Fraud Examination
5th Edition
ISBN: 9781305079144
Author: W. Steve Albrecht, Chad O. Albrecht, Conan C. Albrecht, Mark F. Zimbelman
Publisher: Cengage Learning
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Question
Chapter 1, Problem 22MCQ
To determine
An option which is not an example of vendor fraud
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Suppose a supplier gives you a price on a contract and then later comes back andclaims that he mistakenly wrote down the wrong price. Do you have the right to suethe supplier over breach of contract? What conditions are important here?
If an employee skims sales from a customer, which of the following will likely occur?
a. The stolen payment if not material, will not be noticed by the organization.
b. The receivable will become past due
C. The customer will not be able to show proof that payment has been made.
O d. The organization is likely to notice the theft of the payment immediately.
The kickback is a form of fraud often associated with purchasing. Most organizations expect their purchasing agents to select the vendor that provides the best products at the lowest price. To influence the purchasing agent in his or her decision, vendors may grant the agent financial favors (cash, presents, football tickets, and so on). This activity can result in orders being placed with vendors that supply inferior products or charge excessive prices. Describe the controls that an organization can employ to deal with kickbacks. Classify each control as preventive, detective, or corrective.
Chapter 1 Solutions
Fraud Examination
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQ
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 1TFCh. 1 - Prob. 2TFCh. 1 - Prob. 3TFCh. 1 - 4. Manufacturing companies with a profit margin of...Ch. 1 - Prob. 5TFCh. 1 - Prob. 6TFCh. 1 - 7. When perpetrators are criminally convicted of...Ch. 1 - Prob. 8TFCh. 1 - 9. A Ponzi scheme is considered to be a type of...Ch. 1 - Prob. 10TFCh. 1 - Prob. 11TFCh. 1 - Prob. 12TFCh. 1 - Prob. 14TFCh. 1 - Prob. 15TFCh. 1 - Prob. 16TFCh. 1 - Prob. 17TFCh. 1 - Prob. 18TFCh. 1 - Prob. 19TFCh. 1 - Prob. 20TFCh. 1 - Prob. 21TFCh. 1 - 22. In vendor fraud, customers don’t pay for goods...Ch. 1 - Prob. 23TFCh. 1 - Prob. 24TFCh. 1 - Prob. 25TFCh. 1 - Prob. 26TFCh. 1 - Prob. 27TFCh. 1 - Prob. 28TFCh. 1 - Prob. 29TFCh. 1 - Prob. 30TFCh. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - Prob. 11MCQCh. 1 - Prob. 13MCQCh. 1 - Prob. 14MCQCh. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Prob. 17MCQCh. 1 - Prob. 18MCQCh. 1 - Prob. 19MCQCh. 1 - Prob. 20MCQCh. 1 - Which of the following is not an example of...Ch. 1 - Prob. 22MCQCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Prob. 3SCCh. 1 - Prob. 4SCCh. 1 - Prob. 5SCCh. 1 - Prob. 6SCCh. 1 - Prob. 7SCCh. 1 - Prob. 8SCCh. 1 - Prob. 9SCCh. 1 - Prob. 10SCCh. 1 - Prob. 11SCCh. 1 - Prob. 13SCCh. 1 - Prob. 14SCCh. 1 - Prob. 15SCCh. 1 - Prob. 16SCCh. 1 - Prob. 1.1CSCh. 1 - Prob. 1.2CSCh. 1 - Prob. 1.3CSCh. 1 - Prob. 2.1CSCh. 1 - Prob. 2.2CSCh. 1 - Prob. 3.1CSCh. 1 - Prob. 3.2CSCh. 1 - Prob. 4.1CSCh. 1 - Prob. 4.2CS
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?arrow_forwardWhich of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing his actions by debiting an expense account, thus overstating expenses. O b. An employee steals inventory and the "shrinkage" is recorded in cost of goods sold. O c. Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold. O d. An employee steals small tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense.arrow_forwardWhich of the following are external threats to revenue security? (select all that apply) A guest who walks out before the bill is presented An employee using voided sales to steal cash A quick-change artist A guest who forgot to payarrow_forward
- Which of the following statements regarding dealers is least accurate? They seek the best price for their customers’ orders. They fill their clients’ orders by trading with them. They connect buyers and sellers who arrive in the market at different points in time. All of the above statements are accurate. None of the above statements is accurate.arrow_forwardWhich of the following statements is not true regarding revenue recognition regarding gift cards? A. "Breakage" refers to the unused portion of gift card balances B. "Breakage" can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. C. It is typical that a portion of gift card sales will go unused by customers.arrow_forwardWhich of the following is not an example of a typical external failure cost? Multiple choice question. Product recalls Warranty repairs Debugging system errors Defective product liabilityarrow_forward
- The billing department prepares the customers' invoices and records the sale in the sales journal, is this considered improper segregation of functions, why or why not?arrow_forward1. What does it mean to say that internal control has limitations and what are these limitations? 2. Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented? 3. What is petty cash and what purpose(s) does it serve? 4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash? 5. Prepare the necessary journal entries for each of the following: (a) On March 1, issued a check to establish a petty cash fund of $1,410 (b)…arrow_forwardA serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and applicable control procedure that address this exposure? A. failure to bill; separation of billing and shipping functions B. failure to bill; bar-codes and RFID technology C. billing errors; reconciliation of shipping documents to sales order D. theft of cash; using ETFsarrow_forward
- The return of defective merchandise increases the amount to be received from the customer. True Falsearrow_forwardWhich of the following is not an external failure cost? a. correcting invoice errors b. rework c. warranty work d. processing returned merchandisearrow_forward5. Which of the following remedies available to the seller for the breach of contract of sale committed by the buyer is correct? Group of answer choices Assuming the goods have already been delivered to the buyer and the buyer wrongfully neglects or refuses to pay the price, the seller may maintain an action for the price of the goods or may file an action to collect a sum of money. If the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may maintain an action for damages. Assuming the goods have not yet been delivered to the buyer and (1) If the buyer has repudiated the sale or (2) If the buyer manifested his inability to perform his obligation to pay the price or (3) If the buyer has committed a breach of contract, the seller may rescind the contract of sale. All of the other choices.arrow_forward
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