Homework: Accounting and Audit Enforcement
Using the Internet, or the Securities and Exchange Commission's Website, perform a search on several U.S. health care publicly-traded companies and choose a health care organization that has been accused of committing health care fraud.
Write a 5 to 6 pages paper in which you:
1) Evaluate the level of SOX regulations that applies to for-profit and not-for-profit health care organizations, indicating whether or not mandating SOX requirements for non-profits might reduce fraud and increase corporate governance. Provide support for your rationale.
2) Determine whether SOX has been effective in regulating ethical behavior of for-profit health care organizations. Defend your position.
3) Review the audit report issued by the external auditing firm from the company's Website for the year it was accused of fraud. Then, determine whether the external auditors were negligent in preparing the audit report for the company. Formulate an opinion regarding which Internal Control was deficient or what GAAP was violated. Defend your position.
4) Determine what provision(s) of SOX was / were violated in the health care fraud case in question. Indicate whether or not SOX adequately provides sanctions to deter the behavior or if changes are needed to the regulations to remedy the issue(s) and thus ensure compliance.
5) Based on the fraudulent activity that occurred, recommend two (2) improvements to the internal control environment to reduce those occurrences. Provide detailed recommendations.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
The specific course learning outcomes associated with this homework are:
1) Evaluate internal controls within an organization and create a risk assessment.
2) Analyze ethical theories to evaluate a decision-making process to determine compliance with professional codes of ethics.
3) Evaluate the health of organizations to assess the level of risk in an audit engagement.
4) Evaluate financial data for potential fraud and prepare an audit approach for detecting fraud.
5) Assess the risk of financial misstatement in an IT-based environment.
6) Use technology and information resources to research issues in accounting management.
7) Write clearly and concisely about accounting management using proper writing mechanics.