Identify the correct answer with respect to fraud.

Question

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Answer 1

Question

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

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Summary: You will investigate a case of asset theft involving several fraudsters for this assignment. The case offers a chance to assess an organization's corporate governance, fraud prevention, and risk factors. Get ready: Moha Computer Services Limited Links to an external website: Finish the media activity. The scenario you need to finish the assignment is provided by this media activity. Directions: Make a four to five-page paper that covers the following topics. Management must be questioned by an auditor regarding the efficacy of internal controls and the potential for fraud. A number of warning signs point to the potential for fraud in this instance. List at least three red flags (risk factors for fraud) that apply to the Moha case. Sort them into three groups: opportunities, pressures/incentives, and (ethical) attitudes/justifications. Determine which people and organizations were impacted by Moha Computer Services Limited's enormous scam. Describe the fraud's financial and…

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Answer 2

Question

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

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Answer 3

Question

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

Answer 6

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.

Answer 7

Chapter 5, Problem 1CQ

To determine

Identify the correct answer with respect to fraud.

Answer 8

Expert Solution & Answer

Explanation of Solution

Identify the correct answer with respect to fraud.

Justification for correct answer:

a.

Lapping is a fraudulent practice that is done by altering the accounts receivables of a company to conceal a stolen receivables payment. This practice is usually successful in small companies where one single individual may handle cash receipts and customer billing. Therefore, it is a correct answer.

Justification for incorrect answer:

b.

Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.

c.

A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.

d.

Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.