e internal control
Q: John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash,…
A: Introduction: Documents, according to John and most other fraud investigators, are preferable to…
Q: A purchasing agent for a large hardware retailer has sole discretion in selecting vendors for the…
A: Ethics: Ethics can be defined as a conduct adopted by an individual in making the selection…
Q: In a recent financial fraud case, city employees in Brooklyn, New York, accessed electronic…
A: Digital Fraud: Digital fraud is the fraud which uses interne partly or completely to indulge in any…
Q: Most employees that choose to commit fraud against their employers feel justified in doing so. For…
A: Internal control is an important part of every organization. It helps in maintaining the efficiency…
Q: In a financial fraud case, city employees in Brooklyn, New York, accessed digital databases to…
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Q: A multimediacourse graduate used design software to create paychecks that lookedidentical to those…
A: The question is related to computer instruction fraud. It inculdes tampering with the software that…
Q: a. Identify the type of fraud that took place. (e.g. misappropriation of assets o fraudulent…
A: a. The type of fraud that took place, in this case, is Misappropriation of assets. In this Case,…
Q: 8.During an audit of a retail company, Lily, newly hired internal auditor, found a scheme in which…
A: solution in the given case there was a fraud scheme in which the warehouse manager and a purchasing…
Q: Post, CPA, accepted an engagement to audit the financial statements of General Co., a new client.…
A: Answer 1: If Post finds that, owing to the presence of fraud, the financial statements of General…
Q: Jane Ellerby and Sam Callison are discussing the recent fraud that occurred at LowRental Leasing,…
A: Fraudulent financial reporting: Intentional misrepresentation of financial statements to mislead the…
Q: You are asked to be interviewed by a student newspaper regarding the nature of accounting fraud. The…
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Q: A purchasing agent for a home improvement center is also part owner in a wholesale lumber company.…
A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…
Q: oufian, a senior account executive is spending more money than he can afford. He is the authorized…
A: In the given situation, there can be seen complete lack of internal control.
Q: Which of the following internal control policies, when absent, would increase the opportunity for…
A: Note: As per the Bartleby guidelines we are required to solve a maximum of one question. Please post…
Q: WorldCom committed the largest fraud in U.S. history. What was the primary method WorldCom’s…
A: Fraud: It is an intentional misappropriation of the assets or the financial records of an…
Q: Soufian, a senior account executive is spending more money than he can afford. He is the authorized…
A: An organization needs certain manual and automated steps in the smooth functioning of the business…
Q: Many authorities believe that the employer does not prosecute 90 percent of all computer fraud acts.…
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Q: Match each situation with the fraud triangle factor (opportunity, financial pressure, or…
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: When in an examination of a retail firm, Lily, a recently recruited internal auditor, discovered a…
A: in the given case there was a fraud scheme in which the warehouse manager and a purchasing staff…
Q: The Perfect Crime? Consider the following story of an actual embezzlement.This was the ingenious…
A: Embezzlement: Embezzlement is a type of fraud, which is classified under employee fraud. It…
Q: Enrique accesses Finance Bank's computer system without authority to obtain protected financial…
A: Physical assault or another form of conduct that can inflict serious psychological injury are common…
Q: In the Why It Matters feature “Examples of Theft and FinancialReporting Frauds” at the beginning of…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: A purchasing agent for a home improvement center is also part owner in a wholesale lumber company.…
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Q: David H. Brooks, a university graduate with an accounting degree and the former CEO of…
A: Inventory refers to the goods and raw material that business holds for sale and production purposes…
Q: Black is a Certified Fraud Examiner for the ABC Company. Green, an employee in the accounting…
A: There are different ways of charging the employees for doing crimes as per crime done if they are…
Q: This corporate con stated that she stole from the company because she believed it was "okay" to take…
A: The fraud triangle represents the three basic reasons which influence the person to commit the…
Q: There are two common causes of business and accounting fraud: • A failure of individual character •…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: After reading the paragraphs, list the journal entries you think Rite-Aid would have used to do what…
A: Window dressing means the accounts are presented to provide a more favorable picture of the…
Q: Assume that you are interviewed by a student newspaper regarding the nature of accounting fraud. The…
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Q: What are the most common approaches that perpetrators use to commit fraudulent financial reporting?…
A: A fraud in an audit is an activity performed with the intent of deceiving the users of the financial…
Q: Jim Block, CFE, is investigating Randy Smith for his role in a potential kickback scheme. Gathering…
A: Search warrants are required when the investigator knows the location of an important piece of…
Q: Research consistently shows that there are three elements present when most frauds occur. List these…
A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: You are asked to be interviewed by a student newspaper regarding the nature of accounting fraud. The…
A: It has generally been seen that the misappropriation of assets is done by workers of the…
Q: Each of the following scenarios is based on facts in actual fraud. Categorize each scenario as…
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Q: The following scenarios are taken from actual fraud cases. For each scenario, categorize as…
A: Following will be the categorization of the given situation
Q: Select the correct answer(s) for the following multiple-choice questions. Note that there may be…
A: Fraud is an intentional mistake to gain financial advantage. Input fraud is done by altering…
Q: Upon hearing that you are enrolled in a fraud class, a manager of a local business asks, “I don’t…
A: Answer:-Irrespective of the quality and capability of an auditor it is extremely difficult to detect…
Q: Sarah is the payroll assistant at Samtech Ltd with over four years of experience. One Sunday…
A: Fraud Triangle has three components, they are: Opportunity Pressure, and Rationalization The fraud…
Q: A former chairman, CFO, and controller of Donnkenny, Inc., an apparel company that makes sportswear…
A: a) The Fraud management could revoke the complete control procedure to avoid the actual errors, the…
Q: While assistant treasurer of Travco Corporation, Frank Mitchell caused two checks, each payable to a…
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Q: Paragon Tech Company, a communications equipment manufacturer, recently fell victim to a fraud…
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Q: A profile of fraud perpetrators prepared by the Association of Certified Fraud Examiners revealed…
A: Fraud is a malicious act committed by people to fulfill their personal benefits. In case of an…
Q: Read the facts of the case in Problem 2-26 to become familiar withthe fraud involving Koss…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Fraud refers to any intentional act to achieve gain, usually monetary. Committing a fraud is…
A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…
Rohini works as an accountant with PQR Ltd. She embezzled $20,000 from the company bank account. She was caught in the annual audit of the company. She justified her action saying that her employer has not given any pay rise, so she had to take $20,000 from the account.
Explain in your own words the internal control that may have failed in the above situation. Also explain which element of the fraud triangle Rohini is referring to justify her action.
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Solved in 3 steps
- Black is a Certified Fraud Examiner for the ABC Company. Green, an employee in the accounting department, steals $40,000 worth of merchandise from the store’s warehoused. If Green’s cas is eventually referred to the police by Black, they will probably charge Green with: A. Breach of contract. B. Breach of fiduciary duty. C. Embezzlement. D. Larceny.Consider the scenario in which Brooke Miles, an accounts payable clerk for West Coast Design Inc., misappropriated $48,350 by paying false bills for commodities that were never delivered to the company. It was the clerk's responsibility to open accounts in the names of the phony corporations and pay the cheques at a nearby bank. Describe a fraud-prevention or detection method that may have been used to avoid or identify the scam.During an internal investigation, Black, a Certified Fraud Examiner, interviewed Green, a fraud suspect. Although Green wanted to leave in the middle of the interview, Black blocked the exit and prevented him from leaving. Green subsequently confessed to committing fraud. If, under these facts, Green files a lawsuit for false imprisonment against Black, Black will likely: A. Win the case because the qualified business privilege protects investigators conducting internal investigations. B. Win the case because Green confessed to the fraud. C. Lose the case if a trier of fact concludes that he restrained Green without consent or legal justification. D. Lose the cans because Green did not leave the interview.
- 5. What does Tina mean in her statement to the Clare County Review "the effects of an embezzlement are far reaching and detrimental for everyone"? Who were all the stakeholders that were all affected in this case? How was each of them harmed? 6. Jenifer was caught embezzling via the payroll system, how else might she have been stealing from the company that was never proven? 7. Why do you think Jenifer embezzled the money? 8. Do you think her sentencing is too lenient, too harsh, or is appropriate? Why? 9. What would you do if your friend and employee was stealing from a company that you owned?Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were neverreceived. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure thatwould have prevented or detected the fraud.Upon hearing that you are enrolled in a fraud class, a manager of a local business asks, “I don’t understand what is happening with all these major scandals such as the Bernie Madoff scandal, the Goldman Sachs accusations, and the Enron fraud. There are billions of dollars being stolen and manipulated. How can any good auditornot notice when billions of dollars are missing?” How would you respond?
- CASE: You are a fraud expert and have been asked to investigate possible wrongdoing at a local nonprofit organization. You suspect that one of the workers, Stacey, has been embezzling money. After securing enough evidence to be very confident of Stacey's guilt, you speak with the president of the organization, Jamie. Jamie assures you that Stacey could be doing nothing wrong, that she has known Stacey for years, and Stacey is a good person. Further, she indicates that because of her relationship with Stacey, even if something were going wrong, no action would be taken with respect to the potential fraud. QUESTIONS: 1)How do you respond to Jamie? How do you explain to her what is at stake? 2) What monitoring and control systems should have been in place at Jamie's organization to prevent such a behavior? Explain. 3)Would you recommend an ethics audit to this company? Why?Assume that brooke miles accounts payable clerk for west coast design inc.stole $48,350 by paying fictitious companies and cashed the checks at a local banks. Describe a control procedure that would have prevented or detected the fraud?The following paragraphs describe fraudulent accounting committed by the company Rite-Aid in 1999. After reading the paragraphs, list the journal entries you think Rite-Aid would have used to do what is described here. You will have to make an educated guess as to what journal entries the company would use to cover up the fraud. Rite Aid failed to record an accrued expense for stock appreciation rights it had granted to employees, in a program that gave the recipients the right to receive cash or stock in amounts tied to increases in the market price of Rite Aid stock. Rite Aid should have accrued an expense of $22 million in FY 1998 and $33 million in FY 1999 for these obligations.
- What are the most common approaches that perpetrators use to commit fraudulent financial reporting? You are asked to be interviewed by a student newspaper regarding the nature of accounting fraud. The reporter says, “As I understand it, asset misappropriations are more likely to be found are more likely to be found in small organizations, but not in larger organizations. On the other hand, fraudulent financial reporting is more likely to be found in larger organizations.” How would you respond to the reporter’s observation? The fraud triangle identifies incentives, opportunities, and rationalizations as the three elements associated with most frauds. Describe how each of these elements is necessary for fraud to occur.Jim Block, CFE, is investigating Randy Smith for his role in a potential kickback scheme. Gathering evidence about Randy's financial activity has been difficult. While on a stakeout at Randy's home, Jim sees Randy's wife take out the garbage and place it on the curb. Jim takes the trash bag, sorts through its contents, and discovers multiple bank statements that provide details about some of Randy's illicit financial transactions. Is jim's acquirement of the bank statements legal even though there was no search warrant? Fully explain!Mark Buffalo works for a mid-size accounting firm in Boston. One day he overhears a colleague talking to a friend on his cellphone. Mark gasps when he realizes the colleague is sharing one of their client's confidential information, likely as an insider trading tip. As a member of the AICPA, Mark is required to report this discreditable act to the Boston chapter of the AICPA. Select one: True False