current assets section of the balance sheet

The following scenarios are taken from actual fraud cases. For each scenario, categorize as primarily indicating (A) An incentive to commit fraud (B) An opportunity to commit fraud or (C) a rationalization for committing fraud. State your reason for your answer in each scenario. 1. Top management of the company closely guards internal financial information, to the extent that even some employees on a "need to know basis" are denied full access.

The information below was taken from the bank transfer schedule prepared during the audit of Fox Co.'s financial statements for the year ended December 31, 2005. Assume all checks are dated and issued on December 30, 2005. Check No. 101 202 303 404 Bank Accounts From National Federal County State Federal American Dec. 31 State Republic Jan. 2 To Disbursement Date Per Books Per Bank Dec. 30 Jan. 4 Jan. 2 Jan. 3 Jan. 3 Jan. 2 Receipt Date Per Books Dec. 30 Dec. 30 Jan. 2 Jan. 2 Per Bank Jan. 3 Dec. 31 Which of the following checks illustrate deposits/transfers in transit at December 31, 2005? Jan. 2 Dec. 31

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