Chapter 4, Problem 4EC

"Dennis Jones, an old college friend, contacted you last week. Dennis owns several car washes, and he believes that financial statement fraud may be occurring. (He pays each car wash manager a bonus if a certain level of profits is earned and is worried that some managers are overstating profits to earn a higher bonus.)Dennisiscomingovertoday to see whether you can help him determine if his suspicions are valid. He is bringing along the financial statements for each car wash (income statements, balance sheets, and cash flow statements) for the last five years.1.What kind of financial statement analysis could you perform to help Dennis detect possible fraud?"

Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Coleen has told her accountant to provide the bank with just the balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. The accountant, Jim Long, only sent over the balance sheet to First Federal Bank Did Jim act ethically or unethically? Why?

As the auditor for Company A, you discover that a material sale ($500,000 sale; cost of goods of $300,000) was made to a customer this year.  Because of poor internal accounting controls, the sale was never recorded.  Your client makes a management decision not to bill the customer because such a long time has passed since the shipment was made.  You determine, to the best of your ability, that the sale was not fraudulent.  Using the framework for ethical decision making, determine whether the auditor should require either a recording or a disclosure of the sales transaction.  Instructions: Using the framework for ethical decision making, determine whether the auditor should require either a recording or a disclosure of the sales transaction.  Please make sure to use at least 100 words in your response.  Once you give your response, please respond to at least two of your peers using at least 50 words in your responses.  Remember to follow the netiquette guidelines found in the course…