Update: How COSO is changing corporate controls and auditor responsibilities

✍ Scribed by Paul Munter

• Publisher: John Wiley and Sons
• Year: 1998
• Tongue: English
• Weight: 684 KB
• Volume: 9
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.3970090212

✦ Synopsis

Fraudulent reporting is d i m u l t to detect. But several recent changes described in the professional literature are helping to more directly address the problem. The author's update includes lists of risk factors that the careful CFO must avoid.

y its very nature, fraudulent financial reporting is difficult to detect. The increasingly complex computerized accounting systems found in most large companies, coupled with the complex schemes used to perpetrate this crime, make it even more difficult to detect.

So how can this problem be controlled? The answers to this question are as complex as the problem itself. As J. Michael Cook, the AICPA's board chairman, stated on July 22, 1987, in testimony before the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee (the Dingell hearings), [See J.K.