Charles Hart, an accounts payable clerk, is an hourly employee. He never works a minute past 5 PM unless the overtime has been approved. Charles has recently found himself faced with some severe financial difficulties. He has been accessing the system from his home during the evening and setting up an embezzlement scheme. As his boss, what control technique(s) discussed in this chapter could you use to help detect this type of fraud?
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Charles Hart, an accounts payable clerk, is an hourly employee. He never works a minute past 5 PM unless the overtime has been approved. Charles has recently found himself faced with some severe financial difficulties. He has been accessing the system from his home during the evening and setting up an embezzlement scheme. As his boss, what control technique(s) discussed in this chapter could you use to help detect this type of fraud?
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- Charles Hart, an accounts payable clerk, is an hourly employee. He never works a minute past 5 P.M. unless the overtime has been approved. Charles has recently found himself faced with some severe financial difficulties. He has been accessing the system from his home during the evening and setting up an embezzlement scheme. As his boss, what control technique(s) discussed in lectures network risks and auditing could you use to help detect this type of fraud?Eric Wilson works at Lime Inc. He used Lime Inc.'s Sam's Club card to make personal purchases. Immediately before the company paid the bill for the Sam's Club charges each month, Eric placed his receipt in with the legitimate work-related receipts for Sam's Club. The accounts payable clerk rarely verified that the receipts were signed by authorized employees or that the purchases were actually for work-related items. What type of fraud is this? Forged maker Pay and return Personal purchases Pass-through 4Rohini works as an accountant with PQR Ltd. She embezzled $20,000 from the company bank account. She was caught in the annual audit of the company. She justified her action saying that her employer has not given any pay rise, so she had to take $20,000 from the account. Explain in your own words the internal control that may have failed in the above situation. Also explain which element of the fraud triangle Rohini is referring to justify her action.
- Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Please use at least 150 words to describe a control procedure that would have prevented or detected the fraud.Assume that brooke miles accounts payable clerk for west coast design inc.stole $48,350 by paying fictitious companies and cashed the checks at a local banks. Describe a control procedure that would have prevented or detected the fraud?Identify the fraud triangle risk factor (Opportunity, Pressure, or Rationalization) in each situation. 1. The business has no cameras or security devices at its warehouse. 2. A worker sees other employees regularly take inventory for personal use. 3. Payroll manager feels she is greatly underpaid. 4. No one matches the cash in the register to receipts when shifts end. 5. Managers are expected to grow business or be fired. 6. Managers are told to make extreme cuts in expenses. Opportunity Rationalization Pressure Opportunity Pressure Pressure
- Consider each of the following situations. Is there a potential problem? Which part of the fraud triangle is involved, if any? A. Susan is an accounts payable clerk. She sets up creditors in a financial database and pays invoices as they come in. Last year, she won employee of the year and is a valued employee. Through the grapevine, Susan's boss just learned that Susan's brother has a gambling problem. B. Now suppose that Susan from situation A is now secretary for the head of the marketing department. She keeps track of the vice president of marketing's schedule and handles the correspondence. C. Keith has been employed for 6 months as a teller at a community bank. All is going well, and his cash drawer has had shortages only twice (of less than P500). The shortages were traced and the problems corrected. D. At the company Memorial Day picnic and golf outing last week, Nancy noticed that June moved her ball to a better lie when she thought no one was looking. There…Soufian, a senior account executive is spending more money than he can afford. He is the authorized signatory on the company’s bank account and write cheques for himself, his accomplices and his creditors. Here, no one is reviewing the supporting documents or reconciling the bank statements. In addition, he has a complete control over the company’s computerized accounting system. Accordingly, because there was no oversight of his work, Soufian is brave enough to do absolutely nothing to conceal the irregularities on the records. An account clerk assists Soufian, but the clerk job is not requiring much attention, for example, only does filing and retrieving documents, answering phones, responding to emails and running errands. On the other hand, Soufian is occupying too much time with his work by not telling the account clerk about the accounting procedures or to give training on operating the accounting system. The truth is Soufian chooses not to delegate his tasks and he is appeared…Soufian, a senior account executive is spending more money than he can afford. He is the authorized signatory on the company’s bank account and write cheques for himself, his accomplices and his creditors. Here, no one is reviewing the supporting documents or reconciling the bank statements. In addition, he has a complete control over the company’s computerized accounting system. Accordingly, because there was no oversight of his work, Soufian is brave enough to do absolutely nothing to conceal the irregularities on the records. An account clerk assists Soufian, but the clerk job is not requiring much attention, for example, only does filing and retrieving documents, answering phones, responding to emails and running errands. On the other hand, Soufian is occupying too much time with his work by not telling the account clerk about the accounting procedures or to give training on operating the accounting system. The truth is Soufian chooses not to delegate his tasks and he is appeared…
- Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were neverreceived. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure thatwould have prevented or detected the fraud.Gladys is in charge of receiving all customer payments, recording the payments, and depositing them at the bank. What element of the fraud triangle is best described here? Group of answer choices Opportunity Rationalization Incentive/Pressure Attribution Gladys has large amounts of student loan debt and a crippling gambling habit. She works part-time job in another city. What element of the fraud triangle is best described here? Group of answer choices Opportunity Fraudy fraud Pressure/incentive RationalizationWhat internal control or procedure(s) would provide protection against the following threats? An employee makes a credit sale to a customer who is already four months behind in making payments on his account. An employee writes off a customer’s accounts receivable balance as uncollectible to conceal the theft of subsequent cash payments from that customer Customers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered. The mailroom clerk steals checks and then endorses them for deposit into the clerk’s personal bank account Goods are shipped to a customer, but that customer is not billed.