- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Abita Springs finance director under criminal investigation
Posted on 2/2/24 at 3:11 pm to OceanMan
Posted on 2/2/24 at 3:11 pm to OceanMan
Anaytical reviews, such as year to year comparisons? Ratio analysis?
If the charges are spread across numerous GL accounts, a $5k or $10k variance from year to year is not going to pop in an analytical review.
Auditors' Responsibility Paragraph
Our objectives are to obtain reasonable assurance about whether the financial statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Now, on their internal control procedures, who is reviewing and approving credit card statements? Could be an issue there.
If the charges are spread across numerous GL accounts, a $5k or $10k variance from year to year is not going to pop in an analytical review.
Auditors' Responsibility Paragraph
Our objectives are to obtain reasonable assurance about whether the financial statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Now, on their internal control procedures, who is reviewing and approving credit card statements? Could be an issue there.
This post was edited on 2/2/24 at 3:14 pm
2
Posted on 2/2/24 at 3:34 pm to Nappy
quote:
Now, on their internal control procedures, who is reviewing and approving credit card statements? Could be an issue there.
This is what should be blamed more than the auditor for sure. Who is reviewing and reconciling credit card statements?
Posted on 2/2/24 at 3:51 pm to Smoke7024
If the auditors didn't catch her who did?
Posted on 2/2/24 at 8:19 pm to TigerintheNO
quote:
If the auditors didn't catch her who did?
Article says the City caught it, which is how things like this should be caught.
quote:
Abita Springs eventually caught the charges. In September of 2023, the town fired Ludlow, accusing her of gross misconduct and dishonesty.
Posted on 2/3/24 at 11:08 am to Nappy
quote:
Anaytical reviews, such as year to year comparisons? Ratio analysis?
A mere look at the credit card statements of the person in charge of disbursements would be an analytical procedure. Or at least a response to fraud risk, which would include employee interviews.
Abita is a tiny town. This woman spent a lot of money. This wasn’t even a sophisticated fraud scheme.
quote:
therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.
This is a town, so the audit was conducted in accordance with GAGAS, and as mentioned previously, also subject to statewide AUPs.
I understand the concept of reasonable assurance quite well, I’m questioning whether they obtained the evidence to provide it.
Page 3 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News