MF Global
Discuss the key difference between conducting a financial audit and a fraud audit, and the related level of responsibility of the auditing firm.
Financial audits are typically carried out by certified public accountants or outside agencies or firms that work directly on behalf of individual companies. At times financial audits may be initiated by government entities. The audit itself is more of a "double-check" of financial reports and practices (Weinberg, 2003). Financial audits are deemed complete upon verification that numbers are accurate. Completed financial audits may prove or disprove information, but discrepancies will typically not result in the same serious consequences as those uncovered during a fraud investigation or audit.
Fraud auditing usually comes at the demand of the U.S. court system - usually the work is carried out by the government or privately-held third parties. Fraud audits look for dishonesty and hidden figures. They probe deeper than the average financial audit. A fraud audit may not be complete until auditors have the evidence they need or a court is satisfied. If a fraud is revealed or confirmed, serious legal repercussions will result. Financial auditing firms have a responsibility to uncover the warning signs of fraud; however, the fraud examiner has ultimate responsibility for the more forensic fiscal checks and balances that reveal misappropriations and deception (Spencer, 2011).
Investors and portfolio managers are typically outsiders when it comes to internal financial matters that go on within companies. In order to make informed decisions, they must rely on the due diligence of corporate insiders. The Sarbanes-Oxley Act offers protection by interjecting ethical behavior and integrity in the public company management and auditing process. Signed into law by President Bush on July 30, 2002, it offers the most massive across the board changes to securities law since the 1930s (Weinberg, 2003). Such legislation was established to oversee auditors and put severe restrictions on questionable financial and auditing reporting and processes.
Discuss the obligation of corporate...
The principal problem at the middle management and employee level at MF Global was that the task of measuring the capital at risk from proprietary trading was not performed by executive management and that those risks were ignored after being brought to their attention (Protess & Ahmed,, 2012). Meanwhile, traders typically do not conduct thorough risk assessment of their trades and of the capital required to fund investment strategies because
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Removal of Suspended Substances in Domestic Wastewater by Coagulation Using Slow Sand Filtration and Roughing Filtration Water to be supplied for public use must be potable i.e., satisfactory for drinking purposes from the standpoint of its chemical, physical and biological characteristics. Drinking water should, preferably, be obtained from a source free from pollution. The raw water normally available from surface water sources is, however, not directly suitable for drinking purposes. The
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