Question 1.

  • Create  a scenario where the external auditors detect that there is fraud.  Discuss the auditors’ responsibilities for assessing fraud risk. What  are the procedures used to detect material misstatements due to fraud?  
  • Discuss recommendations to management for reducing fraud. 

Question 2

  • Watch  the three NBC Learn videos on recent data breaches at three major  corporations. Analyze the effects of the SEC‘s data breach disclosure  requirement on financial reporting, based on the current language of the  requirement. Recommend a change to the disclosure requirements to  strengthen public company disclosures of cyberattacks. Provide support  for your rationale.
  • Examine  the impact of cyberattacks on potential investors in a public company.  As an auditor, provide your recommendations for including the potential  of a cyberattack in the 10-K, as opposed to an actual attack. Provide  support for your recommendation.
  • The 3 videos to search 1.  Equifax: Personal Data for Millions of Americans Potentially Exposed 
  • 2.  Facebook Reveals Security Breach Affects Up to 50 Million Accounts 
  • 3. Equifax, Yahoo CEOs Face Questions on Capitol Hill 


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