Case Study 1_Richard Cotton

Subject: Accounting Information System ETHICS, FRAUD, AND INTERNAL CONTROL Stated Problem: EXPENSE ACCOUNT FRAUD While auditing the financial statements of Petty Cor-poration, the certified public accounting firm of TrueBlue and Smith discovered that its client’s legal expenses account was abnormally high. Further investigation of the records indicated the following:•Since the beginning of the year, several disbursements totaling $15,000 had been made to the law firm of Swindle, Fox, and Kreip.•Swindle, Fox, and Kreip were not Petty Corporation's attorneys. A review of the canceled checks showed that they had been written and approved by Mary Boghas, the cash disbursements clerk. Boghas’s other duties included performing the end-of-month bank reconciliation. Subsequent investigation revealed that Swindle,Fox, and Kreip are representing Mary Boghas in an unrelated embezzlement case in which she is the defendant. The checks had been written in payment of her personal legal fees.…

6. Access a recently issued SEC Accounting and Auditing Enforcement Release related to a fraud action (www.sec.gov). Click on enforcement and determine incentive(s)/pressure to commit the fraud, accounting issue(s), and the motive for the fraud. " Access the Accociation of C

Chapter 3 of the textbook discusses many methods individuals can use to communicate financial statement information to stakeholders in a fraudulent manner. Choose one method and explain how perpetrators use it. Which of the three “M’s of financial reporting fraud does this method fall under? Cite a case related to the method.

Y6 ACCT 361:Ethical, Fraud, and Legal Issues for Accountants: Evaluate investor fraud through a case study on a Ponzi Scheme. Research Madoff Ponzi Scheme. Please only own words!!! At a minimum, the report should discuss the background of the case, what factors led to the fraud, what specific fraud occurred, what was the effect on investors and creditors, what was the effect on company employees, what was the effect on the individuals that perpetrated the fraud, what was the effect on the investment and regulatory markets, how was the audit firm associated with the company affected by the fraud, what could have been done to prevent the fraud, and how did this case affect your views/opinions. PLEASE ONLY OWN WORDS!!!

Match each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indicate your answer by writing the letter A through G for the term or phrase in the blank provided. A. Ethics. B. Fraud triangleC. Prevention.

Ethical, Fraud, and Legal Issues for Accountants 1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers knew about the financial statement fraud? What factors support his defense that he did not know about the fraud?

Enron corporation: accounting fraud what five recommendations you would suggest to strengthen the independent audit function following the Enron sandal? what responsibilities, if any, do audit firm have with regard to the quarterly financial statements of their client?

How can fraud be prevented in the making use of accounting information systems? How do ethics and internal control play key roles in reporting misstated financial statements? (Accounting Information System Tenth Edition by James Hall chapter 3)

You read that there is no generally accepted definition of ‘earnings management’.  Using your accounting knowledge, your own research and textbook reading to define, describe, and analyze: When will earnings management be acceptable? When will earnings management become a fraud?  Fraudulent earnings management is often identified by two adjectives. What are the two adjectives?  How should each of the two adjectives be defined in the context of this week’s lessons on ‘financial reporting fraud’? Include a biblical application in your analysis.

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# 18: In 2001, the Enron scandal rocked the world of accounting. What is the name of Enron's external auditor, who failed to detect rampant fraud at Enron and was indicted for obstruction of justice for shredding documents related to the audit? A. Coopers & Lybrand B. Grant Thornton C. Pricewaterhouse D. Arthur Andersen a och Bola Josi to ipval txoa silt at bume

1. Access the International Federation of Accountants Web site (www.ifac.org) and briefly describe the following two International Auditing Standards: ISA 500 and ISA 505. 2. Access the U.S department of justice website, and briefly explain the characteristics of identity theft. Give two examples of ways to commit identity theft. 3. Locate SEC Accounting and Auditing Enforecement Release No. 3029. What did that SEC release discuss?