EBK MANAGERIAL ACCOUNTING: THE CORNERST
7th Edition
ISBN: 9781337516150
Author: Heitger
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 13, Problem 50E
To determine
Identify the fraud risk factor for each of the given case.
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Consider each of the following situations. Is there a potential problem? Which part of the fraud triangle is involved, if any?
A. Susan is an accounts payable clerk. She sets up creditors in a financial database and pays invoices as they come in. Last year, she won employee of the year and is a valued employee. Through the grapevine, Susan's boss just learned that Susan's brother has a gambling problem.
B. Now suppose that Susan from situation A is now secretary for the head of the marketing department. She keeps track of the vice president of marketing's schedule and handles the correspondence.
C. Keith has been employed for 6 months as a teller at a community bank. All is going well, and his cash drawer has had shortages only twice (of less than P500). The shortages were traced and the problems corrected.
D. At the company Memorial Day picnic and golf outing last week, Nancy noticed that June moved her ball to a better lie when she thought no one was looking. There…
Gladys is in charge of receiving all customer payments, recording the payments, and depositing them at the bank. What element of the fraud triangle is best described here?
Group of answer choices
Opportunity
Rationalization
Incentive/Pressure
Attribution
Gladys has large amounts of student loan debt and a crippling gambling habit. She works part-time job in another city. What element of the fraud triangle is best described here?
Group of answer choices
Opportunity
Fraudy fraud
Pressure/incentive
Rationalization
Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it.
(a). An employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconciling the bank account.
(b) An employee earns minimum wage at a firm that has reported record earnings for each of the last five years.
(c) An employee has an expensive gambling habit.
(d) An employee's monthly credit card payments are nearly 75% of her monthly earnings
Chapter 13 Solutions
EBK MANAGERIAL ACCOUNTING: THE CORNERST
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Why should the incremental cost of a risk response...Ch. 13 - Prob. 4DQCh. 13 - Explain how performance measurement can help...Ch. 13 - Identify and discuss the four kinds of quality...Ch. 13 - Discuss the benefits of quality cost reports that...Ch. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - When will the average unit cost be used for value...
Ch. 13 - How do international issues affect the role of the...Ch. 13 - What it a foreign trade zone, and what advantages...Ch. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - A fire insurance policy on a manufacturing plant...Ch. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Which of the following risk response items would...Ch. 13 - Beginning with strategy, which of the following...Ch. 13 - In which areas of an organizations value chain can...Ch. 13 - Prob. 7MCQCh. 13 - Which of the following items (correctly describes...Ch. 13 - Which of the following is a prevention cost? a....Ch. 13 - Prob. 10MCQCh. 13 - Prob. 11MCQCh. 13 - Prob. 12MCQCh. 13 - Prob. 13MCQCh. 13 - A manufacturing cell within a value stream has...Ch. 13 - Prob. 15MCQCh. 13 - Prob. 16MCQCh. 13 - Prob. 17MCQCh. 13 - Prob. 18MCQCh. 13 - Prob. 19MCQCh. 13 - Prob. 20BEACh. 13 - Quality Cost Report Whitley Company had total...Ch. 13 - Andresen Company had the following quality costs...Ch. 13 - Norris Company implemented a quality improvement...Ch. 13 - Mabbut Company has the following departmental...Ch. 13 - During the week of May 10, Hyrum Manufacturing...Ch. 13 - Prob. 26BEACh. 13 - Prob. 27BEBCh. 13 - Quality Cost Report Loring Company had total sales...Ch. 13 - Cassara, Inc., had the following quality costs for...Ch. 13 - Pintura Company implemented a quality improvement...Ch. 13 - Gumbrecht Company has the following departmental...Ch. 13 - During the week of August 21, Parley Manufacturing...Ch. 13 - Prob. 33BEBCh. 13 - Prob. 34ECh. 13 - Prob. 35ECh. 13 - Crazy Fan Guard Company provides security services...Ch. 13 - Jacks Apps Company researches, develops, and sells...Ch. 13 - Prob. 38ECh. 13 - Prob. 39ECh. 13 - Classify the following quality costs as prevention...Ch. 13 - Bradshaw Company reported sales of 5,000,000 in...Ch. 13 - The controller of Emery, Inc. has computed quality...Ch. 13 - Erba Inc. has the following departmental layout...Ch. 13 - A value stream has three activities and two...Ch. 13 - A Box Scorecard was prepared for a value stream:...Ch. 13 - Match each term in Column A with its related...Ch. 13 - Match each term in Column A with its related...Ch. 13 - Prob. 48ECh. 13 - Refer to Exercise 13-48. Suppose that Kamber is...Ch. 13 - Prob. 50ECh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Dorsey Scott MU Company manufactures and bottles a...Ch. 13 - Danna Wise, president of Tidwell Company, recently...Ch. 13 - Prob. 55PCh. 13 - In 20X1, Don Blackburn, president of Price...Ch. 13 - Brasher Company is transitioning to a lean...Ch. 13 - Merkley Company, a manufacturer of machine parts,...Ch. 13 - Paladin Company manufactures plain paper fax...Ch. 13 - Custom Shutters. Inc., manufactures plantation...Ch. 13 - Prob. 61PCh. 13 - Corporate sustainability reports vary greatly...Ch. 13 - Luna Company is a printing company and a...Ch. 13 - Lindell Manufacturing embarked on an ambitious...Ch. 13 - Paterson Company, a U.S.-based company,...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- CASE: You are a fraud expert and have been asked to investigate possible wrongdoing at a local nonprofit organization. You suspect that one of the workers, Stacey, has been embezzling money. After securing enough evidence to be very confident of Stacey's guilt, you speak with the president of the organization, Jamie. Jamie assures you that Stacey could be doing nothing wrong, that she has known Stacey for years, and Stacey is a good person. Further, she indicates that because of her relationship with Stacey, even if something were going wrong, no action would be taken with respect to the potential fraud. QUESTIONS: 1)How do you respond to Jamie? How do you explain to her what is at stake? 2) What monitoring and control systems should have been in place at Jamie's organization to prevent such a behavior? Explain. 3)Would you recommend an ethics audit to this company? Why?arrow_forwardLarge fraud perpetrators are more likely to use the money for all of the following except: a. to support extramarital affairs. b. to pay taxes c. to pay for expensive vacations. d. to purchase new homes.arrow_forward1. How do you understand Fraud in your own words? Please provide explanation. 2. How do you understand the Fraud Triangle? Please provide explanation. 3. Favorite topic in Forensic Accounting? 4. What recommendations will you give to prevent fraud? 5. Will you consider becoming a Fraud investigator in the Future? Why or why not.arrow_forward
- Danielle purchased a new car with higher payments expecting a raise from her employer. When the raise didn't occur, Danielle started pocketing a bit of cash from the drawer each week to make up for the higher car payment since her employer didn't give her the raise that she deserved. What element of the fraud triangle is most closely related to Danielle's issue? A) Perceived pressure B) Opportunity C) Rationalization D) All of these answer choices are correct.arrow_forwardWhich of the following is NOT a behavioral red flag of the fraudster? a) Addictions b) Switches jobs every 2-3 years c) Peer pressure d) Living beyond meansarrow_forwardAssume that brooke miles accounts payable clerk for west coast design inc.stole $48,350 by paying fictitious companies and cashed the checks at a local banks. Describe a control procedure that would have prevented or detected the fraud?arrow_forward
- Match each situation with the fraud triangle factor-opportunity, financial pressure, or rationalization-that best describes it. a. An employee's monthly credit card payments are nearly 75% of his or her monthly earnings. Financial Pressure Rationalization An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. b. Opportunity C. An employee has an expensive gambling habit. An employee has check-writing and signing responsibilities for a small company, as well as d. reconciling the bank account.arrow_forwardYou are a newly hired fraud examiner. You have been asked to write a preliminary report on thescenario below. The Dude Fraud CaseIn his own words, Daniel Jones was “The Dude.” With his waist-long dreadlocks, part-time rockband, and well-paid job managing a company’s online search directory—he seemed to have itall. Originally from Germany, Jones, now age 32, earned his doctorate and taught at theUniversity of Munich before coming to the United States, where he started his career incomputers. In 1996, Jones started working with the company as a director of operations for U.S.-Speech Engineering Service and Retrieval Technology—working on a new, closely guardedsearch engine tied to the company’s .net concept.The company allows employees to order an unlimited amount of software and hardware, at nocost, for business purposes. Between December 2001 and November 2002, Jones ordered or usedhis assistant and other employees (including a high school intern) to order nearly 1,700 pieces…arrow_forwardSelect the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer. A group of immigrants moved from town to town in the Pacific Northwest perpetrating the same fraud. An advanced member of the group obtained a paycheck from the largest employer in the town by paying a premium to the check’s value. He then scanned the check and used a variety of software packages to prepare fictitious paychecks from the employer. The group arrived on the next payday, cashed the checks at the local establishment, and moved to another town before the check was presented for payment at the local bank. This is an example of what type of fraud? a. Input fraud b. Processor fraud c. Computer instruction Fraud d. Data fraud e. Output fraudarrow_forward
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