Identify one specific type of accounting fraud. What damage does the perpetration cause? What could be done to prevent it?

Q: Explain what is meant by the fraud triangle

A: A Fraud Triangle is a framework commonly used in auditing to explain the motivation behind an…

Q: Why must auditors distinguish between fraud committed by employees and management?  Are auditors…

A: It is one of the auditor's responsibility to obtain reasonable assurance that the financial…

Q: What are two positive and two negative consequences that this might pose to the company in future…

A: The question is asking about the potential positive and negative consequences that a company might…

Q: Critically explain the key features of the Sarbanes-Oxley Act 2002 which aims at protectinginvestors…

A: The Sarbanes-Oxley Act of 2002 (SOX) was enacted in the United States in response to a series of…

Q: What was the wells fargo account fraud scandal? What illegal behavior was conducted?

A: The Wells Fargo account fraud scandal refers to a high-profile case involving Wells Fargo, one of…

Q: What are the elements of the fraud triangle? How can an internal control system limit reduce the…

A: Fraud means intentional concealment or misrepresentation of material facts for gaining personal…

Q: What is the best way to reduce financial statement fraud?

A: There are five basic types of financial statement fraud exist in the entity which are as…

Q: Which one of the following is not an advantage of internal controls? Select one: a. It safeguards…

A: Internal control is an auditing and accounting tool that ensures operational efficiency and…

Q: How is Benford's Law used to investigate cases of fraud

A: According to Benford's Law, the odds are not random. In reality, the first digit has a 12.5 percent…

Q: causes of business and accounting fraud

A: Fraud is an illegal activity of committing an offence with a willful intention to deceive others for…

Q: Explain what a ‘fraud risk factor means’ and discuss the three conditions generally present when…

A: Auditing is the inspection of the financial records of the company or organisations with no bias and…

Q: There are several steps involved in the fraud theory approach. What are they?

A: Fraud theory approach is an effective tool that can help in the deeper understanding of the…

Q: Why would a financial institution’s PEP customers be required to provide documentation to evidence…

A: Given, Political Exposed Persons (PEPs) are characterized as high-risk clients who have better…

Q: Describe the difference between errors and fraud in financial statements.

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: Why do fraud examiners handle information in a different manner than auditors? Why is thisimportant?

A: Fraud examiners handle information in a different manner than auditors, in order to minimize the tax…

Q: What role does internal control play in ensuring accurate revenue recognition and preventing fraud?

A: Internal control is the collective term for the methodical actions taken by a company to protect its…

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.