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Article: Exposing Financial Statement Fraud.
- Article from:
- Internal Auditor
- Article date:
- December 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 Institute of Internal Auditors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The forms and faces of financial statement fraud are many, various--and often disastrous.
TEVE MCMILLAN, GENERAL Auditor for a medium-sized financial services holding company, had recently joined the organization after an eight-year career in public accounting. He and Karen Johnson, one of the company's audit managers, were discussing a meeting they had had with the CEO earlier that day.
The CEO had begun the meeting by acknowledging that most internal auditors are not usually concerned about fraudulent financial reporting. "However, I'm taking this issue seriously," he continued. "I want to be sure that this company cannot be accused of managing ...