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Farrell, Barbara R. and Joseph R. Franco. 1999. "The Role of the Auditor in the Prevention and Detection of Business Fraud: SAS No. 82." Available: http://wcr.sonoma.edu

The cost of fraud to business in 1996 was six percent of annual revenue. Everyone is victimized by high product costs and lower corporate profits. When fraud is detected within a business, there is usually shock and disbelief that a trusted employee who resembles the "person next door" could have done what they are accused of. In light of the cost and characteristics of offenders, it is important to develop strategies to prevent or detect business fraud. In light of heightened public expectations and new expectations for auditors following the savings and loans scandals, this paper asks what the responsibilities are of external auditors, internal auditors, and management (Farrell, & Franco. 1999. P.11).

Savitz, Eric. (2012). HP Alleges Fraud In Autonomy Deal; Takes $8.8B Charge; Shrs At 10-Year Low. Forbes. http://www.forbes.com

Hewlett-Packard this morning asserted that there were substantial instances of financial fraud in connection with its acquisition of the software company Autonomy in 2011 for $11.1 billion.

Specifically, HP today disclosed $8.8 billion in non-cash charges “linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy … that occurred prior to HP’s acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term.” In effect, the company is writing down close to 90% of the value of the transaction.

HP launched its internal investigation into these issues after a senior member of Autonomy’s leadership team came forward, following the departure of Autonomy founder Mike Lynch, alleging that there had been a series of questionable accounting and business practices at Autonomy...