Most employees that choose to commit fraud against their employers feel justified in doing so. For example, if an employee gets demoted and has to take a pay cut or doesn't get a raise or bonus for a given year, that employee may feel justified in taking what is referred to "wages in kind." Wages in kind is where the employee creates his or her own wages. What might a company do to prevent an employee from taking "wages in kind?"

Most employees that choose to commit fraud against their employers feel justified in doing so. For example, if an employee gets demoted and has to take a pay cut or doesn't get a raise or bonus for a given year, that employee may feel justified in taking what is referred to "wages in kind." Wages in kind is where the employee creates his or her own wages. What might a company do to prevent an employee from taking "wages in kind?"

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Accounting True or False 1. A manager could be held criminally liable for the misdeeds of the company. 2. It is not important for people to save for retirement when they can collect Social Security. 3. Effectiveness and efficiency mean the same thing. 4. Older workers are slower and costlier than young workers.
True or False: Sarah is a manager who pays workers less than what they deserve because she knows they are afraid to lose their job. Sarah's behaviour is illegal. Question 6 options: True False
Why do people commit fruad in there jobs? what should a manager do if some of its workers committed fraud and been fired and charged criminally.
One of the criticisms of the NLRB is that they are too powerful and are constantly fining companies exorbitant amounts of money for not following unionization laws to the letter. True False
What is the concept behind separation of duties in establishing internal control? a. Employee fraud is less likely to occur when access to assets and access to accounting records are separated. b. The company’s financial accountant should not share information with the company’s tax accountant. c. Duties of middle-level managers of the company should be clearly separated from those of top executives. d. The external auditors of the company should have no contact with managers while the audit is taking place.
(b)A waste disposal company has breached tax regulations, environmental regulations and health and safety regulations. The auditor has been approached by the tax authorities, the government body supervising the award of licences to such companies and a trade union representative. All of them have asked the auditor to provide them with information about the company. The auditor has also been approached by the police. They are investigating a suspected fraud perpetrated by the managing director of the company and they wish to ask the auditor certain questions about him. Required: Describe how the auditor should respond to these types of request.
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 156 Selling price Units in beginning inventory Units produced Units sold 9,500 9,100 Units in ending inventory 400 Variable costs per unit: $29 $ 71 $ 17 $ 21 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 142,500 $ 9,900 What is the net operating income (loss) for the month under variable costing?
A manager at a "Check Into Cash" business defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business?
What are three categories of employee fraud? Which is mostcommon? Which is associated with the largest losses?
The payroll register for Heilman Mfg. for the week of August 20th indicates the following: salaries $1,500,000 Social Security Taxes Withheld 90,000 Medicare tax withheld 22,500 Fereral income taxes withheld 300,000 In addition state and federal unemployment taxes were calculated at a rate of 5.4% and 0.8% respectively, on $270,000 of salaries. Journalize the entry to record payroll for the week of 8/20. Then using the same information from payroll register, journalize the entry to record the payroll tax expense incurred for the same week.
ZZZZ best company fraud. in testimony before Congress, George Greenspan reported that one means he used to audit the insurance restoration contracts was to verify that his client actually received payment on those jobs. How can such apparently reliable evidence lead an auditor to an improper conclusion?
5. What does Tina mean in her statement to the Clare County Review "the effects of an embezzlement are far reaching and detrimental for everyone"? Who were all the stakeholders that were all affected in this case? How was each of them harmed? 6. Jenifer was caught embezzling via the payroll system, how else might she have been stealing from the company that was never proven? 7. Why do you think Jenifer embezzled the money? 8. Do you think her sentencing is too lenient, too harsh, or is appropriate? Why? 9. What would you do if your friend and employee was stealing from a company that you owned?