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Concept explainers
To identify the type of fraud in the following cases:
Marcus pays $30 for a baseball of $70 by changing the price-tag.
Craig loses $500 by investing in a multilevel marketing scheme.
A bank employee diverts the amount from a wealthy customer’s account to his personal account. The bank was held responsible for the act of the employee.
A CEO showed profits for the year 2018, when there was a loss of $150 million. The CEO was held responsible and convicted with jail and fine.
The government lost $50 million as it was overcharged by contractor and sub-contractors in the Middle East for fictitious hours and assets.
A student accessed the school computer and changed her school grade to be accepted into graduate school.
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Chapter 1 Solutions
Fraud Examination
- Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $831. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary $ 144,100 Jessie's craft sales 18,400 Interest from certificate of deposit 1,650 Interest from Treasury bond funds 716 Interest from municipal bond funds 920 Expenditures: Federal income tax withheld from Joe's wages $ 13,700 State income tax withheld from Joe's wages 6,400 Social Security tax withheld from Joe's wages 7,482 Real estate taxes on residence 6,200 Automobile licenses (based on weight) 310 State sales tax paid 1,150 Home mortgage interest 26,000 Interest on Masterdebt credit card 2,300 Medical expenses (unreimbursed) 1,690 Joe's employee expenses (unreimbursed) 2,400 Cost of…arrow_forwardNeed General Accounting Question solutionarrow_forwardGive me correct option? General accounting questionarrow_forward
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- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
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