| dc.description.abstract | In recent years, fraud cases have been spread frequently worldwide, and personnel who depleted the assets of company have been reported in newspapers and media from time to time. Many of them involved employee fraud and financial statement fraud, leading to turmoil in the financial market, damage to investors’ rights and insecurity of employees’ rights to work. The external certified public accountants who audited the financial statements were also subject to suspension of license or fines. However, after the case was sent to the court for trial, the prosecutors and relevant forensic experts confirmed the crimes committed by the criminal perpetrators, and then prosecuted them and brought them to justice. If the fraud case occurs, the company’s internal control owners, certified public accountants and external supervision agencies could maintain a high degree of professional skepticism and use the concept of forensic accounting. With that said, whether social cost would be decreased as a result, it is worthy of our in-depth discussion?
The internal control system is an continuing management and control mechanism in the development of an enterprise. Among the five major components, the control environment is the basis for all activities, especially
the ethics of management, which is regarded as the most essential behavior. When the internal control system is operating well, it can prevent interested parties from engaging in illegal activities. If combined with the whistleblower mechanism and the supervision of external independent directors, fraud cases should be dismissed, but many fraud cases overrode internal control and their illegal acts were not found or investigated with ease, so timely use of forensic accounting concepts, frauds can be detected and treated early. My essay takes an OTC company as an example to discuss and input my ideas on the selected company.
Key Words: Forensic accounting, Fraud, Internal control | en_US |