Financial Management and Accounting
Graduate School of Management and Technology
Master's Degrees
Outside Resources
Who We Are
Master of Science in Accounting and Information Technology (MSAT)
Kathryn Klose, CPA, program director for Financial Management and Accounting
Donald Gakenheimer, academic coordinator
Announcements/News
Monitoring Internal Control Systems
In August 2008, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released an exposure draft on monitoring internal control systems in the United States. The draft includes guidance on the fundamentals of monitoring and an in-depth examinations of various types of information for effective internal controls. The Institute of Management Accountants (IMA) and the American Accounting Association (AAA) assisted with the project.
A final version will be available soon at http://www.coso.org/.
Continuous Auditing
The Information Systems Control Journal (Volume I, 2008) discusses the audit industry’s push to use technology in continuous audits that “monitor controls and transactions in real time”(p. 50). The example cited is Siemens’ continuous audit management (CAM) program. The software, provided by Approva, continuously audits for controls such as segregation of duties, changes to the general ledger, and the purchase-to-pay and order-to-cash processes.
The goal of continuous auditing of IT and business controls is to reduce audit costs and increase operating efficiency. Other expected benefits include audits that are deeper and broader, but take less time; provide for more transparency and better communication between auditors and auditees; and where controls are optimized.
Take the Fraud IQ Test
While technology helps in the detection of fraud, accountants and financial managers require an intellectual understanding of what motivates fraud and how to look for signs of dishonesty and deception.
Check your ‘fraud IQ’ by responding to these select questions from a test that recently appeared in the Journal of Accountancy (May 2007).
- Which of the following assets are most often pilfered?
- Cash
- Accounts receivable
- Inventory
- Intellectual property
- __________________is the crediting of one account through the abstraction of money from another account.
- Skimming
- Lapping
- Rigging
- Padding
- Jones is a buyer for Smith. He buys exclusively from Brown despite the fact that other suppliers are better and cheaper. Jones has an undisclosed interest in Brown’s business. This situation would be classified as _____________________.
- Embezzlement
- Larceny
- Conflict of interest
- Bribery
Click here for the answers: Your Fraud IQ.
To take and read the entire Journal of Accountancy article, go to What is Your Fraud IQ? .
