Section1: The use of excel in trend and fraud analysis
Trendanalysis involves the use of the past data to project the futureoutcome. Microsoft Excel allows one to create the chart of theprevious data and add a trend line that gives an overview of how thefuture results might appear (Cluster Seven, 2013). This isaccomplished by first entering the data into the Excel spreadsheetand selecting the data to create a line chart. A trend line isobtained by clicking on the chart and selecting the option trend linefrom the chart menu. Data series that one wants to acquire the trendline for are selected and trend line features accessed.
Infraud analysis, Excel helps in the detection of mismatch patterns ofdata or entries. The data is entered in Excel spreadsheet and a FraudBuster engaged. This system uses a set of rules to determine if fraudor incorrect entry of data has been made. For example, if numeral 1is expected to occur in only 5 % as the first digit, Excel raises ared flag to indicate an error or a fraudulent transaction (Rose,2003).
Thestudent’s definition of the term audit is correct, but it onlytakes account of the external audit. However, the subsequent sectionsconsider the two types of audit, namely, external and internal audit.Although the posting acknowledges that fact that financial auditinghas a wide scope, one cannot describe the roles of financial auditwithout mention the determination of the truthfulness andtruthfulness of the financial statements. In addition, the statementthat the audit cannot prevent the occurrence of fraud is true becauseaudit involves the analysis of the financial transactions that havealready occurred.
Thestudent seems to compare accounting for a not-for-profit organizationwith accounting for health care organizations, but the questionrequires the comparison of accounting health care facilities,especially the not-for-profit health care organizations. The studentshould have focused on issues, such as the use of accrual basis innot-for-profit firms, capitalization of assets, and reporting ofexpenses in functional classification.
ClusterSeven (2013). Fraud detection. ClusterSeven.Retrieved January 18, 2014, fromhttp://www.clusterseven.com/excel-spreadsheet-fraud/
Rose,M. (2003). TurnExcel into a financial sleuth.Washington, DC: American Institute of CPAs.