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Discussion

The Sarbanes Oxley Act of 2002 (SOX) served to focus auditors’ attention, and users’ and managements’ as well, on internal control. ;Was SOX right in identifying internal control as the solution to management fraud? ;Do you believe the added requirements to report separately on internal control are necessary? ;Do you think they have worked? ;And will they work in the future? ;

In Chapter 8 Schilit discusses ; four (4) techniques to shift current income ;to a later period . ;One of ; these techniques ;is “creating reserves in conjunction with an acquisition and releasing them into income in a later period”. ; Why would this be done? How can an auditor detect this scheme? ;Is it illegal?

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Financial Shenanigans – Chapter 8.pdf ;

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