Anatalia Jessie A. Munoz Reflection Essay The video about False Assurance was chaotic and unfolds the true concept of intentional fraud. The first scenario presents two options: the replacement of central parts of existing infrastructure involving a significant outlay of money, or the upgrading of the existing infrastructure without outsourcing, which entails more manageable costs. In the first option, the replacement of central infrastructure parts requires a substantial financial investment. While this may seem like a straightforward decision from a business perspective, Will this investment truly benefit the organization, or is there a risk of false assurance, where the promised returns fail to materialize? Moreover, the Auditors must ensure that proper internal controls are in place to prevent fraud or mismanagement of funds associated with this large-scale expenditure. On the other hand, the second option of upgrading existing infrastructure without outsourcing presents its own set of challenges. While the costs may be more manageable, the company must navigate the delicate balance between cost-effectiveness and maintaining the integrity of internal controls. Upgrading without outsourcing may require closer scrutiny of the existing systems, potentially uncovering vulnerabilities or areas susceptible to fraud. Delays in the implementation of the S1D system not only impact investor confidence but also raise concerns about potential fraud and impairment of profits. The auditors must tread carefully to ensure that financial reporting remains accurate and transparent, particularly in light of lowered profit projections and potential breaches of bank covenants. Furthermore, Sarah grapples with the intricacies of family relations within Premintel, where ownership structures are unclear, and financial disclosures are restricted. These relationships highlight the significance of remaining objective and independent as an auditor, especially in the face of familial ties and potential conflicts of interest. The threat of fraud looms large as auditors unearth questionable activity, including claims of bribery and the involvement of bogus suppliers coordinated by Tom, the Director of Global Sales. As the situation grows, senior executives, including CEO D-merton, are facing legal inquiry. These disclosures highlight the importance of strong internal controls and attentive oversight to prevent fraudulent actions from spreading throughout the firm. This video broaden my ideas about the connection between auditors and accountants. The video’s journey serves as a poignant reminder of the ethical challenges inherent in decisionmaking processes, where the pursuit of financial gains must be tempered by a commitment to integrity, transparency, and ethical conduct. Only by navigating these complexities with diligence and integrity can organizations mitigate the risks of false assurance and uphold the trust of stakeholder.
