Accounting Discussion

As discussed in the video introduction, accounting fraud in large public companies has produced its fair share of major news headlines over the past 20 years. Even though laws like Sarbanes Oxley have been put in place to minimize the opportunity for financial fraud, the threat is still real in today’s corporate environment.

Imagine you have been hired to oversee the financial audit of a major company in your city. During the audit, one of the company’s employees has disclosed a potential fraud situation involving an accounting department supervisor.

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  • In addition to alerting your own manager about the situation, which one of the following options below would you choose to perform next as you proceed with your investigation? Only choose one.
    • Option A: Gather additional information by interviewing other company employees.
    • Option B: Meet with other members of the management team to discuss the company’s current internal controls for preventing fraud.
  • Why do you feel your choice would be most effective?
  • Discuss the reasoning for your selection.

Reference Articles

Biggest Corporate Scandals 2015

U.S. Charges Penn West Petroleum, Ex-Executives With Accounting Fraud

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