Fraud. The very word strikes fear in the hearts of good men and women around the globe. Fraud can take down a company, fraud can destroy shareholder wealth, and fraud can make you very, very rich. Just kidding about the last one. Eventually, if you are committing a fraud, you will get caught. Sooner orContinue reading “How to prevent the fake supplier fraud”
Category Archives: Auditing
SEC looking into auditors in options backdating investigation
The SEC has announced it’s going to be including companies’ external auditors in their investigation into options timing abuses commonly known as backdating. Authorities were said to be looking at what auditors knew about company manipulation of options’ grant dates and exercise prices to boost their value to executives who got them. About 30 companiesContinue reading “SEC looking into auditors in options backdating investigation”
Delving into union contracts
I spent the better part of today and yesterday auditing a client’s payroll system. They have recently switched to a new system and the difference between old and new is dramatic. The reports are easier to read and understand, the font is easier on the eyes and brain, and the electronic interface is prettier too.Continue reading “Delving into union contracts”
Mapping out my clients after a year in public practice
I have been playing around with Windows Live Local lately, Microsoft’s competition for Google Maps. I decided to map all the clients where I’ve been in the last year with my firm. For the blue ones I just had to search for the business name, but the red ones represent clients that I had toContinue reading “Mapping out my clients after a year in public practice”
Materiality in auditing
Materiality is a concept in auditing that attempts to set a dollar value guideline for the scope of evidence testing at the substantive level, analytical procedures, and to a lesser extent, controls testing. According to Krupo: “Materiality is the smallest misstatement of a company’s finances that would cause a person to change how they valueContinue reading “Materiality in auditing”