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does anyone here work for Veeva Crossix?
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I served and I think this is hilarious
Why this group is so silent?
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Tell me you don’t know anything about audit without telling me.
You’re an idiot. Straight up.
AU Section 316
Consideration of Fraud in a Financial Statement Audit
Section 110, Responsibilities and Functions of the Independent Auditor, paragraph .02, states, "The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. [footnote omitted]" fn 1 This section establishes requirements and provides direction relevant to fulfilling that responsibility, as it relates to fraud, in an audit of financial statements.
Lol, Is that why external audit only catches about 3% of fraud per the ACFE.
Audits aren't designed to detect fraud...
Audits detect material fraud. So why did first brands, Wire card, lukin coffee, Tricolor, and the rest not get detected.
Yes, you need to be aware that fraud may exist and exercise professional skepticism. No, the majority of an audit plan should not be focused on fraud unless you have a real reason to think fraud risk is elevated.
EY, reconsider your profession. You are confidently wrong.
It's really not a question of how gifted the auditors need to be. Audit firms, especially the large ones, aren't stupid. They are plenty gifted.
Consider any audit failure (Lehman, Enron, Worldcom). How many times was the auditor unaware of the conduct or not "gifted" enough to know what was going on.
Unless you want to talk about the scandal of carpet cleaner ZZZZ Best, auditors aren't idiots and they don't get duped. They (or at least the right people at the top) are some of the smartest, well-counseled professionals in the world.
That's because the external audit machine is a check the box practice. It's designed to meet the professional standard and reduce legal liability. We accept the frauds. That's why we lobby not to have fraud detection be a professional requirement. External audit only detects 3% of frauds per the ACFE. This is by design.