...IMPORTANCE OF IMPLEMENTING FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES BUSINESS RESEARCH METHODS AIHAM MOHAMED AHMED TP029473 Table of Contents CHAPTER 1 3 1.1 ITRODUCTION 3 1.2 BACKGROUND OF THE STUDY 3 1.3 STATEMENT OF THE PROBLEM. 4 1.4 RESEARCH OBEJCTIVES 5 1.5 SIGNIFICANCE OF THE STUDY 6 1.6 SCOPE OF FEASILBILTY OF THE STUDY 7 1.6.1 SCOPE 7 1.6.2 FEASIBILITY OF THE STUDY 7 CHAPTER 2- LITERATURE REVIEW 8 2.1 DEFINITION OF FORENSIC ACCOUTING. 8 2.2 IMPORTANCE OF FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES. 9 2.2 FORENSIC ACCOUNTING HELPS TO ELIMINATE CORRUPTION. 10 2.3 FORENSIC ACCOUNTING INFLUENCES THE ORGANIZATIONAL PERFORMANCE 11 2.3 CURRENT SITUATION IN MALDIVES. 12 CHAPTER 3 – RESEARCH METHODOLOGY 14 THEORETICAL FRAMEWORK 14 3.2 TYPES OF DATA 16 3.3 SAMPLING DESIGN 17 3.4 DATA ANALYSIS 17 3.5 HYPOTHESIS TESTING 18 4. CONCLUSION 19 REFERENCE 20 IMPORTANCE OF IMPLEMENTING FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES. CHAPTER 1 1.1 ITRODUCTION The main purpose for this research to be carried out is to investigate the importance of forensic accounting in the business world, and how important it is to implement a solid forensic accounting system in the listed companies in Maldives. This chapter provides an overview of the study that contains the background of the study, the statement of the problem, research objectives, significance of the study the limitations faced while doing the...
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...Study of relation between effectiveness audit and management audit GHODRATOLLAH TALEBNIA Department Of Accounting ,Science And Research Branch ,Islamic Azad University,Tehran , Iran Gh_talebnia@yahoo.com Bahareh Banitalebi Dehkordi* Department Of Accounting , Shahrekord Branch , Islamic Azad University, Shahrekord , Iran banitalebi76@yahoo.com Abstract— Nowadays, one of the most critical strategies for innovative management is decision making optimization for increasing economicality, efficiency and effectiveness of resources used in institutes. In this regard, we should create organizational management control, and internal audit is one of the most imperative factors designed to help an organization accomplishes these objectives, which divides into two major categories: Financial Audit, and operational Management Audit. Many countries’ experiences have shown that from the standpoint that financial audit by itself does not eliminate informational management needs, with considering the advantages, shift in audit strategies toward operational audit which includes management audit and effectiveness audit is inevitable. In this regard, operational audit with integrated assessment of operational activities and organization procedure creates policies and useful methods and help recognized weakness and provide explanation for such flaws and also can pinpoint the opportunities for optimizing operational activities and detecting strength points. It also provides practical suggestion...
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...INTERNAL AUDIT PRINCIPLES The main and ancillary objectives of an internal audit The main objective of internal auditing is to assist members of executive and senior management in the effective discharge of their duties and responsibilities with regard to risk management, control and governance processes. To this end, the internal auditor furnishes them with analyses, appraisals, recommendations, counsel and information concerning the activities reviewed. The discovery of errors and fraud is the ancillary objective of internal auditing. The internal auditor as an adviser to members of the organization As an adviser, the internal auditor examines and reviews the activities of the organization in order to evaluate them with a view to furnishing members of the organization with advice, information and recommendations that will enable them to discharge their duties effectively. As an adviser, the internal auditor merely offers advice, gives information or makes recommendations. The ultimate decision whether or not to accept this advice or information or to implement these recommendations, therefore always rests with executive management. The internal audit activity should never possess the organizational power to force top executive management to accept the audit results. Management may decide to: 1. accept the auditor’s recommendations, in which case the internal auditor must ascertain that the corrective action taken is achieving the desired results, or ...
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...and current/potential investor has been threatened due to a lack of accountability and trust between the two parties. This issue has been the catalyst for many discussions regarding the proper procedures a firm should follow in order to provide consumers with a certain level of comfort in the validity of the firm’s financials. A byproduct of the years of lengthy debate has been an increased focus on the internal controls of public and private companies. Defined as the “methods put in place by a company to ensure the integrity of financial and accounting information…,” internal controls has proven to be both a lengthy and controversial topic within the accounting sector. The complexity of internal control requirements has been a topic of broad interest, and the subject of intense conversation for both accountants and business owners because of the increased time and money that is required. One of the major components of internal controls is a concept known as Segregations of Duties (SOD). Segregation of Duties is a regulatory requirement that was put into place to aid in the prevention of fraudulent financial behavior and reporting. Its main purpose is to hinder fraudulent behavior of key employees by requiring crucial functions of the business process to be performed by various people. Throughout this text there will be an exploration of the types of business risks...
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...EURIDIS Research Monograph SCHEMATIC EVALUATION OF INTERNAL ACCOUNTING CONTROL SYSTEMS Kuo-Tay Chen* and Ronald M. Lee# * Department of Management Purdue University at Calumet Hammond, IN 46323 U.S.A. chenk@pucal.bitnet # Erasmus University Research Institute for Decision and Information Systems (EURIDIS) Erasmus University Rotterdam The Netherlands rlee@fac.fbk.eur.nl ERASMUS UNIVERSITY RESEARCH INSTITUTE FOR DECISION AND INFORMATION SYSTEMS Schematic Evaluation of Internal Accounting Control Systems by Kuo-Tay Chen and Ronald M. Lee Monograph No. RM-1992-08-1 (August 11, 1992) EURIDIS Research Monograph Erasmus University Rotterdam, The Netherlands © Kuo-Tay Chen and Ronald M. Lee Permission to copy this monograph without fee is granted provided that (1) the copies are not distributed for the direct commercial purpose and (2) this copyright page including the copyright notice, the EURIDIS monograph number, and date appear. TABLE OF CONTENTS CHAPTER 1. INTRODUCTION ...................................... 1 1.1 BACKGROUND .......................................... 1 1.2 MOTIVATION ............................................. 3 1.3 OBJECTIVE OF THE STUDY .......................... 4 1.4 ISSUES OF INTEREST .................................. 6 1.5 SCOPE OF THE STUDY................................. 7 1.6 CONTRIBUTIONS OF THE STUDY .................. 8 CHAPTER 2. DECISION AIDS RESEARCH FOR INTERNAL CONTROL EVALUATION ............................................
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...Ashley Richardson 11/15/2013 Western Governors University AUO1 – Auditing and Information Systems Additional Study Questions/ Study Guide 1. Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? 2. Transaction processing systems - document financial activities 3. Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations 4. Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions * How is a flowchart used? 5. A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. * How is the accounting information system documented? 6. An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. 1. Data flow diagrams provide both a physical and a logical view of a system...
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...AUO1 – Auditing and Information Systems Additional Study Questions Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? Transaction processing systems - document financial activities Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions * How is a flowchart used? A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. * How is the accounting information system documented? An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. Nine reasons to document an AIS are (1) to explain how the system works, (2) to train others, (3) to help developers design new systems, (4) to control system development and maintenance costs, (5) to standardize...
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...Assurance services include attestation services, which are any services in which the CPA firm issues a report that expresses a conclusion about the reliability of an assertion that is the responsibility of another party. The four categories of attestation services are audits of historical financial statements, attestation on the effectiveness of internal control over financial reporting, reviews of historical financial statements, and other attestation services. Accounting and bookkeeping services Accounting services involve preparing the client's financial statements from the client's records. Bookkeeping services include the preparation of the client's journals and ledgers as well as financial statements. Tax services Tax services include preparation of corporate, individual, and estate returns as well as tax planning assistance. Management consulting services These services range from suggestions to improve the client's accounting system to computer installations. 2-1 2. 3. 4. 2-2 The major characteristics of CPA firms that permit them to fulfill their social function competently and independently are: 1. Organizational form A CPA firm exists as a separate entity to avoid an employer-employee relationship with its clients. The CPA firm employs a professional staff of sufficient size to prevent one client from constituting a significant portion of total income and thereby endangering the firm's independence. Conduct A CPA firm employs a professional staff of sufficient...
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...services include attestation services, which are any services in which the CPA firm issues a report that expresses a conclusion about the reliability of an assertion that is the responsibility of another party. The four categories of attestation services are audits of historical financial statements, attestation on the effectiveness of internal control over financial reporting, reviews of historical financial statements, and other attestation services. 2. Accounting and bookkeeping services Accounting services involve preparing the client's financial statements from the client's records. Bookkeeping services include the preparation of the client's journals and ledgers as well as financial statements. 3. Tax services Tax services include preparation of corporate, individual, and estate returns as well as tax planning assistance. 4. Management consulting services These services range from suggestions to improve the client's accounting system to computer installations. 2-2 The major characteristics of CPA firms that permit them to fulfill their social function competently and independently are: 1. Organizational form A CPA firm exists as a separate entity to avoid an employer-employee relationship with its clients. The CPA firm employs a professional staff of sufficient size to prevent one client from constituting a significant portion of total income and thereby endangering the firm's independence. 2. Conduct A CPA firm employs...
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...INTERNAL CONTROLS RUTASHA BRABHAM 1XACC/280 AUGUST 7, 2011 Internal controls are beneficial to a company’s structure and organizational design. Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization (internal controls are simply good business practices (Internal Audits, n.d.). There are five components of internal controls. Control environment, risk assessment, control activities, information and communication, and monitoring are the five components of internal controls. The control environment is connected to the outline of the company. The control environment involves the integrity, ethical values, the company’s philosophy, and the competence of the entity’s people (US Regents, 2011). The control environment provides the structure for a company’s policies and values for their day to day activities. Control environment factors include integrity and ethical values, the commitment to competence, leadership philosophy and operating style, the way management assigns authority and responsibility, and organizes and develops its people, and policies and procedures (US Regents, 2011). Risk assessment is a step in a risk management procedure...
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...I have over 20 years experience in accounting , management and auditing gained from : • Post conflict and conflict geographical locations in Burundi ( specifically Ngozi, Sudan, Uganda : • Environmental disasters in Tanzania; Mozambique and Kenya • HIV affected and infected communities in Botswana and The Zambia • Donor-funded projects, financial institutions and Government organizations. I have been involved in Financial management and management audits of various organizations. This include Project Planning and Management, development of Accounting Systems and internal control systems, Budget Management on Donor funded Non-Governmental Organizations, Project Management, Finance and Management Accounting and Staff Performance appraisal, both private and public sector Organizations. Currently am managing the Regional Finance and Administration as supervisor in the East and Southern Africa Region and I have been responsible for coming up with policies and procedures that are in line with the organizations’ long term strategies. This involved review of existing structures, and Advising management on possible implementation procedures and processes and the costs/benefits associated with them. I have therefore had to work with consultants and different authorities in order to accomplish these goals. The job is based in Uganda but I receive reports from all the above mentioned countries through email on a monthly basis by the 5th of every month, import into ACCPAC ...
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...period and later released reserves into income. When Cendant made acquisition, it took large restricting charges to create bogus income; this is shenanigan number 7. In subsequent period, Cendant released these reserves into income; which is shenanigan number 5. 2 Describe the failing of EY with respect to conducting an audit in accordance with GAAS. Include in your discussion any violations of the AICPA Code of Professional Conduct. The EY auditors provided accounting advice as well as audit services to CUC and Cendant in connection with the establishment and use of restructuring reserves. The auditors excessively relied on management representations concerning the appropriateness of the reserves and performed little substantive testing despite evidence that the reserves were improperly established and utilized. In the course of providing accounting and auditing services, the auditors failed to recognized evidence that the company’s establishment and use of the Cendant reserve did not conform to GAAP. According the GAAS, the auditor must maintain independence in mental attitude in all matters related to the audit, but the EY auditor failed to do so. And they did not exercise due professional care during the performance of the audit and the preparation of the report. The auditors performed little substantive testing despite evidence that the reserves were improperly established and utilized and they performed little substantive testing which cause the reserves were...
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...Enterprise Resource Planning (ERP) System Implementation and Impact December, 2014 An Introduction to ERP An Enterprise Resource Planning (ERP) system, as defined by the ISACA, “is an integrated software application that covers literally all functions of an enterprise, including sales and marketing, distribution and logistics, procurement, manufacturing, finance, and accounts, personnel and management reporting” (Sayana, 2004). It is currently the highest level of computer management and aids businesses with the integration of its processes. Rather than the typical management information systems (MIS) with separate systems for each function, an ERP system connects all the organization functions in order to create a more unified and accurate view of activities. While other companies may rely on more manual and time-consuming processes, ERP allows for company-wide operations (Matys, 2012). There are several factors that allow ERP to be a unique system within the business organization. As mentioned above, the integration of processes is very distinctive with ERP systems. Another characteristic is the ability to easily modify the database. With one module, it is much quicker and less evasive to perform system updates than it would be with MIS. Likewise, the streamlining of processes becomes possible in real time (Matys, 2012). Figure 1 below shows how the different business functions are independent in a basic MIS system. For business using an ERP system, the activities are...
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...Organizational design of Internet University 1. introduction This project is to create an organization of Internet University without central back office and describe the contents in designing the organization. Chapter 1 will provide the definition of the organization, moreover briefly illustrate the type of this organization and growing challenges, plus the reasonable solutions. The organizational strategy and structure will be mentioned concisely as well, but details of them will be respectively analyzed afterwards. Analysis of environments included external and internal factors, and illustrated effectiveness model of organization will be provided in chapter 2. Two organizational structures will be compared with each other in terms of vertical (efficiency) and horizontal (learning) in chapter 3. Certain approaches of organization steering will be proposed and analyzed in chapter 4. The effects of innovation and change to organization will be described in chapter 5 and finally the transaction cost will be evaluated in the last chapter. 2. organizational definition As mentioned this internet university will be constructed without the central back office, which means the processes such as recruiting, enrolling, teaching, hiring, paying, administrating, managing are all available on the internet. To design this organization and implement the idea, personally I suggest to start it as an small example, in this case the investment and cost could be effectively...
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...Managerial Organization Ismael Cruz University of Phoenix LDR531 Instructor Jerry Kahn 02/27/2012 Enron Managerial Organization Organizational behavior theories help manage organizations with managerial issues, such as Enron, an energy company based in Houston, Texas, as in October 2001, revealed the largest accounting failure and internal financial corruption in U.S. history. Perhaps, the lack of transparency, and dishonest executives cause the company’s failure. The lack of specific organizational-behavior theories reviewed in this paper, help identify the reasons for Enron’s failure, and how the establishment and adherence to such theories could avoid such problems. Enron’s History In 1985, Kenneth Lay created Enron by merging energy companies InterNorth and Houston Natural Gas, which became highly profitable through further diversifying and expanding its assets such as electricity plants, paper and pulp plants, gas pipelines, and other services. By 1992, Enron was the leader in natural gas sales n North America. From 1990 to 1998, the company’s stock had increased 311 percent, and its market capitalization was $60 billion by the end of 2000, which also received recognition as the most innovative company in America, by Fortune’s Most Admired Companies Survey (Roston, 2002). Enron’s Scandal President and Founder Kenneth Lay, with the aid of CEO Jeffrey Skilling, created Enron’s “special” board of executives, who were able to hide billions of dollars in deficit with a...
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