlines essential requirements by putting a comprehensive fraudcontrol program. Auditing standards: Various auditing standards are are also provided by AustralianGovernment agencies, Australian Institutional frameworks such as AS 2401, AS 99, AU 13 andmany more. Auditors are responsible for maintaining or eliminating fraud transactions performedwhile preparing financial statements. It is mandatory for all Australian organisations to considerall accounting standards while preparing financial statements. They should be according to theset standards otherwise firms have to suffer huge losses. These standards helps is identifyingerrors and determining responses fo1556976178r performing audit procedures. Proper guidancesare provided with regulatory enforcement authorities. Corporate Finance institute time to timesends various auditors for conducting audits in order to achieve significant responses in financialstatements, material misstatements (Dorminey, Fleming, Kranacher and Riley Jr, 2012). Government structures: preventive measures are provided by government structures tocontrol all fraudulent activities at the time of preparation and analysis of financial statements.Activities related to asset misappropriation, corruption impacts financial statements which resultsin unauthorized benefits to organisations. Different manners are structured to identify fraudulentfinancial statements buy government authorities. Common approached are described forimproving such statements to unhide obligations in balance sheets and correctly disclosingfinancial transactions in appropriate and effective manner. Thus, Commonwealth Fraud Control framework, Auditing standards, Governmentstructures are some of the frameworks governed by Australian authorities for the purpose ofpreventing fraudulent statement frauds and controlling them at right time. Using suchcontrolling measures, proper financial statements can be prepared and published for takingdecision making by stakeholders(Dorminey and et.al. 2012).2
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