Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Chapter 16, Problem 2P
To determine
Explain the types of internal frauds threats and the method of protection against each fraud threats.
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For this assignment, you are to construct a diagram of the Fraud Triangle and clearly label each component of the Fraud Triangle. For each of these three components, provide the following:
An explanation (two to three paragraphs) of each of the three components, specifically addressing how it could contribute to fraud.
For each component of the Fraud Triangle, provide the following:
List and briefly discuss internal controls for each of the three components that could help to reduce the impact of potential frauds related to that component of the Fraud Triangle.
Note: This means that you will have a total of 24 internal controls documented. A few of the internal controls might be common to each component but please tailor them to the component you are referring to and do not copy and paste the same eight internal controls for each component.
While APA style is not required for the body of this assignment, solid academic writing is expected and in-text citations and references should be…
AC.
1. What kind of big data-based fraud prevention product can be used in fraud monitoring?
2. What kind of big data-based fraud prevention product can be used in fraud risk management?
Please explain with examples
Define “fraud.” List andbriefly discuss the three major components of the fraud triangle.
Chapter 16 Solutions
Accounting Information Systems
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - What is the importance of the SPL?Ch. 16 - Prob. 9RQCh. 16 - Prob. 10RQ
Ch. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - What tests may be conducted for identifying...Ch. 16 - Prob. 14RQCh. 16 - Prob. 15RQCh. 16 - Prob. 16RQCh. 16 - Prob. 17RQCh. 16 - Prob. 18RQCh. 16 - Prob. 19RQCh. 16 - Prob. 20RQCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - What are rounding error routines, and why are they...Ch. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - The systems development life cycle is a...Ch. 16 - Prob. 10DQCh. 16 - Prob. 11DQCh. 16 - Compare and contrast the following techniques...Ch. 16 - Prob. 13DQCh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Which of the following is NOT an SDLC controllable...Ch. 16 - Prob. 4MCQCh. 16 - Which of the following statements is NOT correct?...Ch. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQCh. 16 - Prob. 8MCQCh. 16 - Prob. 9MCQCh. 16 - Prob. 10MCQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - The Balcar Companys external auditors are...Ch. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Prob. 14PCh. 16 - Prob. 15PCh. 16 - Prob. 16PCh. 16 - Prob. 17PCh. 16 - Prob. 18P
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Similar questions
- All frauds involve key elements. Identify and describe using examples, the elements involve in an embezzlement fraud.arrow_forwardAy In addition to the fraud triangle, what are a couple other tools used to indicate the potential for fraud. Explain themarrow_forwardWhich of the following is not included in a vulnerability chart? a. Internal controls that a company plans to institute in the future. b. Breakdowns in key internal controls that may have created fraud opportunities. c. Theft investigation methods d. Explanations of the fraud triangle in relation to suspects of fraud.arrow_forward
- Understanding what constitutes fraud and understanding the framework are a part of developing an internal control program. The fraud triangle is a framework that is used to understand and explain what the motivation could be when a person decides to commit fraud. Thinking about the fraud cases that you are aware of, how would the fraud triangle explain fraudulent behavior?arrow_forwardFraud experts often say that there are three principal factors that contribute to fraud. Identify and explain each of these factors.arrow_forwardIf one of the three elements of the fraud triangle is not present, can fraud still be perpetrated? Explain. Identify factors (red flags) that would be strong indicators of opportunities to commit fraud. Is the ability to rationalize the fraud an important aspect to consider when analyzing a potentially fraudulent situation? What are some of the common rationalizations used by fraud perpetrators? Define and illustrate kiting. What controls should the client institute to prevent it?arrow_forward
- Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer. Which of the following statements is (are) true? a. The type of computer fraud that is simplest and most common and that requires the least amount of skill is data b. The type of computer fraud that is the most difficult because it requires the most skill is computer instructions fraud c. The biggest cause of data breaches is organized by hacker groups. d. Losses from the theft of physical assets are much greater than those from the electronic theft of data e. In the absence of controls, it is not hard for a dishonest employee to steal data.arrow_forwardDescribe the fraud triangle andidentify conditions for fraud.arrow_forwardIn fraud examiners’ terminology, what is predication?arrow_forward
- a) Internal controls play an important role in reducing the risks of fraudulent activities in any organization. Further, advanced technology helps accountants in reducing fraud. Explain how an advanced technology transaction processing system reduces fraudulent activities from any organizing. b) Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment. Sales Department Accounting Department Warehouse Shipping Department Slock Release Packing Packing Customer Sales Order Release Packing Customer Order Reconcle Packing sip and Sales order, send Camier Record in Shipping AR Sub Ledge Pick Goods Update Inventory send goods Shipping Bi Customer Approves cred, prepare Update Accounts Inventory Sub ledger Sales documents Shipping Log AR Control Sales Order Stock Release Packing Sip Sales Stock…arrow_forwardExplain the three special characteristics of management fraud: a. The fraud is perpetrated at levels of management above the one to which internal control structures generally relate. b. The fraud frequently involves using the financial statements to create an illusion that an entity is healthier and more prosperous than, in fact, it is. c. If the fraud involves misappropriation of assets, it frequently is shrouded in a maze of complex business transactions, often involving related third parties. Please provide me a correct and clear explanations. Thank you!arrow_forwardWhich of the following is designed specifically to detect fraud? 1. A surprise visit to the client's warehouse. 2. Looking at little-used or miscellaneous accounts. 3. Testing internal controls for operating deficiencies. 4.1 and 2 only. 5.1 and 3 only. O 1 O 2 0 3 0 4 0 5arrow_forward
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