Question

In: Accounting

QUESTION 5 The majority of conflicts of interest frauds are involved in purchasing or sales schemes....

QUESTION 5

The majority of conflicts of interest frauds are involved in purchasing or sales schemes.

True

False

QUESTION 6

The Foreign Corrupt Practices Act is a state law in Massachusetts that prohibits conflicts of interest.

True

False

QUESTION 7

The Foreign Corrupt Practices Act requires publicly traded corporations to keep accurate books and records and adopt a system of internal controls.

True

False

QUESTION 8

Under the Foreign Corrupt Practices Act, the Congress can seek civil penalties of up to $5,000,000 for corporate entities and up to $1,000,000 for individuals who violate the law.

True

False

QUESTION 9

Collusion is a secret agreement between two or more people for a fraudulent, illegal, or deceitful purpose such as subverting the internal controls of their employer.

True

False

QUESTION 10

A slush fund is a noncompany account into which company money is deposited and from which bribes (illegally) may be paid.

True

False

Solutions

Expert Solution

5) True, the majority of conflict schemes fit into two categories purchases scheme and sales schemes. Most conflicts of interest arise when a victim company unwittingly buys something at a high price from a company in which one of its employees has a hidden interest, or unwittingly sells at a low price to a company in which one of its employees has a hidden interest.

6) False, The Foreign Corrupt Practices Act prohibits bribery is a U.S. federal law that addresses accounting transparency requirements and another concerning bribery of foreign officials. It does not prohibit conflicts of interest.

7) True, the accounting provisions of the Foreign Corrupt Practices Act requires publicly traded corporations to make and keep accurate books and records and to devise and maintain an adequate system of internal accounting controls.

8) False, the congress can seek civil panalties of upto $2 million (i.e. $2,000,000) for corporations or other business entities and upto $100,000 for individuals who violate the law.

9) True, Collusion is an improper secret agreement between two or more people, to defraud or deprive others of their property or rightful share, or for any other forbidden or illegal purpose.

10) True, slush fund is a non company account into which company money has been fraudalently diverted and from which bribes can be paid.


Related Solutions

10-32: (Objectives 10-5, 10-6) The following are various potential frauds in the sales and collection cycle:...
10-32: (Objectives 10-5, 10-6) The following are various potential frauds in the sales and collection cycle: The company engaged in channel stuffing by shipping goods to customers that had not been ordered. The allowance for doubtful accounts was understated because the company altered the aging of accounts receivable to reduce the number of days outstanding for delinquent receivables. The accounts receivable clerk stole checks received in the mail and deposited them in an account that he controlled. He issued credit...
5. Interest, inflation, and purchasing power Suppose Neha is a cinephile and buys only movie tickets....
5. Interest, inflation, and purchasing power Suppose Neha is a cinephile and buys only movie tickets. Neha deposits $2,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $20.00. Initially, the purchasing power of Neha's $2,000 deposit is movie tickets. For each of the annual inflation rates given in the following table,...
Question 5: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are...
Question 5: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below. They have a 50-50 target capital structure of debt/equity. Their stated bank loan rate is 6% and rs = 12%. WACC is 7.8%. If the cost of capital for this project is determined to be equal to their WACC (reference question #5) instead, what is the...
Question 2 Secondly, critically discuss FIVE (5) CONTEMPORY CASE LAWS related to online purchasing at the...
Question 2 Secondly, critically discuss FIVE (5) CONTEMPORY CASE LAWS related to online purchasing at the International Level, focusing on the judgements handed down in those cases and most importantly how do you think that will impact on the Caribbean online purchaser. 20 marks
Question 5 (10 Marks) At the same time as the RBA is reducing interest rates the...
Question 5 At the same time as the RBA is reducing interest rates the Australian Government will be running a budget deficit in 2020. How this will affect aggregate demand? A diagram would assist your answer here and attract further marks How will the size of the marginal propensity to consume affect the size of the multiplier and how will this impact on this fiscal policy initiative? If consumers decide to increase their rate of savings due to increasing uncertainty...
This question has 5 parts. a. Assume that currently the nominal interest rate is 4% and...
This question has 5 parts. a. Assume that currently the nominal interest rate is 4% and the price of your favorite good today is P = $100 per unit. You lend $10,000 for a year to a friend. If instead you spent the money today, you would be able to buy 100 units of your favorite good. b. Next year, your friend will pay you back 10,400 dollars. c. Next year, the price of your favorite good increases by 1...
QUESTION 5 In calculation of time value of money, the interest rate has a _________ relationship...
QUESTION 5 In calculation of time value of money, the interest rate has a _________ relationship to the present value and _________ relationship to the future value of an investment.              positive; negative             negative; negative            negative; positive           positive; positive             None of the options specified here 10 points   QUESTION 6 The present value of a single future sum:              is generally larger than the future sum.             depends upon the number of discount periods.            increases as...
QUESTION 5 Sales between affiliated companies will be recorded in a normal manner on the books...
QUESTION 5 Sales between affiliated companies will be recorded in a normal manner on the books of the separate companies only on the books of the parent company only on the books of the subsidiary company will not be recorded by either affiliated company 5 points    QUESTION 6 When affiliated companies sell on credit the trade balances, intercompany receivables and payables appear only on the books of the parent in consolidated statements appear only on the books of the...
Question 5. Explain how vaccinations protect against diseases. Specifically, discuss the immune cells involved in providing...
Question 5. Explain how vaccinations protect against diseases. Specifically, discuss the immune cells involved in providing immunity. Question 6. Explain why some vaccinations need a “booster shot”. Question 7: The microbiome contains an ecosystem of microorganisms/foreign antigens. Why doesn’t the body attack the gut?
Question 11. Companies Heidee and Leaudy have the same sales, tax rate, interest rate on their...
Question 11. Companies Heidee and Leaudy have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power. Both companies have positive net incomes. Company Heidee has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? Rationalize your selection. a. Company Heidee has more net income. b. Company Heidee pays less in taxes. c. Company Heidee has a lower equity multiplier. d. Company Heidee has a higher...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT