Week 1 Topic 2 review minimum of 150 words
I do not agree with the quoted statement due to the fact that if fraud has been found in any transactions in a business then we need to double check how this sort of cash fraud is affecting the financial statements because the financial statements could be way off no matter how big or small that amount of cash fraud is. As an ethical accountant and if doing an audit of this company then we need to double check the transactions to ensure how this fraud has affected the company financially then review with the business owner so he can go over it in detail with his managers, investors and employees so he can take proper action. “Fraudulent financial reporting is the misstatement of the financial statements by company management. Usually, this is carried out with the intent of misleading investors and maintaining the company’s share price.” (Freedman, 2018) This quote goes to show that fraud in accounting is more common now but auditors and accountants need to be on top of things to make sure that the cash frauds are not occurring by establishing strong internal controls and always have to investigate the cash frauds if they affect the financial to see how bad it was so we can fix it.
Word Count: 216
Freedman, J. (2018). What Is an “Ethical Issue” in Financial Accounting? Retrieved February 05, 2018, from http://smallbusiness.chron.com/ethical-issue-financial-accounting-57889.html