College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 6, Problem 1A
To determine
Explain the way in which firms specialized in forensic accounting would help prevent fraud.
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You are a highly experienced CA financial accountant for a law firm, responsible for all aspects of the financial reporting, from preparing budget reports, reconciling accounts, through preparing annual financial reports.
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Forensic Accounting: Unraveling Financial Deception
Forensic accounting stands as a specialized field within the broader domain of accounting,
with its primary focus on the detection and prevention of financial fraud. In a world where
financial crimes are increasingly sophisticated, forensic accountants play a crucial role in
unraveling complex financial transactions and uncovering deceptive practices. Their expertise
extends beyond traditional accounting methods, encompassing investigative techniques,
legal knowledge, and a deep understanding of financial systems.
Fraud Detection: Unmasking Deceptive Practices
One of the primary objectives of forensic accounting is to identify instances of fraud within an
organization or financial system. Forensic accountants employ a variety of techniques,
including data analysis, financial statement scrutiny, and interviews, to uncover irregularities
or anomalies that may indicate fraudulent activities. They delve into transactions, scrutinize…
You are a forensic accountant for a public accounting firm whose client hired your team to perform a fraud investigation of the accounts payable processes. As part of your fraud testing, you have acquired vendor data including bank accounts to which payments are sent and employee data including bank accounts for direct deposit of paychecks. You need to compare the main vendor table to the
main employee table to search for potential fictitious vendors. Analyze the fields in the two tables on the next page, looking for identical or similar fields. Based on what you find, identify three red flags for accounts payable fraud. Provide the record numbers from
the tables in your answer.
Vendor record # Employee Record#
________ ___________
________ ____________
_________ ____________
Chapter 6 Solutions
College Accounting (Book Only): A Career Approach
Ch. 6 - Prob. 1QYCh. 6 - Prob. 2QYCh. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QYCh. 6 - Prob. 6QYCh. 6 - Prob. 7QYCh. 6 - Prob. 8QYCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQ
Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - Prob. 8DQCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - a. Describe the entries that have been posted to...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 1ACh. 6 - Prob. 2ACh. 6 - You work as a cashier for a service business. Some...
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- You are a forensic accountant for a public accounting firm whose client hired your team to perform a fraud investigation of the accounts payable processes. As part of your fraud testing, you have acquired vendor data including bank accounts to which payments are sent and employee data including bank accounts for direct deposit of paychecks. You need to compare the main vendor table to the main employee table to search for potential fictitious vendors. Analyze the fields in the two tables on the next page, looking for identical or similar fields. Based on what you find, identify three red flags for accounts payable fraud. Provide the record numbers from the tables in your answer. Vendor record # Employee Record# ________ ___________ ________ ____________ _________ ____________arrow_forwardRead the following information and then answer questions a & b below: Assume you are an internal auditor for a large, multinational, manufacturing organization with a division in Mexico. One of your responsibilities is to investigate allegations made on the company’s fraud hotline. When you arrive at work one morning you learn an anonymous tip was left on the hotline that alleges fraud involving the division manager. “Pat’s significant other is a fraudulent vendor,” was the anonymous tip left on your company’s fraud hotline. Pat is a division manager at your company. “Wow. I can’t believe this guy is so blatant,” you are thinking as you review some accounts payable invoices while following up on this anonymous tip. A quick search of the AP file reveals a total of three invoices like the one, all for identical amounts but on different dates. The division manager, Pat, has the authority to approve payment of invoices for less than $10,000. It is obvious to you that the manager has…arrow_forwardPlease help ASAP. Clearly define the answers for the following questions. (use at least 10 sentences for each , thanks) Question 1: Explain how a detection of fraud may not necessarily mean that fraud exists. Question 2: Who are District Attorneys and what is their function within the court system?Question 3: For paper or any perishable documents, the forensic accountant should follow what basic rules?arrow_forward
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