Fleming and Company CPAs, issued an unqualified opinion on the 20X3 financial statements of Walton Corporation Late in 20X4, Walton determined that its controller had embezzled over $2,000,000. Fleming was unaware of the embezzlement. Walton has decided to sue Fleming to recover the $2,000,000. The suit is based upon Fleming's failure to discover the missing money while performing the audit. Which of the following is Fleming's best defense? Multiple Choice The controller was Walton's agent and as such had designed the controls which facilitated the embezzlement Fleming had no knowledge of the embezzlement. 4 That the audit was performed in accordance with GAAS The financial statements were presented in conformity with GAAP. < Prev 15 of 45 Next >

Fleming and Company CPAs, issued an unqualified opinion on the 20X3 financial statements of Walton Corporation Late in 20X4, Walton determined that its controller had embezzled over $2,000,000. Fleming was unaware of the embezzlement. Walton has decided to sue Fleming to recover the $2,000,000. The suit is based upon Fleming's failure to discover the missing money while performing the audit. Which of the following is Fleming's best defense? Multiple Choice The controller was Walton's agent and as such had designed the controls which facilitated the embezzlement Fleming had no knowledge of the embezzlement. 4 That the audit was performed in accordance with GAAS The financial statements were presented in conformity with GAAP. < Prev 15 of 45 Next >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

Fleming and Company CPAs, issued an unqualified opinion the 20x3 financial statements of Walton Corporation Late in 20X4, Walton determined that its
controller had embezzled over $2,000,000. Fleming was unaware of the embezzlement. Walton has decided to sue Fleming to recover the $2,000,000. The
suit is based upon Fleming's failure to discover the missing money while performing the audit. Which of the following is Fleming's best defense?
Multiple Choice
The controller was Walton's agent and as such had designed the controls which facilitated the embezzlement
Fleming had no knowledge of the embezzlement.
That the audit was performed in accordance with GAAS
The financial statements were presented in conformity with GAAP.
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