Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A frauddetection firm has detected minor fraudulent activities in 1.61% of transactions, and serious fraudulent activities in 0.83% of transactions. Assumethat fraudulent transactions remain stable.a. What is the probability that there are minor fraudulent activities in fewer than 2 out of 100 transactions?Note: Do not round intermediate calculations. Round your final answer to 4 decimal places.Probabilityb. What is the probability that there are serious fraudulent activities in fewer than 2 out of 100 transactions?Note: Do not round intermediate calculations. Round your final answer to 4 decimal places.Probability4

Step 1: For both parts, we can model the situation using the binomial distribution since the number…

Answered: Fraud detection has become an…

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter4: Linear Regression

Section: Chapter Questions

Problem 21P: Consider again the example introduced in Section 4.5 of a credit card company that has a database of...

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17. Please answer asap!!!
Which of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.
Suppose you incorrectly recorded a deposit as $450. The bank discovered the correct amount was $480. The bank will send a debit memo to inform you of the error. (True or False)
Investigating a Fraud. Suppose you are auditing cash disbursements and discover severalpayments to a company you are unfamiliar with and cannot find information about this company on the Internet or in the local telephone directory. The invoices from this company have numbers very close to each other in the sequence, there is no phone number on the invoice, and each bill is for a dollar amount just under the amount that would require additional approvals before payment. Based on this information, you now suspect this may be a fraud.Required:Based on your suspicions, how would you change the audit procedures you would perform, and how might you change the evidence you gather?
V4. Hayden Corporation uses an enterprise resource planning (ERP) system. In their audit of receivables and revenues, the auditors have identified the following data elements in the corporation’s database that may be used for data analytics applications: Customer balance Customer credit limit and credit rating Customer total annual sales Customer purchases by date Customer returns by date Customer name Customer shipping address Required: a. Describe two data analytic applications that might be used to audit the existence of receivables and occurrence of sales. b. Describe one data analytic application that might be used to audit the valuation of receivables.
please answer all the following and give the complete solutions on how you come up with that .
What is the overall reliability that bank loans will be processed accurately if each of the 5 clerks shown in the chart has the reliability shown? .95 .95 .95 .95 .95 PX Hint: The three paths are done in parallel, followed by an addi- tional independent step.
The bank account of Kendrick Boats has an available balance of $1,215 and a check book balance of $1,422. There are uncollected deposits totaling $740. What is the amount of the disbursement float on this account? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is an external threat to revenue security? (select all that apply) 303 Walk-outs or skipping on the check Unsigned credit cards Quick-change artists Bonding
Please answer correctly no. 29 and provide computation. Thank you:)
Case 8 Decide whether each situation is or is not a symptom of revenue fraud. Then explain (1) why the situation isor is not a symptom and (2) if it is a symptom, how itwould be found using computer queries or traditionalmethods. YIN Sales discounts appear too high. YIN Accounts receivable increases as a percentage of revenues. YIN Bad debt allowance increasesby the same percentageas accounts receivable. YIN Increase in sales returns. YIN Large percent of revenues recorded in thefourth quarter. YIN Unexplained reconciling items on the bankstatement.
You have $13,800 on deposit with no outstanding checks or uncleared deposits. Assume you deposit a check for $5,400 . a. Does this create a disbursement float or a collection float? b. What is your available balance? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g. 32.) c. What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. )

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