Fraud Examination
5th Edition
ISBN: 9781305079144
Author: W. Steve Albrecht, Chad O. Albrecht, Conan C. Albrecht, Mark F. Zimbelman
Publisher: Cengage Learning
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Question
Chapter 5, Problem 14MCQ
To determine
The most common symptom of a fraudulent letter is.
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Students have asked these similar questions
1. How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place? Please asnwer this. thank youuu
Provide an appropriate response based on the following scenarios.
Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented?
Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?
1. What does it mean to say that internal control has limitations and what are these limitations?
2. Provide an appropriate response based on the following scenarios.
Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented?
Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?
3. What is petty cash and what purpose(s) does it serve?
4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash?
5. Prepare the necessary journal entries for each of the following:
(a) On March 1, issued a check to establish a petty cash fund of $1,410
(b)…
Chapter 5 Solutions
Fraud Examination
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - 3. What are accounting symptoms
Ch. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Prob. 11DQCh. 5 - Prob. 1TFCh. 5 - Prob. 2TFCh. 5 - Prob. 3TFCh. 5 - Prob. 4TFCh. 5 - Prob. 5TFCh. 5 - Prob. 6TFCh. 5 - Prob. 7TFCh. 5 - Prob. 8TFCh. 5 - Prob. 9TFCh. 5 - Prob. 10TFCh. 5 - Prob. 11TFCh. 5 - Prob. 12TFCh. 5 - Prob. 13TFCh. 5 - Prob. 14TFCh. 5 - Prob. 15TFCh. 5 - Prob. 16TFCh. 5 - Prob. 17TFCh. 5 - Prob. 18TFCh. 5 - Prob. 19TFCh. 5 - Prob. 20TFCh. 5 - Prob. 21TFCh. 5 - Prob. 22TFCh. 5 - Prob. 23TFCh. 5 - Prob. 24TFCh. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQCh. 5 - Prob. 11MCQCh. 5 - Prob. 12MCQCh. 5 - Prob. 13MCQCh. 5 - Prob. 14MCQCh. 5 - Prob. 15MCQCh. 5 - 16. Which of the following is a common fraud...Ch. 5 - Prob. 17MCQCh. 5 - Cal Smith Jr. is the night manager at a local...
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Similar questions
- Which of the following is true in the case of forgery? Forgery does not include anything done by typing or word-processing. If a person signs his own check for $100 cash, knowing that there is only $50 in the account, and manages to cash it, the check is a forgery. The "forged instrument" must in some way be false, as in a false signature, a backdating of an existing instrument, or falsely modifying a corporate name. Forgery can be committed only by forging signatures. Alteration of an already existing document does not constitute forgery.arrow_forwardCurtis, a maintenance supervisor, submitted maintenance invoices from a phony repair company and received the checks at a post office box. This should have been prevented bya. Comparison of the company name to the approved vendor list by the check signer.b. Recognition of the excess maintenance costs by Curtis’s supervisor.c. Refusal by the purchasing department to approve the vendor.d. All of the above.arrow_forwardIndicate which statements are true and which are false. Separating the responsibility for a transaction between two or more individuals or departments will not help prevent someone from creating a fictitious invoice and paying the money to himself.arrow_forward
- Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Which account would be the best place to hide the fraud?a. Inventory.b. Wage expense.c. Consulting service expense.d. Property tax expense.arrow_forwardWhich of the following is NOT an example of an opportunity to commit fraud in the accounting information system? a. The need to sell confidential information from the database for cash to pay for his medical bills b. User names and passwords of most employees are stored in a shared Google document file c. The employee's discovery that passwords are not required to enter any modules in the accounting information system d. Supervisors are not required to approve transactions entered into by their staff in the accounting systemarrow_forwardIf an employee skims sales from a customer, which of the following will likely occur? a. The stolen payment if not material, will not be noticed by the organization. b. The receivable will become past due C. The customer will not be able to show proof that payment has been made. O d. The organization is likely to notice the theft of the payment immediately.arrow_forward
- Which of the following are external threats to revenue security? (select all that apply) A guest who walks out before the bill is presented An employee using voided sales to steal cash A quick-change artist A guest who forgot to payarrow_forwardTwo very common ways that employees commit fraud against their employers is the misstatement of reimbursable expense accounts and the misuse of office supplies for personal purposes. Although these schemes are usually not individually significant, their magnitude can be damaging if these practices are widespread. Please comment on these types of fraud (and other examples of employee fraud) and what internal controls they would put in place in an organization to curb this activity.arrow_forwardThe sales of $2,000 made to Shanaya has been posted to the Sara’s account by mistake. It happened because a customer account number was incorrectly entered into the system. Explain what internal control procedure(s) would provide protection against this threat in future?arrow_forward
- Which of the following control procedures mitigates the threat of duplicate payments? Select one: a. When an invoice is paid, the invoice and the entire voucher package should be canceled (for example marked “paid”) in a way that it cannot be submitted again. b. When evaluated receipt settlement (invoice-less system) is used, receiving reports need not be marked as paid as no invoices are generated. c. Photocopied invoices can be paid. d. Invoices should be approved for payment only when accompanied by a valid purchase order.arrow_forwardWhy do fraud examiners prefer documents over witnesses?arrow_forwardWhen an employee is in a position to penetrate and hide fraud, incompatible roles exist. False or Truearrow_forward
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