A 2010 study on fraudulent financial reporting by COSO notes the many ways in which long-lived assets
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Fictitious assets on the books (WorldCom)
Improper and incomplete depreciation (Waste Management)
Failure to record impairment of assets, especially goodwill (Sun Microsystems)
Expired or worthless assets left on a company's books (Millacron)
Assets overvalued upon acquisition, especially in the purchase of a company (WorldCom) What substantive audit procedures might have detected these frauds?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
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To detect fictitious assets the auditor should have traced recent acquisitions to the fixedasset acc...View the full answer
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Related Book For 
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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