Too often, audits are performed on one process, one category, or one system: Earning Commissions, Windows Servers, or Wire Transfer. Each one of those is a separate silo (one for oats, one for corn, one for rice).
Tag Archives: fraud
It was a great experience for me.
Well, sort of. No one likes being audited (ahem). But it gave me a fresh perspective of how others feel when I audit them.
This is the first of 3 posts; this post contains some background info on the project that was audited, and the second one discusses the audit and the results, and in the third post, I describe my perspective on the whole thing, and some takeaways.
While you may not be tasked with leading an investigation, you might need to work with those working on such an investigation. Either way, do you know the basics?
This quick, 5-question quiz from the Journal of Accountancy will indicate what you know AND what you don’t. And whether you get each answer right or wrong, the answers provide additional information. Continue reading
Back in the 1960s, Abagnale posed as an Pan Am airline pilot, a pediatrician, an FBI agent, and a lawyer. He was a master at conning people and passing bad checks. He even conned his dad (see ‘First Con’ heading).
Here’s my list of the top 10 reasons to be an IT auditor:
10. You have access to all systems, data, and people (with a business reason, of course). Employees rarely ignore you.
9. You can uncover fraud, mischief, ignorance, and just plain laziness. Either way, you “add value to the business” (yeah, I hate that term too, but it is what audit is about, and so appropriate).
Free ACL tutorials are available on YouTube, along with a lot of videos with talking heads. The tutorials walk you through how to do a couple tests, but I found the video resolution to be rather poor. Maybe it’s my equipment, maybe it’s the result of a company trying to adapt some tutorials they already have to another delivery method.
Check out the 10-question quiz at The Journal of Accountancy regarding internal control. You don’t need to be a CPA to take it, as only 1 question leans toward the financial realm. Like most good quizzes, the answers are provided at the end, along with an explanation.
Most auditors and security analysts have never performed a wastebasket audit. Why do a trashcan audit?
Richard Chambers, the president and CEO of the IIA, noted 5 defining events and their impact on internal auditing in the 90’s decade.
- Adoption of the Professional Practices Framework (2002)
- Financial Fraud and the Ensuing Corporate Failures (2002)
- Cynthia Cooper Named a Time Magazine “Person of the Year” (2002) – whistleblower at WorldCom (I had to look it up myself)
- Release of The PCAOB’s Auditing Standard Number 2 (2004) – which was then superseded by AS 5
- Global Economic Crisis (2008-2009)
Catch all his comments here. I think #2 is going to keep occurring with surprising regularity.