Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 15, Problem 11P
a.
To determine
Determine the controls weaknesses that allowed Mr. J to carry out the frauds.
b.
To determine
Determine the controls to reduce the risk fraud.
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Branch could not ignore this. On August 16th, one month after that initial suspicious phone call and fax from MST, Branch asked Robertson, Samlal’s supervisor, to talk to her privately. They went into a conference room and Branch told Robertson about her suspicions that Samlal
was using his authority to override the system of internal controls and conducting shady transactions. She mentioned that Samlal directed MST’s off-lease computer equipment to his friend Tim Johnson at Maverick Fitness, and that he gave the Bishop High School account to his friend Albert. Further, he had Enterprise pay to ship the equipment from the University of North Carolina to Maverick, even though this was against company policy. Robertson decided to conduct an internal audit.
During the two-week audit, Enterprise discovered that Samlal had diverted part or all of the proceeds from several shipments of computers from April 4, 2018–August 2019. Also, several companies, including Maverick Fitness…
Branch could not ignore this. On August 16th, one month after that initial suspicious phone call and fax from MST, Branch asked Robertson, Samlal’s supervisor, to talk to her privately. They went into a conference room and Branch told Robertson about her suspicions that Samlalwas using his authority to override the system of internal controls and conducting shady transactions. She mentioned that Samlal directed MST’s off-lease computer equipment to his friend Tim Johnson at Maverick Fitness, and that he gave the Bishop High School account to his friend Albert. Further, he had Enterprise pay to ship the equipment from the University of North Carolina to Maverick, even though this was against company policy. Robertson decided to conduct an internal audit.
During the two-week audit, Enterprise discovered that Samlal had diverted part or all of the proceeds from several shipments of computers from April 4, 2018–August 2019. Also, several companies, including Maverick Fitness and Trystone,…
Subsequently Discovered Facts. On June 1, Sidney Faultless of A. J. Faultless & Co., CPAs, noticed some disturbing information about the firm’s client, Hopkirk Company. A story in the local paper mentioned the indictment of Tony Baker, whom Faultless knew as the assistant controller at Hopkirk. The charge was mail fraud. Faultless made discreet inquiries with the controller at Hopkirk’s headquarters and learned that Baker had been speculating in foreign currency futures. In fact, part of Baker’s work at Hopkirk involved managing the company’s foreign currency. Unfortunately, Baker had violated company policy, lost a small amount of money, and then decided to speculate some more, lost some more, and eventually lost $7 million of company funds. The mail fraud was involved in Baker’s attempt to cover his activity until he recovered the original losses. Most of the events were in process on March 1, when Faultless had signed and dated the unmodified opinion on Hopkirk’s financial…
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Explain discretionary access privileges.Ch. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - What is a vaccine, and what are its limitations?Ch. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - What are the risks from equipment failure?Ch. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - End-user computing has become extremely popular in...Ch. 15 - Prob. 15DQCh. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Prob. 18DQCh. 15 - Prob. 19DQCh. 15 - Prob. 20DQCh. 15 - Prob. 21DQCh. 15 - Prob. 22DQCh. 15 - Prob. 23DQCh. 15 - Prob. 24DQCh. 15 - Prob. 25DQCh. 15 - Describe a digest within the context of a digital...Ch. 15 - What is a digital envelope?Ch. 15 - Prob. 28DQCh. 15 - Prob. 29DQCh. 15 - Prob. 30DQCh. 15 - Prob. 31DQCh. 15 - Discuss the unique control problems EDI creates.Ch. 15 - Prob. 33DQCh. 15 - Prob. 34DQCh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQCh. 15 - Prob. 9MCQCh. 15 - Prob. 10MCQCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Better Business Company (BBC) is in the process of...Ch. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13P
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