You are an auditor for Woodson and Sons, a manufacturing company that is concerned about fraud activities in its procurement and inventory management processes. The company has been experiencing inconsistencies between its inventory records and actual physical inventory. Additionally, there are suspicions of collusion between some employees and external vendors leading to inflated procurement costs. The company has decided to implement a fraud risk management strategy based on the COSO framework. Your manager has asked you to write a company-wide newsletter outlining suggested enhanced controls based on the COSO framework and the key differences between the COSO and COBIT frameworks. Analyze how the control activities of the COSO framework prevent fraud.

Answer rating: 100% (QA)

Woodson and Sons Strengthening Controls to Mitigate Fraud Risk Introduction Woodson and Sons is committed to maintaining a strong internal control environment to ensure accurate financial reporting an... View the full answer