
Concept Introduction:
- Ethics:
The ethics can be defined as the beliefs of a person that helps him to distinguish between right decisions and wrong decisions or right paths or wrong paths.
- Fraud triangle:
A fraud triangle can be defined as framework designed to explain the reasoning behind a person's decision to commit fraud at workplace. The stages of reasons for fraud can be − prevention, opportunity and rationalisation.
- Prevention:
It is way to arrange things or manage things that will give the least scope to any fraud.
- Internal controls:
Internal controls are the processes that make sure that things are done in such a way that would ensure the integrity of financial and accounting fraud and they will also help in preventing frauds.
- Sarbanes-Oxley Act:
This act focus on proper documentation and verification of well-planned internal controls set-up in the organization
- Audit:
Audit ensures that financial statements and prepared in accordance with GAAP or not.
- Dodd-Frank Act:
According to this act, SEC pays 10 % to 30 % of sanctions exceeding $ 1 million.
To match:
The given phrases or terms to with the given descriptions −
Given phrases −
- Ethics:
- Fraud triangle
- Prevention
- Internal controls
- Sarbanes-Oxley Act
- Audit
- Dodd-Frank Act
Given description −
- Requires the SEC to pay whistle-blowers
- Examines whether financial statements are prepared using GAAP, it does not ensure absolute accuracy of the statement.
- Requires documentation and verification of internal controls and increases emphasis on internal control effectiveness.
- Procedures step to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies.
- A less expensive and more effective means to stop fraud
- Three factors push a person to commit fraud: opportunity, pressure; and rationalization
- Beliefs that distinguish right from wrong

Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
Fundamental Accounting Principles
- The actual cost of direct labor per hour is $16.25 and the standard cost of direct labor per hour is $15.00. The direct labor hours allowed per finished unit is 0.60 hours. During the current period, 4,500 units of finished goods were produced using 2,900 direct labor hours. How much is the direct labor rate variance? A. $3,625 favorable B. $3,625 unfavorable C. $4,350 favorable D. $4,350 unfavorablearrow_forwardOn January 1 of the current year, Piper Company issues a 4-year, non-interest-bearing note with a face value of $8,000 and receives $4,952 in exchange. The recording of the issuance of the note includes a: a. credit to Notes Payable for $4,952. b. credit to Discount on Notes Payable for $3,048. c. debit to Discount on Notes Payable for $3,048. d. debit to Cash for $8,000.arrow_forwardPLease helparrow_forward
- What is the budgeted total cost of direct materials purchases?arrow_forwardHy expert provide answer with calculationarrow_forwardDuring September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.arrow_forward
- Bluesy Electronics recorded the following financial data: Net Sales $720,500 Average Inventory at Cost = $80,200 Gross Margin Percentage = 42% Calculate the GMROI.arrow_forwardNeed help this question solutionarrow_forwardXYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is 35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





