Overview
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Learn how to create internal controls to keep accounting in check in your organization.
Syllabus
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Introduction
- Increasing financial statement integrity
- Classic cases: WorldCom
- Errors in the reporting process
- Disagreements in judgment
- Fraud: Theft and fraudulent financial reporting
- The fraud triangle
- The control environment
- Segregation of duties and physical control
- Proper procedures and documents plus independent checks
- Classic cases: Enron
- Why do companies manage earnings?
- The earnings management continuum
- Is earnings management ethical?
- Accounting credibility crisis in 2002
- Public Company Accounting Oversight Board (PCAOB)
- Constraints on auditors
- Constraints on management
- Classic cases: Arthur Andersen
- Internal auditors
- External auditors
- What do auditors do?
- Are external auditors really independent?
- Classic cases: Stock market crash of 1929
- What is the job of the SEC?
- Common SEC filings: Registration statement, 10-K, and 10-Q
- Common SEC punishments
- Internal controls and management credibility
