There are two common causes of business and accounting fraud:• A failure of individual character• A culture of greed or ethical indifference within an organizationWrite a brief memo describing how these two factors could lead to accountingfraud.

1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Labilities and Equit Trade accounts payable Long-term debt Equity Assets Accounts receivable $ 200 Inventory 400 Plant 800 $1,400 $ 200 600 600 $1,400 It earns 10 percent on sales (after taxes) and pays no dividends. a. Determine the balance sheet entries for sales of $1,500 using the per- cent of sales method of forecasting. b. Will the firm need external financing to grow to sales of $1,500? e. Construct the new balance sheet and use newly issued long-term br to cover any financial deficiency, EXINC

1. How do organizations create a culture of honesty, openness, and assistance? 2. What are different ways in which companies can eliminate opportunities for fraud? 3. What is the purpose of adopting a code of ethics throughout a company? 4. Why are good internal controls important? 5. In what ways can organizations discourage collusive fraud?

Which of the following factors creates an opportunity for fraud to be committed in an organization? a. Management demands financial success. b. Poor internal control. c. Commitments tied to debt covenants. d. Management is aggressive in its application of accounting rules.

How can fraud be prevented in the making use of accounting information systems? How do ethics and internal control play key roles in reporting misstated financial statements? (Accounting Information System Tenth Edition by James Hall chapter 3)

Identify at least four different areas where there could be potential accounting fraud in a company. Make sure you elaborate on your reasoning for why accounting fraud could occur as well as the financial implications on the organization.

Explain the difference between computer fraud and general fraud. Explain both categories of fraud in relation to accounting information system.

Define the following terms below:  a. Financial crime b. Fraud triangle c. Money laundering d. Accounting Fraud e. Asset misappropriation f. Consumer fraud g. Data theft h. Tax fraud NB: Answer questions a-h

Fraud consists of some deceitful practice or willful device, resorted to with intent to deprive another of his right.  Fraud is generally categorized as follows: Asset Misappropriation a) May include employee theft – typically cash, physical assets (computers), or intellectual property. b) May encompass a variety of wrongful acts, such as, among others, bribes or kickbacks. c) Deliberate misrepresentation of the financial statements.

Collusion is an intentional act of two or more employees to accomplish theft of company assets. Which control activity is designed to make fraud less likely because it would require collusion among employees?    A. Adequate documents and records  B. Clearly defined authority and responsibility  C. Safeguards over assets and records  D. Segregation of duties