Fraud Investigation Research Report for ACCT 1111 Assurance and Forensic Accounting

Research Assignment
ACCT 1111Assurance and Forensic Accounting
Fraud Investigation Research Report

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Research Assignment
Table of Contents
Introduction..............................................................................................................................3
Part A........................................................................................................................................3
1. Summarising key issue.....................................................................................................3
2. Identifying three fraud symptoms..................................................................................3
3. Summarising responsibilities...........................................................................................4
Part B.........................................................................................................................................5
1. Key issue of Quintis Ltd financial collapse....................................................................5
2. Summarise three potential fraud symptoms..................................................................5
3. Reviewing disclosure of Key Audit Matters...................................................................6
4. Describing opinion on auditor’s duties...........................................................................7
Part C........................................................................................................................................8
Conclusion.............................................................................................................................8
Bibliography.............................................................................................................................9

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Research Assignment
Introduction
In this assignment three parts and several topics based on accounting of Quintis Ltd
will be introduced. As per Part a few answer will be introduced by the help of a video called
false assurance and respectively Quintus financial collapse will explained in following Part
B. This following article is a research based assignment which has three parts. In following
Part C, a brief conclusion about whole learning based on Quintis’s accounting and financial
collapse will be explained as per this particular research based assignment. Brief discussion
about Key Audit matter (KAM) will be introduced in order to maintain auditor duties and
responsibilities.
Part A
1. Summarising key issue
False Assurance can be considered to be a superior quality film that can be utilized as
a tool for training that, by means of discussion or else discussion-associated practices, can
augment knowledge. This not only includes a wide range of teams particularly in-house,
counting teams of finance as well as internal audit, but also that of board members.
Particularly, this video drama was formulated by the “Institute of Chartered Accountants
England and Wales” and intends to assist in thought-generating discussions regarding the
way accountants, assessors and company directors need to act when encountered with
complicated circumstances. In particular, this film takes into account the account of two
unstable years in of a fictitious business firm titled ‘D-Merton’, and divulges the way
activities of the firm’s Executive Directors brought the same to its knees.
Essentially, there was inadequate vigilance and guts of Board of Directors of the firm. Also,
there was also failure to recognize and inspect red flag concerns by external assessors. It can

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Research Assignment
be said that the film is divided into four different segments. Essentially, at the closing of each
segment, the respondents will be offered the opportunity to replicate and interacting opinions
and debate regarding what they could have carried out in a better way instead, under similar
state of affairs. Essentially, the issues identified in the film are both timely as well as
pertinent to reality of Cyprus and can deliver a foundation for discussion regarding solutions
and superior practices between ACI facilitators as well as the partakers of KPMG Cyprus.
2. Identifying three fraud symptoms
Fraud symptoms can be classified into analytical symptoms, accounting otherwise
documentation symptoms, symptoms of lifestyle, tips with complaints, symptoms of control
together with behavioural along with verbal symptoms.
Analytical Symptoms: Revenue (high), low sales discounts, low sales returns, expense of
bad debt, high accounts receivable, low allowance for bad debt, low cash in comparison to
reported sales revenue (Purda &Skillicorn, 2015)
Documentary Symptoms: Documents missing in the cycle of revenue, ledgers associated to
revenue not balancing (for example sales as well as receipts of cash), considerable bank items
as well as other reconciliations, unapproved or else unsupported balances associated to
revenue
Symptoms of control: Overriding important internal control actions linked to revenue cycle,
weaknesses present in the cut off procedures otherwise other important accounting
procedures.
3. Summarising responsibilities
The audit undertaken by TYSL accountants need to be as per ISA 240 indicates that
accountabilities of auditors associating to fraud in process of audit of financial assertions.
According to regulations stipulated under “ASA 240.5/ISA 240.5”, essentially the TYSL