Internal Accountant's Report to Management
Jennifer Hunt
University of Phoenix
Forensic Accounting/ACC 556
October 5, 2015
Kimberly Warren
Internal Accountant's Report to Management
Financial Accounting provides an in-depth understanding of an organization’s transactions, monetary status, and operations. Currently, McMillan Co. is preparing to make a bid in relation to a sizeable government contract, but before doing so it must undergo a full financial status review. This document will provide a concise description pertaining to the importance of performing a full financial status review that includes subjects, such as the effects of occupational fraud and abuse, governmental oversight, potential corruption schemes, and recommendations for discovery. Without a working financial knowledge of one’s business, the company cannot possibly hope to make others believe in its capabilities.
The Effect Of Occupational Fraud And Abuse On The Company
Occupational Fraud is most assuredly the most common form of fraud within any small or large organization and most often found in smaller businesses because of a lack of auditing (Wells, 2004). Employee abuse consists of the use of employer funds and assets for personal use, which happens quite frequently. However, fraud and abuse activities tend to take on a much larger picture when viewed as a total. For instance, some of the primary fraudulent or abuse activities derive from acts that pertain to embezzlement, corruption, and both internal and external factors. Each form of fraud or abuse causes a business to lose profits and its reputation. Primarily the loss of funds causes the loss of reputation, because it is the inability to repay debts, pay employees, and make tax payments in a timely manner or even at all that destroys a company’s worth and standing. Others review a business’s financial statements to determine the amount of profit it is generating and will continue to generate well into the...