What relationship is there between the size of a fraud and the perpetrator's position in the company? Usually the large frauds are from somebody who feels under appreciated and thinks that he/she deserves more than what they are getting. In light of the most common initial detection method for fraud, what does the Sarbanes-Oxley Act (SarbOx or Sox) require for public companies? With referring to Hotlines where anonymous people can give tips, the Sarbanes-Oxley Act requires audit committees of publicly traded companies to establish procedures for 'the confidential, anonymous submission by employees of the issuer.' What data supports the effectiveness of anonymous hotlines? Median loss data based on the effectiveness of anonymous hotlines. What percent of revenue is estimated to be lost because of fraud? 6% Which is more frequent or severe: asset misappropriation or financial statement fraud? Asset misappropriation is by far the most severer because it has to do with check forgeries and theft of money. Budgets and exception reports prepared and reviewed.

Has a hotline that you can report anonymous tips on fraud or impropriety within the company, also with sexual abuse and other problems that might occur. Having auditors come in and review the books. Monitoring- External and internal surveillance cameras.

4.Segregation of duties- ACRO(Authorization, Record-keeping, Custody, and Operation), don't have one individual responsible for authorizing, record keeping or custody, can be circumvented if there is collusion among employees, very hard to achieve poor segregation of duties in small businesses only a few employees, have the owner/manager actively involved in the accounting/reporting process. Performance reviews- preparing budgets and forecasts and properly investigating variances, Information processing controls- Passwords control over creation of new vendor files in a system, Physical controls- Fireproof vault, offsite backup, Dual signatures on checks over a certain amount, don't leave the key in the petty cash box, hide blank checks, mechanical or computerized sales registers. 4.Control Activities- Broken down into small components. The Accounting Information & Communication System-Having mistakes or fraud is limited in an AIS. Risk Assessment- Anytime there is an important change in the company there needs to be a reevaluation of internal controls.

1.The Control Environment-This section includes the integrity and ethical values of the company, commitment to competence, board of directors and audit committee, management philosophy & operating style, also includes an organizational structure which represents the acronym ARC, which is Authorization of transactions, Recordkeeping for transactions, Custody of transactions.

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