Proposal for the analytical report Essay Example | Topics and Well Written Essays - 1000 words

Proposal for the analytical report - Essay ExampleThe research intends to dish the question, is there a significant relationship between internal date practices and reported accounting frauds in organizations? It proposes to test the null hypothesis that there is no significant difference between effectiveness of internal control mechanisms and incidence of accounting fraud in organizations. Introduction Fraud defines a criminal antic that targets a financial gain. While a final independent audit may identify accounting fraud for legal actions against suspected personnel, this avenue does non recover lost finances because criminal acts attracts no remedy to the victim. The best solution for safeguarding an organizations finances is therefore through establishment of squiffy internal control avenues that can detect and prevent manageable frauds. This research seeks to establish a basis ensuring implementation of most appropriate internal control measures. The problem Fraud is a major threat to the going concern of an organization, both small scale and large scale. This identifies fraud and internal control measures towards despotic fraud as essential elements to organizational management. A number of internal control measures exist for detecting and preventing fraud such as application of checks and balances on offices that deals in finance based issues like planning, authorizing, and accounting offices. Frequent reconciliation of accounts, restricting access to authorized personnel, strong policies and discouraging conspiracy argon opposite identified control avenues (Hogan, 2011). Brainstorming to evaluate possible fraud or fraud indicators and monitoring compliance to codes of conducts as set by organizations also facilitates contracting and prevention of fraud (Aicpa, 2005). Such measures are as yet hard to understand if fraud is deeply rooted in an organization, such as in muckle where an organizations management applies fraud in extraneous ventu res. This therefore identifies far-reaching effects of fraud that extends to industrys performance and consumers economic factors. Fraud is however both a criminal and immoral act that should not exist in professional practice. Effective measures are therefore necessary to ensure that possible threats of fraud are identified and eliminated. Findings from this research will be instrumental to professional personnel that is charged with the responsibility of safeguarding an organizations finances. Such are accounts officers and the chief accounting officer, internal auditors, organizations managements and external auditors. The accounts officers will find the research results helpful in identifying potential threats to fraud for necessary actions such as inform to senior management officers. The chief accounting officers is however a chief beneficiary of the research findings that will help in controlling the vice in his docket. The management whose role involves disciplining employe es and overly supervising an organizational activities and processes need to be informed about fraud control because they are the organizations custodians to external stakeholders. Internal and external auditors will however find the results helpful in identifying inconsistencies in statements and in recommending appropriate measures