How accounting firms should modify their audit procedures

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Reference no: EM131191170

Accounting Assignment: F & C International

Read the case study titled F C International prior to doing this assignment. Write a five to six page paper in which you:

1. Over time, there has been significant legislation passed, such as Sarbanes-Oxley, yet corporate fraud is still pervasive in today's business environment. Suggest three new ways that you believe will eradicate corporate fraud.

2. In the F C case, inventory manipulation was used to enact the fraud. Discuss the proper internal controls needed over inventory and how these controls will act as a deterrent to fraudulent activities.

3. For a moment, step into the shoes of Catherine Sprauer at F C International. Indicate what you would have done following each of the confrontations she had with the two employees who insisted that F C executives were involved in a fraudulent scheme to misrepresent the company's financial statements.

4. Discuss how accounting firms should modify their audit procedures to ensure the risk of financial fraud is minimized.

5. Discuss how the Securities and Exchange Commission (SEC) continues to fail to detect fraudulent activities in publically traded companies. Suggest a recommendation for improvement.

6. Evaluate whether legislation and regulatory agency oversight will increase or decrease corporate fraud. Explain your position.

Reference no: EM131191170

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