A Ponzi scheme
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
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 7RQSC
Related questions
Question
A Ponzi scheme is an investment fraud banned in most countries and operators are severely punished.
(a) Explain, with an example, how a typical Ponzi scheme function.
(b) Compare and describe a typical Ponzi scheme organisation’s balance sheet and revenue in
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