Guess a term
An examination of financial reports or other reports by the independent person or organization where the opinion is expressed based on the fact of their review.
Audit
Internal audit
An independent, objective activity helping an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Embezzlement - a person
An embezzler
Complex financial transactions are conducted to make it difficult for authorities to trace the money. This includes moving funds between accounts or buying and selling assets.
Money laundering
Finally, we've brought in an external agency to check for ___________________ between debit and credit.
discrepancies
Opinion that independent external auditors give when they conclude that the client’s financial statements contain no material misstatement.
An unqualified opinion
Compliance audit
An independent evaluation to ensure that an organization is following external laws, rules, and regulations or internal guidelines, such as corporate bylaws, controls, and policies and procedures.
Defalcation - the verb
Defalcate
An employee sets up a bank account with a name similar to the company. Then they cash customer checks or divert electronic payments into their account instead of the company’s.
Embezzlement
Pseudo-information may _____________ organizational reputation, relationships with stakeholders, and hurt an organization’s bottom line.
hamper
A review of a company to check for evidence of fraud or misconduct to present in a court of law.
A forensic audit
Adverse opinion
An opinion that a company's financial statements don't follow the rules or don't show the company's real financial situation
To misuse - the noun
Misuse
The non-payment of taxes by means of not reporting all taxable income, or by taking unallowed deductions.
Tax evasion
New technology, policies and practices can be used to ______________ risks of money laundering.
mitigate
A statement made by an auditor that no opinion can be given regarding the financial statements of a client.
A disclaimer of opinion
Material misstatement
A significant error, omission, or misrepresentation in a company’s financial statements
Fraud - the adjective
Fraudulent
You spend money on technology that’s much more advanced than you really need
Squandering
We will conduct our business in ______________ with these requirements.
compliance
Spending resources lavishly and wastefully
Squandering / wastefulness
Embezzlement
Intentional and unethical use of owners’ funds for personal gain.
Fraud - the verb
To defraud
The CEO of a nonprofit organization uses money meant for charity to pay for a luxurious vacation for himself.
Misappropriation
In integrated audits, auditors often ___________ on internal control to reduce their substantive testing of financial statement accounts and disclosures.
rely