A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment. Required:a)What type of fraud is this? b)What controls can be implemented to prevent or detect the fraud?

A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment. Required:a)What type of fraud is this? b)What controls can be implemented to prevent or detect the fraud?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11CYBK

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A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment. Required:a) What type of fraud is this? b) What controls can be implemented to prevent or detect the fraud?
A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment.Required:a) What type of fraud is this? b) What controls can be implemented to prevent or detect the fraud?
A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment. which fraud is it and controls can be implemented to prevent or detect the fraud
A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment. What controls can be implemented to prevent or detect the fraud?
Question A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment.Required:a) What type of fraud is this?b) What controls can be implemented to prevent or detect the fraud?
.A city health inspector threatens to close down a restaurant for issuing a fake health notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently . Faced with a threat of economic loss the owner makes the payment.▪ what type of fraud is this and what controls can be implemented to prevent or detect fraud ??
1. FRAUD SCHEME HEALTH INSPECTOR A city health inspector threatens to close down a restau- rant by issuing a fake health violation notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently. Faced with a threat of economic loss, the owner makes the payment. Required What type of fraud is this, and what controls can be implemented to prevent or detect the fraud?
FRAUD SCHEME - HEALTH INSPECTORA city health inspector threatens to close down a restaurant by issuing afake health violation notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, hewill not be able to open for business and the publicity will drive away hiscustomers permanently. Faced with a threat of economic loss, the ownermakes the payment. RequiredWhat type of fraud is this, and what controls can be implemented toprevent or detect the fraud?
A council health inspector threatens to close down a restaurant by issuing a fake health violationnotice if the owner does not make a financial payment to him. If the restaurant owner does notcooperate, the restaurant cannot be opened for business and the negative publicity will drivecustomers away. Faced with the potential economic loss, the owner makes the payment.Required:a) What type of fraud is this? (4 marks, maximum 150 words)b) What controls can be implemented to prevent or detect the fraud? (6 marks, maximum 200words)
A council health inspector threatens to close down a restaurant by issuing a fake health violationnotice if the owner does not make a financial payment to him. If the restaurant owner does notcooperate, the restaurant cannot be opened for business and the negative publicity will drivecustomers away. Faced with the potential economic loss, the owner makes the payment.Required:a) What type of fraud is this? (4 marks, maximum 150 words)b) What controls can be implemented to prevent or detect the fraud?
A procurement agent for a large metropolitan building authority threatens to blacklist a building contractor if he does not make a financial payment to the agent. If the contractor does not cooperate, the contractor will be denied future work. Faced with a threat of economic loss, the contractor makes the payment.Required;Explain what type of fraud is this and what controls can be implemented to prevent or detect the fraud?
1. What does it mean to say that internal control has limitations and what are these limitations? 2. Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented? 3. What is petty cash and what purpose(s) does it serve? 4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash? 5. Prepare the necessary journal entries for each of the following: (a) On March 1, issued a check to establish a petty cash fund of $1,410 (b)…