College Accounting (Book Only): A Career Approach
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
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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. The CEO has suspected that the procurement manager is appropriating funds from the firm's bank accounts. He has asked you to assist him to reviewing the financial records for the firm and identify any fraudulent transactions. The procurement manager is a close friend of yours. What sort of forensic accounting service are you providing? Should you accept the engagement to assist the CEO? What sort of evidence would you collect and review? If required to prepare a report for court proceedings, do you think your evidence will be accepted? Why?
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# ________               ___________ ________             ____________ _________            ____________
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