Question: A 2010 study on fraudulent financial reporting by COSO notes the many ways in which long-lived assets can be fraudulently overstated, including: Fictitious assets on

A 2010 study on fraudulent financial reporting by COSO notes the many ways in which long-lived assets can be fraudulently overstated, including:
Fictitious assets on the books (WorldCom)
Improper and incomplete depreciation (Waste Management)
Failure to record impairment of assets, especially (Sun Microsystems)
Expired or worthless assets left on a company's books (Millacron)
Assets overvalued upon acquisition, especially in the purchase of a company (WorldCom) What substantive audit procedures might have detected these frauds?

Step by Step Solution

★★★★★

3.47 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To detect fictitious assets the auditor should have traced recent acquisitions to the fixedasset acc... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

330-B-A-A-B-R (1336).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

A 2010 study on fraudulent financial reporting by COSO notes ways in which long-lived assets can be fraudulently overstated, including: Fictitious assets on the books (WorldCom) Improper and...

What specific audit procedures might have led to the detection of Accuhealths fraudulent cash and inventory schemes?

What substantive audit procedures are often performed for purchases, payables, and cash payments?

12-39 A 2010 study on fraudulent financial reporting by COSO notes the many ways in which long-lived assets can be fraudulently overstated, including: Fictitious assets, on the books (WorldCom)...

In the Professional Judgment in Context case at the beginning of this chapter, we reviewed some of the pertinent findings from the COSO (2010) study on fraudulent financial reporting. The study notes...

A study on fraudulent financial reporting by one of the most popular internal controls frame provider, notes that there are many ways in which long-lived assets can be fraudulently overstated,...

II. Case-1 (Score 20) A study on fraudulent financial reporting by one of the most popular internal controls frame provider, notes that there are many ways in which long-lived assets can be...

Please help me with these! Note: Don't copy the answer on the internet, you can base your answer on the internet but don't copy it. Thank you! Exercise 1 A 20X0 study on fraudulent financial...

FRAUD stated in many ways, 12-19 LO8 Long-lived assets can be fraudulently overstated in many including: Fictitious assets on the books Improper and incomplete depreciation Failure to record...

need help for Question 1 and 2 of the assignment fir ACCT 221 FORENSIC BUSINESS INVESTIGATION. Pertains to WorldCom scandal. QAssuming WorldCom was a company operating in Australia at the time of the...

Hal Justin, the manager of a hotel that caters to traveling businesspeople, is reviewing the nonfinancial measures of quality for the hotels dry cleaning service. Six months ago, he contracted with a...

What is a honeytoken and how is it used by companies?

What is the value of 1 1 / / 2 ? Group of answer choices 5 6 0 - 5

Based on the research report, the euro is expected to appreciate by how much against the US dollar over the next year? A. 0.7 percent B. +0.7 percent C. +1.0 percent

Consult Paragraphs 4-8 of PCAOB Auditing Standard No. 15. Based on your understanding of audit evidence, did Arthur Andersen rely on sufficient appropriate audit evidence in its audit of the Chewco...

Consult Section 401 of SARBOX. How would Section 401 apply on the Enron audit? Do you think Section 401 would have improved the presentation of Enrons financial statements? Why or why not?

Consult Paragraphs 28-30 of PCAOB Auditing Standard No. 5. Identify one or more relevant financial statement assertions about at least one financial statement account related to the Chewco...

***Need a little help*** Information Technology- VMs Is there ever a time when it would be useful for an administrator should disconnect a VM from the network altogether? If so, what scenario would...

1. Perform a linear regression to predict statquiz from phobia., and write out the raw-score regression formula. Do the slope and Y intercept differ significantly from zero. Explain how you know....

The Clayton Manufacturing company is considering an investment in a new automated inventory system for its warehouse that will provide cash savings to the firm over the next five years. The firms CFO...