As is mentioned in the “The CPA Journal”, “many studies suggest fraud is more likely to occur when someone has an incentive (pressure) to commit fraud, weak controls or oversight provide an opportunity for the person to commit fraud, and the person can rationalize the fraudulent behavior (attitude).” This is known as the fraud triangle. There are two types of fraud: fraudulent financial reporting and misappropriation of assets. For the first one, this kind of frauds came from the top management
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Jie Chai (Jessie) MACC-663-OL1 Paul Zikmund Due Date: Sep.15th Individual assignment 2 “The Fraud Triangle is a model for explaining the factors that cause someone to commit occupational fraud”; it is widely used within business companies. It consists of three components that, together, lead to fraudulent behavior. Those three factors that must be present at the same time in order for an ordinary person to commit fraud: pressure, opportunity and rationalization. Michael D. Frenza has mentioned
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Michelle B. Case Study #2 Internal Control Acct Fin: Managerial Use, Analysis October 6, 2013 Summary: The LJB Company is a local distributor located on New York’s lower east side. I was asked evaluate their system of internal controls because they are planning togo public in the near future. The president of the company wants to be aware of any new regulations required of his company if they go public, so he met with my colleague at a local restaurant. The president of the company explained
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Assignment 4 Saks Fifth Ave. Auditing Case Question 1: In my opinion, the store’s zero-tolerance policy for theft was unreasonable. An employee which may otherwise have been an excellent worker may have had a momentary lapse such as was the case of Fierro. The store’s zero-tolerance policy has thus removed a top employee for what was a trivial amount of $10 dollars, which may not even be considered as theft, as the employee discounts were permitted in other areas of the store. I believe that
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a) Several internal control procedures were violated in this case due to the success of Adam Kimble. The following is a list of the violated procedures: separation of duties, bonding of employees, requirement of extended absence, pre-numbered documents, and performing evaluations of inventory and documentation at regular intervals. First, separation of duties between two or more individuals reduces the opportunities for either employee to defraud the company. It is difficult for two employees
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Accounting Information Systems Study Guides Chapter 1 Review Questions: Page 25, number 2, 11, 14, Page 26, number 27, 35, Discussion questions: Page 26, number 11*, 14 Multiple Choice : 1. C 8. A (lack of independence) 9. D Why Sarbanes was brought about? Short essay b. why was it important what was the intent what is it preventing? Know the difference between AIS and management information systems * know attributes of each What is the issues of information, relevance
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Define Forensic Accounting * The application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law * Forensic accounting does not equal fraud Define Fraud * Fraud is the result of misleading, intentional actions or inaction to gain an advantage Areas forensic accounting investigates * Public and private companies. Which part of SOX is the part that CEO relies on forensic accountants? *
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Financial Reporting and Disclosure Corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company Importance of Corporate Governance Disclosures * Stakeholders are paying more attention to what is reported * The global financial crisis has sharpened the lens through which corporate governance structures are held to account
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Kaibin Wang Fraud Examination Report To: Chief Executive Officer of Vortex From: Kaibin Wang Re: Examination of Potential Misappropriation Date: 03/29/2015 Introduction: Vortex is a small manufacture company which makes office furniture. It has $300,000 of over-budget annual payroll. I have been retained by Vortex to be a Certified Fraud Examiner to help them detect if there is any fraud in this company. Question: A. What items would you discuss in your brainstorming
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The Fraud Triangle Have you ever heard of the “80/10/10” saying? It suggests that 10 percent of the population is honest; they will not lie, steal or cheat under any circumstances. Another 10 percent of the population is dishonest and will participate in criminal activities whenever they can. The remaining 80 percent, given sufficient pressures and the right opportunity may behave unethically. This is the first in a series of newsletters dealing with fraud, internal control and fraud awareness, and
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