Fun Facts About Fraud and External Audit

Fraud is an interesting topic. If nobody was committing fraud, no one would find it. And witness fraud is one of the parties who may be the most interesting in a job in accounting. Sure, it’s a bit like saying that the best part of the body of Michael John Mayer is his forearm. Still, we can agree on the fact that the working accountant has the opportunity to be exciting.

Unfortunately, most accountants will find or will never witness a fraud throughout their careers. Depending on the report you read, only 2-9% of frauds are uncovered by external auditors and all these reports have a margin of error of 2-9%.

In fact, more fraud is discovered by mistake by the external auditor. Really more. In the same way that really more people reach their goal of losing 10 pounds before been following a balanced diet and exercising, but rather because Cryptosporidiosis invaded their favorite public pool.

Most of the time, a listener being a fraud would be the equivalent of a 13 year trying to find a crane available wrecking ball. If indeed he found one, he would not know what to do with. Technically, yes, I grant you, but the theory is different from reality. In real life, we know most of the time the person committing fraud. You can possibly identify the pressure that motivated him to commit fraud.

However, you understand that no matter who committed fraud, it will give a good look at the black butter to your client, since the median duration of fraud is 12 months or more likely give the same treatment to your firm because you did not detect in the past. This is why many firms decide to condone fraud and work with the client to it does not form a fold under the carpet when you will hide it.

The external auditor’s work can be confused. The external auditors are paid to answer the question: Is there presence of fraud in my company ?. It’s like getting paid to answer the question: Is my dress makes me fat ass ?. You will possibly capable of performing sophisticated analysis on the appearance of your clients buttocks, buttock and compare them with trends and ratios of other buttocks industry or geographic region. But in the end, your client does not want to hear (and you do not want to say) that their buttocks are the largest air that Kanye West’s ego.

As professionals fraud detectors, auditors sign a commitment letter that states something about: Despite our disconcerting ability to detect fraud, it is possible that there goes fraud that we do not find, and since you signed literally, you’re cool with ca.

In the reports on internal controls, the auditors also say things like: Your internal control looks good, but the food Chinese restaurant and as we all know how it ends its.

So to summarize, the forearms of Michael John Mayer are the best part of his body, the Cryptosporidiosis can help you get the body you want and the external auditors are not as good at detecting fraud.

The forearms of Michael John Mayer is a hypothetical example. We have not exactly noticed the forearm of Mr. Mayers, all we know is that the sexiest part of the body of Mr. Mayers is not his face. In addition, the use of cryptosporidiosis is not a good idea if your goal is losing your belly in accounting and you should avoid your public pool if it is the victim (an invasion of crypto, not potbelly).

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