Explain the importance of ‘tone at the top’ or ‘control environment’ in reducing the risk of fraud in companies.

1. Explain the importance of ‘tone at the top’ or ‘control environment’ in reducing the risk of fraud in companies.

2. Why have external auditors not been entirely successful in reducing managers’ actions in ‘making the numbers’?

3. In your opinion, what could be done to avoid auditor failures?

4. Define the terms ‘earnings management’ and ‘quality of earnings’ with respect to the external auditor’s responsibilities. Discuss the auditors’ responsibilities and how to draw a line between ‘earnings management’ and fraud.

 

Solution:

Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Formatting
Title Page
Citation
Place an Order

Calculate your paper price
Pages (550 words)
Approximate price: -