Discuss the meaning of “red flags” of fraud. Include at least 5
“red flags” and explain what each indicates and what actions should
be taken by the organization. Include a biblical application to
support your recommendation(s).
Fraud Red Flags: Pretend that you are a IRS revenue agent - what
are some red flags that a specific tax transaction of tax return
might not pass the “smell” test? What can taxpayers do to help
protect themselves if they were chosen for an audit.
What
are some common red flags in financial statement analysis and what
steps should be taken in the event that we notice a red flag when
analyzing financial statements?
1) All of the following are “red flags” when analyzing the
quality of a company’s earnings except for:
a.
Lower gross profit margin
b.
Downward trend in administrative expenses
c.
Downward trend in revenue growth
d.
Lower research and development expenses (R&D)
2) What of the following data are important when analyzing a
company?
(1) Income statement
(2) Balance sheet
(3) Statement of cash flows
(4) Footnotes to the financial statements
a.
3 and 4
b.
1 and 2
c....
Identify the anomalies and/or red flags of fraud present
at the business. Could this fraud have been prevented or
deterred?
http://bartheft.com/post/2010/01/18/Exotic-Embezzling-Investigating-Off-Book-Fraud-Schemes.aspx#comment
What is the yield to maturity of a share of Six Flags B $1.88
preferred stock if the investor buys the stock at the following
market prices? Assume dividends are paid annually.
a. $32.00
b. $27.00
c. $18.00