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 2, Problem 1SC
(a)
To determine
The ineffective internal control that caused fraud and recommendation to prevent fraud in the future.
(b)
To determine
The ineffective internal control that caused fraud and recommendation to prevent fraud in the future.
(c)
To determine
The ineffective internal control that caused fraud and recommendation to prevent fraud in the future.
(d)
To determine
The ineffective internal control that caused fraud and recommendation to prevent fraud in the future.
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As the lead accountant for a small company, you notice that inventory purchases from a certain vendor have increased dramatically over the past few months, whereas purchases from all other vendors have decreased. You suspect that something may not be right and that there may be a fraudulent relationship between someone in your company and the vendor that is getting increased business.
question:
Which theft act investigative method would you use to investigate your suspicions? state evidences that you to support suspicions.
You are the newly hired Auditor of a large distributor company. One day you are called by the Chairman of the Audit Committee and was directed to analyze and interpret the situations as presented below.
1. Two (2) delivery trucks full of inventory items were not allowed to be included in the actual count. As claimed by the warehouse supervisor, these are for delivery to the customers.
2. Accounts receivable without customers' subsidiary records.
3. Sales revenue growth shows an upward trend with minimal increase in cost of goods sold.
4. Significant discrepancies on physical count as compared with the inventory records.
5. Large percent of revenues booked in the fourth quarter of Year 1 and large percent of sales returns booked in the first quarter of Year 2.
In each of the situation above, analyze and evaluate, then decide whether it is or not a symptom of a revenue or inventory fraud. Explain your answer BRIEFLY.
The following are various changes in audit circumstances.
Audit Circumstance
The client began experiencing an increase in returns due to product changes that resulted in increased defects.
You found several pricing errors in your substantive tests of transactions for sales.
In performing substantive tests of transactions for cash receipts, you found that receipts were promptly recorded in customer accounts, but there were delays in depositing the receipts at the bank.
The client entered into a new loan agreement with the bank. Accounts receivable are pledged as collateral for the loan.
The client did not reconcile the accounts receivable subsidiary records with the accounts receivable balance in the general ledger on a regular basis.
Substantive analytical procedures indicated a significant slowing in accounts receivable turnover.
The client entered into sales contracts with new customers that differ from the client’s standard sales contracts.
The client had a significant increase in…
Chapter 2 Solutions
Fraud Examination
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - What are some different types of pressures?Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQ
Ch. 2 - Prob. 12DQCh. 2 - Prob. 1TFCh. 2 - Prob. 2TFCh. 2 - Management's example or modeling is of little...Ch. 2 - Prob. 4TFCh. 2 - Prob. 5TFCh. 2 - Prob. 6TFCh. 2 - Prob. 7TFCh. 2 - Prob. 8TFCh. 2 - Prob. 9TFCh. 2 - Prob. 10TFCh. 2 - Prob. 11TFCh. 2 - Prob. 12TFCh. 2 - Prob. 13TFCh. 2 - Prob. 14TFCh. 2 - Prob. 15TFCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQCh. 2 - Prob. 8MCQCh. 2 - Prob. 9MCQCh. 2 - Prob. 10MCQCh. 2 - Prob. 11MCQCh. 2 - Prob. 12MCQCh. 2 - Prob. 13MCQCh. 2 - Prob. 14MCQCh. 2 - Prob. 15MCQCh. 2 - Prob. 16MCQCh. 2 - Prob. 17MCQCh. 2 - Prob. 18MCQCh. 2 - Prob. 19MCQCh. 2 - Prob. 20MCQCh. 2 - Prob. 1SCCh. 2 - Case 2
A few years ago, there was a large oil...Ch. 2 - Prob. 3SCCh. 2 - Prob. 4SCCh. 2 - Prob. 5SCCh. 2 - Prob. 6SCCh. 2 - Prob. 7SCCh. 2 - Prob. 8SCCh. 2 - Prob. 9SCCh. 2 - Prob. 10SCCh. 2 - Case 11
As a new staff member in a large national...Ch. 2 - Prob. 12SCCh. 2 - Prob. 13SCCh. 2 - Prob. 14SCCh. 2 - Case 15 But I intended to pay it all back, I...Ch. 2 - Prob. 1.1CSCh. 2 - Prob. 1.2CSCh. 2 - Prob. 1.3CSCh. 2 - Prob. 2.1CSCh. 2 - Prob. 2.2CSCh. 2 - Prob. 2.3CSCh. 2 - 1. What factors in Johnson’s control environment...Ch. 2 - Prob. 3.2CSCh. 2 - Prob. 3.3CSCh. 2 - How did trust contribute to Mr. Armstrongs fraud?Ch. 2 - Prob. 4.2CSCh. 2 - Prob. 5.1CSCh. 2 - Prob. 5.3CSCh. 2 - Prob. 5.4CS
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