You are a Fraud Investigator and you are asked to look into a small sole proprietorship/S...

You are a Fraud Investigator and you are asked to look into a small sole proprietorship/S Corp company. You discover that the owner routinely takes money out of the till and they are not using GAAP as their accounting basis.

1. What do you do?

2. What accounting basis could they be using instead?

Expert Solution

ekkarill92 answered 1 year ago

Discuss ways that you as an auditor or fraud investigator might look for and hopefully discover...

Discuss ways that you as an auditor or fraud investigator might look for and hopefully discover manipulation of expenses relating to ammortization of tangible and intagible assets.

James Jones is the owner of a small retail business operated as a sole proprietorship. During...

James Jones is the owner of a small retail business operated as a sole proprietorship. During 2018, his business recorded the following items of income and expense. Revenue from Inventory Sales $147,000 Cost of Goods Sold 33,500 Business License Tax 2,400 Rent on Retail Space 42,000 Supplies 15,000 Wages Paid to Employees 22,000 Payroll Taxes 1,700 Utilities 3,600 A.) Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2018 Form 1040. You...

Tia a student of the Small Business Management Group of 2019 established a sole proprietorship, selling...

Tia a student of the Small Business Management Group of 2019 established a sole proprietorship, selling car parts for the business. The business is at the end of the first year of operation. As a sole proprietorship she is not required to prepare a formal financial statement however in keeping with good business practices she intends to prepare these statements for personal benefits as a business owner. The following data were extracted from the books of Tia as at March...

Financing of the business Sole proprietorship: Corporation:

Why do small business set up as sole proprietorship or partnership when filing for bankrupty ?...

Why do small business set up as sole proprietorship or partnership when filing for bankrupty ? How does it help them?

Is it ethical for a fraud investigator not to include something in a report that she...

Is it ethical for a fraud investigator not to include something in a report that she believes to be true and that would help her client but would increase the chances of the perpetrator filing a lawsuit against her? Why or why not?

5) Which of the following is a STRENGTH of the sole proprietorship form of organization? You...

5) Which of the following is a STRENGTH of the sole proprietorship form of organization? You are identifying a strength, not a weakness. Profits are subject to one level of taxation. Owner faces LIMITED liability. Shares of stock make ownership easily transferable. Profits are subject to two levels of taxation. 6) Which of the following is a WEAKNESS of the corporate form of organization? You are identifying a weakness, not a strength. Profits are subject to one level of taxation....

What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole...

What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole proprietorships have limited liability. B) Corporations are the only profitable firms. C) Corporation shareholders elect the managers of the firm. D) Sole proprietorships offer stock.

1 Why is it that small businesses often form initially as sole proprietorships, if the corporate form has so many advantages over the sole proprietorship?

1 Why is it that small businesses often form initially as sole proprietorships, if the corporate form has so many advantages over the sole proprietorship?2.In developing the cash flow statement, why is depreciation added back to operating cash flows and to fixed assets?3.What are the assumptions of the sustainable growth rate? What does sustainable growth rate mean?4.If Corsair, Inc. has an ROE of 17.7 percent and a payout ratio of 18 percent, what is its sustainable growth rate?

Compare and contrast both tax and non-tax issues facing a sole proprietorship vs a an S-corp.

Question