The problem of management override is a significant issue in auditing today. In spite of the current emphasis on internal controls created by, among other forces, the Sarbanes-Oxley Act of 2002, there are inadequate discussions concerning auditors' problems in detecting management override. In this article, "management override" is intended as a pejorative term -- meaning an inappropriate or fraudulent adjustment. Statement on Auditing Standards 99 is the best literature on the issue of what tools the auditor possesses to find management fraud. Nonetheless, it does not lay out a clear path of what to do and how to do it. As a result of the author's experience, the following is suggested: 1. analytic review, 2. round numbers, 3. unlikely business relationships, 4. undisclosed side agreements, 5. big final-month results, 6. "deep throats," 7. differences in locations, and 8. journal entries. When it comes to management override, for every offense there is an appropriate defense.
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