The Public Company Accounting Oversight Board makes clear that fraud detection is a responsibility of auditors and provides guidance on how to identify it, but "there are certain types of sophisticated fraud that may be difficult to detect without employing specialized forensic audit expertise," writes Drew Bernstein of Marcum Bernstein & Pinchuk. He suggests that auditors attend "fraud school" to learn subjects such as environments that facilitate fraud and techniques that gauge fraud risk.
Former Disney financial analyst Sandra Kuba has submitted whistleblower claims to the Securities and Exchange Commission that allege years of revenue inflation by exploiting flaws in accounting software. Disney says the claims "have been thoroughly reviewed by the company and found to be utterly without merit."
Because tax practitioners often create or audit the income tax provision and related disclosures, tax students and professionals should understand how they are constructed.
The Business Roundtable, made up of CEOs from some of the biggest corporations, has adopted a statement that says maximizing shareholder value should not be the only priority of businesses. The statement says companies should also consider the well-being of employees, suppliers and the environment. For information on enhanced business reporting, visit the AICPA Financial Reporting Center page devoted to the topic.