Management responsibility
APA STYLE REQUIRED AND CITE ONE REFERENCE.
What is the responsibility of management and the auditor with respect to the internal controls of a client?
Groupon disclosed a “material weakness” in its internal controls saying that it had failed to set aside enough money to cover customer refunds. Do you believe the company engaged in fraud with respect to customer refunds? Why or why not?
Groupon blamed EY for the admission of the internal control failure to spot the material weakness. Do you agree that EY should have spotted the internal control weakness earlier and taken appropriate action? Include in your response the role that risk assessment should have played in EY’s actions.
The responsibilities are many but we can just narrow down to some responsibilities. To start with the management becomes responsible for making sure that all internal control systems are in in place. This arises due to the concern that the best business practices are established and the followed in every area as well as maintaining compliance. This goes hand in hand with identifying fraud risks as the management mitigates them as it leads to effective governance of Groupon. When all this is keenly considered or…………………………..
APA
734 words
734 words
