Fraud Consideration by Auditors John Beasley Is Interviewing with Public

question 52

Essay

Fraud consideration by auditors John Beasley is interviewing with public audit firms to become an auditor.John does not believe that fraud is a "big deal" in client organizations and argues that most individuals in management of companies are "honest people." He believes that auditors are becoming too cynical. Describe your response to John's attitude and discuss the major types of fraud that occur in companies.

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Definitions:

Situational Influences

External factors present in an individual's environment that impact behavior, decisions, and perceptions.

Situational Factors

Refers to external influences that affect an individual's behavior, decision-making, and ability to perform in various situations.

Actor

A person who performs in plays, movies, or television shows.

Knowledge

Information, understanding, or skill that one gets from experience or education.