
Case 5
While performing an audit of TCC Corporation, the audit team noticed something that didn’t look right. The company’s receivables aging report showed that bank loan eligible receivables were approximately $91 million. The audit team calculated the bank loan eligible receivables to be approximately $50 million. The client didn’t identify specific accounts in writing off
What are some of the red flags that point to the possibility of fraud?
What would you say was the main problem in this case that allowed the fraud to occur?

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Chapter 4 Solutions
Fraud Examination
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