Auditors of all kinds would be wise to read up on the psychology of white-collar criminals, to better understand the rationalization vector of the fraud triangle: David Myers, the former controller of WorldCom, recalled thinking that he was “helping people and doing the right thing†while perpetrating one of the largest accounting frauds in history.Continue reading “The mindset of white-collar criminal”
Tag Archives: fraud
Outsource internal audit for greater objectivity
That’s the recommendation from the Institute of Chartered Accountants of India (ICAI), as reported by The India Express: “In the high-powered committee report on Satyam scam, we have proposed that internal audit should be outsourced and not be in house so that there is more independence. If the auditor is from the organisation, it isContinue reading “Outsource internal audit for greater objectivity”
Internal audit at Satyam
New charges in the Satyam scandal were laid by India’s Central Bureau of Investigation, for “creating fake invoices to inflate revenues by US$94 million and forging company board resolutions to obtain unauthorised loans worth US$265 million” according to this story in Accountancy Age. This comes after charges were laid on November 21 against the formerContinue reading “Internal audit at Satyam”
Enron chronicle provides some holiday reading
I have been on vacation for the last half of this month, and that along with Christmas has resulted in much less activity on this blog than is normally seen. Additionally, I have been immersed in a great book on the Enron scandal, titled “The Smartest Guys In the Room: The Amazing Rise and ScandalousContinue reading “Enron chronicle provides some holiday reading”
Sucks to be Seidman
By now, the verdict in the BDO Seidman lawsuit has been covered by all the major industry blogs. All the heavyweights have registered their opinions in this great swirling mass known as the blogosphere. The mainstream media has tossed it around this way and that. There is near unanimity amongst all commenters: Sucks to beContinue reading “Sucks to be Seidman”