What Are The Effectiveness Of Sport's Billing Procedures In Relation To Accounts Receivable

First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

This shows that invoices were made twice for large amounts possibly by fraudsters that have approved the transactions. It’s very clear that the invoices were recorded this way.

For purposes of the Statement, fraud is an intentional act that results in a material

The entries used to record the disposition when the receivables are sold to a factor often detail the cash received plus the service charge. The company can then balance their receivables account. When a credit card company records a credit card

Internal fraud consists in “a type of fraud that is committed by an individual against an organization. [Furthermore], a perpetrator of fraud engages in activities that are designed to defraud, misappropriate property, or circumvent the regulations, law, or policies of a company”[8]. Not only has the incidence of internal fraud increased in frequency because of the availability of sensitive information such as client details or confidential business documents; moreover, this type of fraud is found in various types of organizations, ranging from corporations, public service institutions and financial institutions. Our analysis will concentrate on the most common and prolific types of internal fraud, namely identity theft, insider trading, loan fraud and wire fraud. Interestingly, PriceWaterhouseCooper conducted a survey that revealed that the “demographics of a typical fraudster are as follows: males (85% of cases), 31-50 years (72% of cases), reached high-school level (50%), Bachelor’s or post graduate degree (50%) and middle or senior management (52%)”[9].

1. Fraudulent financial reporting – reporting false financial performance and overstating the company’s earnings and falsifying the level of liabilities to attract investor’s contributions.

According to the accounts receivable report, a major client of Smackey is Chicago’s retail chain Pub Stores. They alone represent 31% of overall sales and revenue of Smackey Dog Foods. Pub Stores is a primary customer who usually makes payment within 30 days. Extract from accounts receivable aging, current receivable under 30 days have only 38% of the total amount. If Pub store contributes 31% to this data, that means other good customers who makes their payments on time to Smackey beside Pub store only accounts for 7%.

The historical backdrop of offenses of fraud and theft can be viewed as containing three fundamental waves. The main happened in England in the eighteenth century and focused on the offense of acquiring property by falsifications. This was portrayed by the administrative augmentation of the custom-based law offense of robbery, and a resulting and proceeded with sanctioning of particular offenses to manage singular issues. The second wave took after the order of the Theft Act 1968 (UK) c 60 ('Theft Act') and denoted a move far from considering property to be the subject of the offense. In the Theft Act a consider endeavor was made to make general misrepresentation offenses. Inside the Criminal Law Review Committee ('CLRC'), which defined the

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

11. Accounts receivable turnover and days sales in accounts receivable for the last three years:

1) Anna Thomas committed a fraudulent act by making personal charges and cash withdrawals on Rusher Automotive’s credit card. The accounting profession believes there are three conditions necessary for fraudulent behavior. (See Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit. For additional explanation, you may want to review Buckhoff [2001].)

Fraud is defined as a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses through deception or concealment. And Occupational Fraud as defined by the ACFE is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Traditional fraud triangle theory by Donald Cressey explains that propensity of fraud occurring in an organization lies on three critical elements which are Pressure, Opportunity, and Rationalization.

The most significant fraud of state services in the short history of NZ was the scandal of the Otago District Health Board (ODHB) which was uncovered in 20083. The Chief Information Technology Officer (CIO) at the time was the 47-year-old Michael Swann, whom was instrumental to this case of fraud. Swann was able to perpetrate a multimillion-dollar fraud with the help of his friend Kerry Harford by generating illegitimate and fallacious computer, software and insurance invoices. ODBH was defrauded of almost $17 million NZD over 6 years3. A repercussion of this scandal as had detrimental implications on the stakeholders of ODHB and we will look into that in this report. We will also outline the auditor’s role and responsibilities in this report, and if they are liable for any of the damages suffered by plaintiffs. We will conclude with briefly covering the outcome of the fraud case and the current situations are for those involved.