Questions from Fraud Examination

Q: The management of AAAA Company has observed that the company's cash outflows

The management of AAAA Company has observed that the company's cash outflows have been increasing much more rapidly than its inflows. Management cannot understand the change; from its perspective, it...

Q: As the lead accountant for a small company, you notice that

As the lead accountant for a small company, you notice that inventory purchases from a certain vendor have increased dramatically over the past few months, whereas purchases from all other vendors hav...

Q: One of the most common responses to fraud is disbelief by those

One of the most common responses to fraud is disbelief by those around the fraud.

Q: While auditing a client, the CEO asks you to look carefully

While auditing a client, the CEO asks you to look carefully at cash flows. You notice that cash flows have decreased every year. Upon learning of your findings, the CEO remarks, "I seem to bring in mo...

Q: You are hired as a consultant to determine if fraud is occurring

You are hired as a consultant to determine if fraud is occurring at Startis Company, a manufacturer of designer makeup. An initial search of the company reveals there are three modern, relational data...

Q: Your friend Mark Ambrose runs a small convenience store. He recently

Your friend Mark Ambrose runs a small convenience store. He recently fired an employee who had repeatedly stolen merchandise when closing the store alone. Mark is now looking for a replacement and ask...

Q: Assume that you have selected a random sample of 15 checks from

Assume that you have selected a random sample of 15 checks from a population of 800 checks. The checks you have selected are the following numbers: 664, 789, 650, 136,365,538,800,657, 110, 136, 398, 6...

Q: Enron, one of the largest corporations to ever file for (

Enron, one of the largest corporations to ever file for (Chapter 1) bankruptcy protection, was number 7 on the Fortune 500 list of the largest companies in America as ranked by revenues at the time of...

Q: This chapter included an example of a manufacturing firm that had problems

This chapter included an example of a manufacturing firm that had problems with employee theft of tools. The company decided that it would search every employee's lunch box at the end of each shift. T...

Q: There once was a corporation from Nantucket, Its controls leaked

There once was a corporation from Nantucket, Its controls leaked like holes in a bucket. Smelling trouble with the buyer, And with the supplier, They determined to fix it or chuck it. This limeri...