College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 6, Problem 1A
To determine

Explain the way in which firms specialized in forensic accounting would help prevent fraud.

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Read the following information and then answer questions a & b below: Assume you are an internal auditor for a large, multinational, manufacturing organization with a division in Mexico. One of your responsibilities is to investigate allegations made on the company’s fraud hotline. When you arrive at work one morning you learn an anonymous tip was left on the hotline that alleges fraud involving the division manager. “Pat’s significant other is a fraudulent vendor,” was the anonymous tip left on your company’s fraud hotline. Pat is a division manager at your company. “Wow. I can’t believe this guy is so blatant,” you are thinking as you review some accounts payable invoices while following up on this anonymous tip. A quick search of the AP file reveals a total of three invoices like the one, all for identical amounts but on different dates. The division manager, Pat, has the authority to approve payment of invoices for less than $10,000. It is obvious to you that the manager has…
Forensic Accounting: Unraveling Financial Deception Forensic accounting stands as a specialized field within the broader domain of accounting, with its primary focus on the detection and prevention of financial fraud. In a world where financial crimes are increasingly sophisticated, forensic accountants play a crucial role in unraveling complex financial transactions and uncovering deceptive practices. Their expertise extends beyond traditional accounting methods, encompassing investigative techniques, legal knowledge, and a deep understanding of financial systems. Fraud Detection: Unmasking Deceptive Practices One of the primary objectives of forensic accounting is to identify instances of fraud within an organization or financial system. Forensic accountants employ a variety of techniques, including data analysis, financial statement scrutiny, and interviews, to uncover irregularities or anomalies that may indicate fraudulent activities. They delve into transactions, scrutinize…
You are a highly experienced CA financial accountant for a law firm, responsible for all aspects of the financial reporting, from preparing budget reports, reconciling accounts, through preparing annual financial reports. The CEO has suspected that the procurement manager is appropriating funds from the firm's bank accounts. He has asked you to assist him to reviewing the financial records for the firm and identify any fraudulent transactions. The procurement manager is a close friend of yours. What sort of forensic accounting service are you providing? Should you accept the engagement to assist the CEO? What sort of evidence would you collect and review? If required to prepare a report for court proceedings, do you think your evidence will be accepted? Why?
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