Assume that fraud has been discovered In the “Possible Errors and Fraud” list, shown as A through O In the problem. Select two of the fraud Items from the list and note them here: Fraud Item Invoices for goods sold are posted to incorrect customer accounts. Fraud Item Invoices are sent for shipped goods and are recorded in the sales journal, but are not posted to any customer account. Following the scientific method, answer the following questions below: a.
Do aground research in relationship to the issue to get a more in-depth understanding of the situation. What questions would you ask of management to determine how the fraud Is occurring based on the specific fraud Identified? Fraud Item #1 Are the employees In charge of shipping comparing the product shipped with the sales Invoice to determine that the goods are being shipped to the customer who ordered them? Fraud Item #2 Why are the invoices for shipped goods not being posted to any of the customers’ accounts? B. Construct your hypotheses concerning the issue which we will use to test our data against.
Your hypotheses will be the implications on the financial statements because of the fraud Items you Identified. (Which accounts are affected? Will they be overstated or understated? ) Fraud Item #1 If Invoices are checked once a month, then goods would not be sent to wrong customers. Fraud Item #2 If controlled amounts posted to the accounts receivable ledger are compared with control totals of invoices, then invoices would be posted to the customer’s account. C. Test your Hypotheses by doing experiments. To test your hypotheses, you’ll need to list controls that would have to fall for the read to be committed.
Then for testing, list what specific audit procedures you “Controls” from problem 11-38 that apply to your fraud items. Controls that would have to fail to allow fraud Audit procedures to test controls Fraud Item #1 Invoices are going to the wrong customer C. Monthly statements are mailed to all customers with outstanding balances. Fraud Item #2 Invoices are not being posted to the customer’s account K. Control amounts posted to the accounts receivable ledger are compared with control totals of invoices. D. Analyze your data and draw a conclusion concerning the population under study.
We are assuming that fraud has been discovered in the two areas you chose, so that’s the conclusion! E. Communicate your results. To communicate your results, list some enhancements or changes to controls that need to be made to keep the fraud from occurring in the future. Fraud Item #1 Statements will be mailed out to the customers that have an outstanding balance every month. Fraud Item #2 The control amounts that are posted to the accounts receivable ledger will be compared with control totals of invoices at least once a month.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.