What Are The Effectiveness Of Sport's Billing Procedures In Relation To Accounts Receivable

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

The entries used to record the disposition when the receivables are sold to a factor often detail the cash received plus the service charge. The company can then balance their receivables account. When a credit card company records a credit card

This shows that invoices were made twice for large amounts possibly by fraudsters that have approved the transactions. It’s very clear that the invoices were recorded this way.

First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.

According to the accounts receivable report, a major client of Smackey is Chicago’s retail chain Pub Stores. They alone represent 31% of overall sales and revenue of Smackey Dog Foods. Pub Stores is a primary customer who usually makes payment within 30 days. Extract from accounts receivable aging, current receivable under 30 days have only 38% of the total amount. If Pub store contributes 31% to this data, that means other good customers who makes their payments on time to Smackey beside Pub store only accounts for 7%.

According to the statute of frauds, what is one component that is consistently required for

1. Fraudulent financial reporting – reporting false financial performance and overstating the company’s earnings and falsifying the level of liabilities to attract investor’s contributions.

For purposes of the Statement, fraud is an intentional act that results in a material

1) Anna Thomas committed a fraudulent act by making personal charges and cash withdrawals on Rusher Automotive’s credit card. The accounting profession believes there are three conditions necessary for fraudulent behavior. (See Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit. For additional explanation, you may want to review Buckhoff [2001].)

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

Fraud is defined as a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses through deception or concealment. And Occupational Fraud as defined by the ACFE is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Traditional fraud triangle theory by Donald Cressey explains that propensity of fraud occurring in an organization lies on three critical elements which are Pressure, Opportunity, and Rationalization.

11. Accounts receivable turnover and days sales in accounts receivable for the last three years:

The historical backdrop of offenses of fraud and theft can be viewed as containing three fundamental waves. The main happened in England in the eighteenth century and focused on the offense of acquiring property by falsifications. This was portrayed by the administrative augmentation of the custom-based law offense of robbery, and a resulting and proceeded with sanctioning of particular offenses to manage singular issues. The second wave took after the order of the Theft Act 1968 (UK) c 60 ('Theft Act') and denoted a move far from considering property to be the subject of the offense. In the Theft Act a consider endeavor was made to make general misrepresentation offenses. Inside the Criminal Law Review Committee ('CLRC'), which defined the

Fraud is defined as an intentional act performed by an individual with the aim of gaining some benefits by the perpetrator (Kristin 4). The World Bank Group (2016) describes fraud as a practice involving an action or omission such as a misrepresentation through reckless, knowing misleads or with attempt to mislead another party so as to gain financial or other type of benefit, or with the intention of avoiding a responsibility. Fraud is any trick used by one party for the purpose of gaining through a dishonest advantage over another individual. An individual commits fraud with the intention of inducing another party some form of loss or inflict injury. Ashworth and Horder (368) state that fraud is a form of a dishonesty offense because its intention is to steal, deceive, deprive, take a conveyance without consent and handling of stolen goods as well as money laundering. Any type of fraud is a crime and questionable under the law. In fact, fraud as a crime calls for severe penalties such as prosecution and punishment like that of a murder. There should be no limitations as to why a fraudster should not be convicted with a criminal offense. There are different types of fraud committed through dishonesty means. Government assistance fraud is a type of crime that is common in organizations owned by the state (Bohm & Haley, 2014). Based on the level of offense committed through government assistance fraud, it is even recommended that people committing such a crime get a higher