“When a company has a strong internal control structure, stockholders can expect theelimination of fraud.
Assignment
“When a company has a strong internal control structure, stockholders can expect theelimination of fraud. Further management and auditors are required by Sarbanes-Oxley Act of 2002 to consider IT application controls as well as physical human controls.” (Hall, 2019, p133).
Assignment question:
(a) Explain fraud and distinguish between employee fraud and management fraud.
(b) Using the fraud triangle theoretical framework show how fraud is committed inmultinational companies. Provide recent corporate scandal involving fraud/accounting misconduct as an example to support your answer.
(c) Critically discuss the statement that, when a company has a strong internal controlstructure, shareholders can expect elimination of fraud.
(d) In this age of high technology and computer-based information systems, why areaccountants concerned about physical (human) controls?
(25 marks for each question. 25marks X 4 = 100marks)
For an upper 2nd Class Honours (60% – 69%) mark:
Good comprehensive answer. Clear, logical, thorough with evidence of breadth and depth inreading. Understanding of inter-relationships between parts of the course and that of thesubject. A competent analytical approach is taken in the debate, and important influences are explored within the context of a balanced and well-presented discussion. There is alsorelevant referencing to appropriate authority, with the discussion containing no significant
errors and/or omissions.
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