Auditing - Fraud through Misappropriation of Assets or Fraudulent financial reporting State one type of fraud...

Auditing - Fraud through Misappropriation of Assets or Fraudulent financial reporting

State one type of fraud that can occur for the accuracy objective of provision for warranty (liability account)

State one type of fraud that can occur for the sales occurrence objective of sales revenue (revenue account)

Expert Solution

1.The provision for warranty fraud can occur when there are fictitious customers and the warranty for the sales incurred is booked. In this case, a sale under a third party name is booked with a duplicate invoice and a provision is created against the same by the employee propagating a fraud. This will increase the provisions for warranty and a fake warranty claim is booked against the sale with the benefits of the warranty being transferred to the fraudster.

2. The sales revenue fraud can occur in the form of booking of potential revenue without the actual criterions of revenue recognition standards being met. The revenues are inflated often by the management in order to have a better image of the financial statements. This is usually done by recognizing the revenue in full when the contract is spread over a couple of years. Ideally the revenue must be amortized over the length of the contract but in case of fraudulent financial reporting the revenue is recognized upfront.

ekkarill92 answered 1 year ago

. Discuss the auditor’s responsibility for detecting fraud, including fraudulent financial reporting and misappropriation of assets....

. Discuss the auditor’s responsibility for detecting fraud, including fraudulent financial reporting and misappropriation of assets. Is there any sign that should alert the auditor to potential fraud?

Discussion topic 1: Noncash Asset Misappropriation Select a type of noncash asset misappropriation fraud scheme and...

Discussion topic 1: Noncash Asset Misappropriation Select a type of noncash asset misappropriation fraud scheme and explain how it might occur. Discuss several techniques to detect this type of fraud and at least one internal control that would reduce this fraud risk. Site reference please

"Fraudulent Financial Reporting" As economic crimes increase globally, accounting fraud is consistently in the top three...

"Fraudulent Financial Reporting" As economic crimes increase globally, accounting fraud is consistently in the top three areas according to a global survey reflected in the chapter. Use the Internet or Strayer Library to research a company sanctioned for financial accounting fraud in the past five (5) years. Give your opinion on the situational pressures that caused perpetrators to commit the fraudulent reporting. Assess the opportunities for fraudulent financial reporting and discuss ways the company you researched could eliminate fraudulent reporting

Write a 350- to 700-word paper comparing the impacts of fraudulent financial statements, asset misappropriation and...

Write a 350- to 700-word paper comparing the impacts of fraudulent financial statements, asset misappropriation and corruption on the organization. Include the following: How does each type of fraud impact the organization? Consider the relative frequency. Please help. I have been sick all week and having trouble finding the energy to get all my course work done. Also, I need it to include at least one reference.

A study on fraudulent financial reporting by one of the most popular internal controls frame provider,...

A study on fraudulent financial reporting by one of the most popular internal controls frame provider, notes that there are many ways in which long-lived assets can be fraudulently overstated, including: a. Assets fictitious, on the books (WorldCom) b. Incomplete and Improper depreciation (Waste Management) c. Failure to record important of assets, especially goodwill (Sun Microsystems) d. Expired or worthless assets left on a company’s books (Millacron) e. Overvalued assets upon acquisition, especially in the purchase of a company (WorldCom)...

1. Create a scenario in which a company conceals financial fraud from the auditing firm through...

1. Create a scenario in which a company conceals financial fraud from the auditing firm through the use of information technology. Next, suggest at least one (1) way in which an auditing firm can minimize its exposure to this risk. 2. Select a balance sheet account or income statement account, and discuss the type of audit procedure that would produce the most reliable evidence for that account balance.

Explain recording, reporting, and auditing requirements for local, state, and federal governments regarding financial accounting

Because all fraud involves some form of financial misstatement, how is fraudulent statement fraud different?

Present a recent example of fraud with non-cash assets or fraudulent reimbursement. Be sure to answer...

Present a recent example of fraud with non-cash assets or fraudulent reimbursement. Be sure to answer the following questions in your paper: Who committed the fraud? What was taken and what was its value? When was the fraud committed? Where was the fraud committed? How was it stolen? Why did the perpetrator commit the crime?

The Treadway Commission was concerned about the fraudulent financial reporting that was occurring in the United...

The Treadway Commission was concerned about the fraudulent financial reporting that was occurring in the United States. Yet, numerous significant instances of fraudulent financial reporting occurred after publication of the COSO report. Question: In the context of the five components of internal control cited by the COSO report, discuss what appears to have gone wrong in own words.(Please Note: Position and exceptions, if any, are clearly stated. Organization of the argument is completely and clearly outlined and implemented. Research selected...

Question