You are a CPA who has recently transferred from the auditing and assurance department to the forensic accounting department of a public accounting firm where you have worked for two years. You receive a call from Sterling Preston, a senior manager in your group, who tells you that the next morning the two of you will drive to Suburbia, Illinois for a meeting. You confirm that you will be in the office at 7:00 a.m. to ride with Sterling to the meeting.

The next morning, while driving, Sterling explains what might happen in the meeting:

“WrecksAll Drugs has recently requested proposals from firms for audit services. Although our firm is not interested in the audit, the owner has also expressed concern about potential fraud at the company. We are headed to the law offices of an attorney for WrecksAll Drugs, which is a group of privately owned drug stores in Suburbia. Have you ever been there? Me either, but it’s a big town. We have a lead on a possible embezzlement. One of our audit partners spoke to their attorney, who may need an investigation at the Company. The owner, Ben Broughton, found some funny business in the deposits. The Director of Accounting, Conrad Scaglia, has been put on leave. They are going to explain what is going on to see if we can help. Just listen and take some notes, and of course, ask clarifying questions as needed.”

You and Sterling arrive and are ushered into a conference room at the law firm. Present are Ben, his lawyer, you, and the senior manager. The lawyer does most of the talking:

“WrecksAll operates 3 retail stores across the city, and competes with stores of two national chains, and also with several retail drug stores located on site at area hospitals. The Company has developed a successful niche in the marketplace by locating its stores near otherwise underserved residential neighborhoods, and by providing personalized service, generating loyalty form a core base of its customers. Much of its core customer base tends to be elderly and below median income for Suburbia.”

Ben, the owner, interjects:

“One service we provide to qualified customers is that we fill prescriptions on credit for customers enrolled in Medicare, Medicaid, or private medical insurance plans. We file claims for customers for drug purchases, and the insurance reimbursement checks are received directly by us from health insurance programs, in payment of customer credit accounts. We don’t make too many mistakes. I am the only person who can write off a customer’s account. Of course, we also accept payment by cash, check, or major credit card for all customers.”

The attorney continues:

“Ben has found suspicious activity in the deposits. Every shift, a deposit slip is completed by each cashier and deposit amounts (cash, checks and credit card batches) are removed from the cashier’s register and are keyed into the point of sale register by the cashier as a register withdrawal for deposit. As a matter of procedure, bank deposit slip totals can be compared to the register reports for each shift and each cashier. Deposit slip totals nearly always agree to the register report totals. However, often throughout each week, certain deposits contain less cash than indicated on the register report. By an equal amount, these same deposits contain more value in checks than indicated on the register report.”

After the conclusion of the meeting at the attorney’s office, you will visit WrecksAll’s offices, which are located in the rear of the retail space for WrecksAll store #2. Sterling will leave you at WrecksAll offices for some initial fact finding while he attends a sales call and lunch with another law firm in Suburbia, and then he will rejoin you in the afternoon at WrecksAll.

You and Sterling are left alone in the conference room and you discuss the following questions. Provide your written answers to these questions below, and prepare to discuss them in class. 1) Form one or more initial hypotheses about what could be happening to explain why deposits balance with the register

1 While this case is based on a collection of experiences from professionals in practice, all names, facts, documents and data provided in this case are fictional representations. reports in total, but cash deposited is less than amounts reflected on the register report and checks deposited are greater than the amount reflected on the register report.

2) For each of the hypotheses stated in #1) above, label which ones are fraud hypotheses and which hypotheses, if true, would be non-fraud explanations?

3) List what information and documents you would like to receive in order to begin investigation of this matter?

4) The owner suspects that Conrad, the Director of Accounting, has manipulated the deposits. Conrad is on leave, pending conclusion of the investigation. Would you like to request that Conrad come in for an interview with you today? Why, or why not?

5) Availability of WrecksAll staff and your time is currently limited. After some initial fact finding today, your firm will propose a scope of services to WrecksAll and its attorney and ask to execute an engagement letter to complete the investigation. Review the WrecksAll organization chart that follows. The organization chart indicates the titles for each position, which can indicate the nature of job responsibilities for each position. Each position also is connected by a line to a position above it, indicating the supervisor for each position in the chain of command. Some of the boxes near the bottom of the organization chart represent numerous positions of identical responsibility, such as cashier. Document and select three individuals from the organization chart you would like to interview today in order to help you better plan the engagement and revise your current hypotheses about the cause of differences between deposits and company register report details. Which three positions would you ask to interview today? Explain why you have selected each of these individuals.

A researcher with the Department of Education followed a cohort of students who graduated from high school in a certain​ year, monitoring the progress the students made toward completing a​ bachelor's degree. One aspect of his research was to determine whether students who first attended community college took longer to attain a​ bachelor's degree than those who immediately attended and remained at a​ 4-year institution. The data in the table attached below summarize the results of his study. Complete parts​ a) through​ e) below.

Community College Transfer:

n:268

Sample mean time to​ graduate, in years 5.49

Sample standard deviation time to​ graduate, in years 1.144

No Transfer

n 1175

Sample mean time to​ graduate, in years 4.51

Sample standard deviation time to​ graduate, in years 1.013

a) What is the response variable in this​ study? What is the explanatory​ variable?

A.The response variable is the use of community college or not. The explanatory variable is the time to graduate.

B.The response variable is the time to graduate. The explanatory variable is the use of community college or not.

C.The response variable is the time to graduate. The explanatory variable is the number of students.

D.The response variable is the number of students. The explanatory variable is the time to graduate.

​b) Explain why this study can be analyzed using inference of two sample means. Determine what qualifications are met to perform the hypothesis test about the difference between two means. Select all that apply.

A.The sample sizes are large​ (both greater than or equal to​ 30).

B.The population is given to be normally distributed.

C. The samples are independent.

D.The sample sizes are not more than​ 5% of the population.

E.The samples can be reasonably assumed to be random.

​c) Does the evidence suggest that community college transfer students take longer to attain a​ bachelor's degree? Use an

alpha equals 0.01α=0.01 level of significance. Perform a hypothesis test. Determine the null and alternative hypotheses.

A.Upper H 0H0​: mu Subscript community college Baseline equals mu Subscript no transferμcommunity college=μno transfer​,

Upper H 1H1​:mu Subscript community college Baseline greater than mu Subscript no transferμcommunity college>μno transfer

B.Upper H 0H0​: mu Subscript community college Baseline greater than mu Subscript no transferμcommunity college>μno transfer​,

Upper H 1H1​: mu Subscript community college Baseline less than mu Subscript no transferμcommunity college<μno transfer

C.Upper H 0H0​: mu Subscript community college Baseline equals mu Subscript no transferμcommunity college=μno transfer​,

Upper H 1H1​: mu Subscript community college Baseline less than mu Subscript no transferμcommunity college<μno transfer

D. Upper H 0H0​:mu Subscript community college Baseline less than mu Subscript no transferμcommunity college<μno transfer​,

Upper H 1H1​:mu Subscript community college Baseline greater than mu Subscript no transferμcommunity college>μno transfer

Babies who use their caregiver as a secure base from which to explore the environment and who return to the comfort of their caregivers when distressed are best classified as _________ babies.

Terms and Definitions

A corporation is a legal entity, distinct and separate from the individuals who create and operate it. As a legal entity, it can sell shares of ownership, called stock. In many cases, a dollar amount may be assigned to each share of stock; this is called the ????? of the shares. When only one class of stock is issued, it is called ?????? . A corporation may issue more than one class of stock. In this case, the second class of stock will have various preference rights, such as a preference to dividends, and is called ?????? .

Understanding the Business Transaction

Each share of common stock has equal rights. The maximum number of shares of stock that a corporation can issue (as stated in its charter) is the number of shares ???? . The number of shares previously sold to shareholders is the number of shares ?????, while the number of shares remaining in the hands of stockholders is the number of shares ???? .

Stock is often issued by a corporation at a price other than its par value. If stock is issued (sold) for a price that is above its par value, the stock has been sold at a ??? . If stock is issued (sold) for a price that is less than its par value, the stock has been sold at a ????? .

On January 6, Dee-Light Corporation issued for cash 17,400 shares of $2 par value common stock at $31 per share. On May 10, Dee-Light issued at par 4,900 shares of preferred 4% stock, $20 par for cash. On June 22, Dee-Light issued for cash 25,650 shares of 4%, $25 par value preferred stock at $28 per share. Determine the amount of cash that Dee-Light will receive from each of these stock issuances.

Recording in the Accounting System

Journalize the entry to record the January 6 issuance of common stock. If an amount box does not require an entry, leave it blank or enter "0".

Journalize the entry to record the May 10 issuance of preferred stock.

Journalize the entry to record the June 22 issuance of preferred stock. If an amount box does not require an entry, leave it blank or enter "0".

from 5 NSG diagnosis for pt . with hemorrhagic CVA who is in deep coma

You read in this chapter a quote from an ethnographer in the McKinney housing study who learned that a house resident was talking seriously about cutting himself. If you were the ethnographer, would you have immediately informed house staff about this? Would you have told anyone? What is the resident asked you not to tell anyone? In what circumstances would you feel it is ethical to take action to prevent the likelihood of a subject harming him or herself or others?

Who gains from the action for Kinder Morgan in El Paso, in what ways, and for what reasons?

The parents who vaccinate their children get only a portion of the benefit from this vaccination. Parents of other children also gain because their kids are less likely to catch the disease when so many children are immune. Use marginal benefit and marginal cost curves to explain a decision by parents when they consider whether to have their children vaccinated against chicken pox. Be sure to have a curve for the parents’ marginal benefit from having their own children vaccinated as well as society’s marginal benefit.

The latest departure from the BurgerSupreme executive team was James Pickle who was in charge of purchasing. Mr. Pickle had to leave because he broke the law and took a bribe to give the contract to Radioactive Lettuce a provider of lettuce, pickles, and other accoutrements. Mr. Pickle in explaining why he had taken a bribe said that  his action had been good for BurgerSupreme and its shareholders as Radioactive Lettuce had given them a better deal and Burger Supreme paid less for lettuce and tomatoes than to any other of their competitors.   

Based on the logic proposed by Milton Friedman on the responsibility of managers, is James Pickle action acceptable?