Should the company have told Jason and Maria the results of the high-level audit?Why or why not?
Whether or not Jason and Maria should have been told the results of the high-level audit is also a matter of opinion. The investigative team is apparently trying to keep its agreement to maintain silence by telling as few people as possible what really happened. On the other hand, Jason and Maria were the ones who first recognized the problems; it seems only right that they be told about the outcome.Many lessons may be drawn from this story.1.
Auditors should view the condition of an organization’s control environment as an important indicator of potential internal control problems.2.
Fraud is more easily perpetrated and concealed when many perpetrators are involved, and especially when management is involved.3.
Purchasing and payroll are two areas that are particularly vulnerable to fraud.4.
Determining whether fraud has actually occurred is sometimes quite difficult,and proving that it has occurred is even more difficult.5.
Frauds do occur, so auditors must always be alert to the possibility of fraud.6.
Auditors should not accept management’s explanations for questionable transactions at face value, but should do additional investigative work to corroborate such explanation
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