ACC 646_ Discussion_ Week 10_ Post 1

I hope to someday be able to become a CFE and continue with this line of work. I feel that

specifically the financial statement analysis will be the most useful and I also found it very

interesting. I work for a 225-employee company that is steadily growing and we recently

purchased a very small company to eventually fold into ours. I have discussed with the CFO

my interest in auditing and analysis and he is very encouraging for me to continue that in our

company. His specialty is analysis so he is very excited that someone else would also like to

work on this aspect of the company. He has me doing a small bit of trend analysis with the

company as I do payroll and assist Accounts receivable and a little of everything else. Since I

see so many aspects of the company, he has me looking for patterns and how to either

I think the concept that will impact me the most in my future career is the processing of

screening engagements. Having just completed the discussion post regarding oral reporting, I

have realized that this is something I should look for in an engagement. Or even clarify with a

client prior to accepting an engagement. I feel as though the entire concept is too risky to be

relied upon on its own. This is not something I ever would have thought about before this

course. Additionally, the exercise where we had to decide if we would accept or reject an

engagement based on the information provided really made me think. That case was pretty

clear cut, but they won't always be that clear. I learned that I need to look beyond

compensation and scope (is this a case that my skill set is equipt to handle) and consider the

reputation and history of the client as well.

When going into this class, I wasnt sure exactly what to expect. I thought the concept of

forensic accounting was something I had never experienced. However, a lot of the concepts in

this class are ones previously covered in various classes over the course of this and my

undergrad degree. One topic that always stands out is the fraud triangle. The fraud triangle

essentially says "individuals are motivated to commit fraud when three elements come

together: (1) some kind of perceived pressure, (2) some perceived opportunity, and (3) some

way to rationalize the fraud as not being inconsistent with one’s values.” (NWC, n.d.) I liked

applying that theory to the Worldcom fraud scheme. Additionally, I watch a lot of crime

dramas and learning about the fraud triangle helps me better understand the detectives

human morality by defining concrete categories for concepts like good, evil, right, wrong,

virtue, and vice. Therefore, the AICPA and the IMA have codified codes of ethics that their

respective members must abide by (Ishaque, 2020). This course has taught me that issues of

public trust are at the heart of accounting ethics and provide the foundation for legal and

regulatory responsibilities in the field.

leaders will provide an example of moral conduct (Fernandhytia & Muslichah, 2020). Ethical

decision assessment and implementation may vary based on the context, as opposed to the

basic principles and processes that may be easily automated for financial, inventory, and

production decisions. Some aspects of a model will work wonderfully, while others will not.

Since then, critical thought and judgment have been required when applying predictive

concepts to ethical dilemmas. When weighing the benefits of applying theoretical models to

ethical circumstances against the stress of doing so, doing so is worthwhile. These benefits

include preserving public trust, avoiding administrative probes and punishments, and

stabilizing stock prices.

The course's most intriguing and helpful takeaway is the importance of ethical behavior in

accounting. This article suggests that accountants should give ethics considerable

consideration to prevent ethical issues by analyzing fraudulent cases and determining the

involvement of accountants in the fraud, whether by willing participation in the crime or

ENRON case, the author Anderson had his license to practice law revoked and his character

smeared. The top brass of Enron was unquestionably unethical. Why leaders might act

unethically to the point of bringing down a huge corporation can be challenging to fathom.

The executives at Enron were motivated by ethical egoism when making moral judgments.

Financial statements of corporations would be accurate, truthful, and reliable if only

accountants followed the rules.

concepts can be adopted in the real-life setting. The course helps me learn about

characteristics that can help in the detection of fraud and criminal activities involving

accounting. One of the chief elements of the course that I found most interesting was the use

of information technology in the forensic accounting context. As the course has been

designed in an in-depth manner, I got the opportunity to learn and identify how an individual

might be motivated to engage in fraudulent accounting practices within an organization. As

instances of accounting fraud and malpractices have become extremely common in the

contemporary business landscape, the course can help me to use my learned knowledge and

skills in the practical setting to investigate.

The course helped me to strengthen my skills relating to performing analysis and problem-

solving. I can use these skills in the forensic accounting domain to uncover fraudulent

activities or malpractices. By using these skills, I will be able to design robust and effective

antifraud techniques and control measures in my organizational setting and play a

the domain to promote the adoption of responsible and genuine accounting practices. After

taking up the course, I have realized that I also need to develop appropriate digital skills so

that I can carefully assess financial data and identify manipulations or discrepancies.

This class was interesting especially because I was invited to sit in on my company’s end of

the year audit by the external auditing company. I was able to see first-hand the process

presented in the meeting allowed me to identify all the elements of the engagement.

Meanwhile, this class aided me in gathering the required documents for the audit such as bank

statements and journal entries.

Furthermore, the in-depth look at the fraud triangle and the AICPA code of conduct provided

me with resources for the future. These resources will provide the appropriate information for

helps explain the reasoning behind someone’s decision to commit fraud. We learned that

fraud takes place when three elements are present--pressure, opportunity and rationalization.

educate my co-workers about the ‘opportunity’ element and why we practice things like

separation of duties and documentation. I also find myself thinking of how we could improve

the management structure. Right now, the company has only 2 levels of management and

there is a lot of ambiguity within the company which could be an environment for fraudulent

behavior. Another layer of management may improve communication and oversight.

The skills about analyzing a company’s balance sheet and income statement. Because the

income statement and balance sheet are interconnected, I can look for unusual relationships

I have always met individuals who were either in tax, audit, or general accounting. d I attended

an accounting conference about 15 years ago and sat in a presentation about forensic

accounting. I was so intrigued with the profession. However, I felt that since I have been in

general accounting for a while that it would have been hard to transition into forensic

accounting.

of fraud. The concept that will be most useful in my personal life is the chapter on

professional responsibilities. This topic is relevant for all careers and areas of life. As an

accountant there are code of conducts that we must follow in our career. I prepare tax returns

as well. d I must have professional competence and due professional care and keep up with the

client’s to share their own information if they choose.

There were many concepts and skills Found truly interesting was Cressey’s Fraud theory. d The

theory being that a “violation of trust (fraud) occurs when the position of trust (opportunity) is

viewed by the trusted person as a rational means (solution) to solve a non-shareable problem

(pressure)” (Rufus, 2015, pg. 149). Being able to understand the different sides of the triangle

why and how they committed the fraud. The way that the economy is heading, auditors will

be needed more than ever to ensure that companies and institutions follow GAAP standards.

The skill that I find most helpful that I learned from this class is to always be on the lookout

for potential fraud. I think that when you have studied fraud investigations, you carry that

skepticism with you forever. Knowing what could become a potential issue allows you to

identify the signs quicker and makes you a better accountant. It is our job to ensure that

financial statements are reported correctly as we are the last line of defense before the BOD or

executives review it and then includes any fraudulent activity. Know that everyone has the

potential and the opportunity to commit fraud so it is very important that internal controls are

strong and that employees feel comfortable coming forward if they suspect any wrong doings.

These skills included gathering data and transforming data into evidence, which allows one to

provide an interpretation of the evidence so that one gains the understanding necessary to

provide the assurance to the courts or the public interest, depending on the setting. Effective

investigative skills, and competencies in the assessment of risk factors that could lead to

material misstatement” (N.U., & Okenwa, 2021, 451). The concepts learned allows us to

understand how to investigate and the steps needed to detect any potential fraud or

misstatements that can affect the relevance and reliability of the data reported on a company’s

financial statement. Given that I work as an Accounting Manager for a nonprofit

organization, I was able to acknowledge the importance of written reports and the need to

document any details that can potentially impact the outcome of a case or investigation. I

have found myself writing up summary reports after every meeting that I have with program

directors, peers, management, and other third parties, as it helps me document any needs or

concerns that the individuals may have expressed during our meeting. I can then always look

back at these reports to serve as guidance when constructing budgets and making revisions

when necessary. “More importantly, the forensic accountant’s objective is to provide a