Internal Accountant’s Report to Management
| |Accountant |
Memo
To: Management
From: Internal Accountant
Date: 10/8/2011
Re: Government Bid
Occupational fraud is defined as the use of a person’s job for individual enrichment through the purposeful mishandling or misapplication of his or her employer’s capital or assets (Wells, 2005). Occupational fraud can have a serious impact with far-reaching consequences. In 2004 for the Association of Certified Fraud Examiners (ACFE) conducted a survey that provided 508 usable studies of fraud for a total of over $761 million
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The final category is conflict of interest. A conflict of interest occurs when an employee has an undisclosed economic benefit in a situation. For example, maybe the employee has a family member who works for one of the companies bidding on a project. If the employee knows that the family member will benefit and does not disclose the information to his superior than that is a conflict of interest. To begin the review process there should be some knowledge of the processes and procedures in the accounting department. It may be a good idea to observe all of the procedures that go into creating the financial statements. Look for any weaknesses or questionable practices and create a list of questions. Then in the next phase the auditor can conduct interviews to get a better understanding of the accounting staff. Observations and interviews can set the groundwork and provide information into any nuances or potential fraud or abuse. Any material weaknesses found can be further explored. Another recommended method for completing a status review is to work back from the financial statements. Make sure that all balance sheet accounts are properly documented and choose a handful of transactions to verify. In verifying the transactions it is important to look at the original documentation for each transaction. It is important to ensure that all of the documentation is accurate and complete. If there are missing
Now one must ascertain that such regulations would only be applied under certain governance systems- a good government; a government that is liable to the people. In such cases, there should be funds available for social programs. I will classify social programs as two types, based on how they should prioritizes allocation of funds:
Throughout most sources, though, it is clear to see that employer fraud is the most prevalent and costly type of fraud. Employer fraud includes a number of schemes used by employers to reduce the number of workers' compensation insurance premiums by underreporting payroll, misclassifying employees' occupations and misrepresenting their claims experience. According to the National Council on Compensation, the most common frauds include:
4. Total conversion cost = $128,000 + $16,000 + $9,000 + $64,000 + $41,000 + $35,000 + $46,000 = $339,000
The holding period of the partnership interest includes the partner’s holding period for the 1232 assets contributed. The
Head Usher: While the church may not be currently experiencing anything wrong with the usher selection and volunteer system at the church, some improvements might be considered. The church might consider making the head usher a year-long term, elected by church members to create continuity, but also impose term limits – possibly every 3-4 years a head usher must take a sabbatical. Additionally, because the head usher role is so pivotal in the collection process, and it is a place where mistakes or malfeasance can easily take place; it would be helpful for the ushers and the financial secretary to be present in the collection counts, the day of, so someone outside the usher department can verify tithe counts.
What is the purpose of the dividends received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction?
“The ACH procedure has the offsetting advantage of focusing attention on the few items of critical evidence that cause uncertainty or which, if they were available, would alleviate it.” (Heuer, 1999). Conclusions are derived from analysis of data, evidence is compared to possible hypotheses, and a hypothesis assessment is based on the reliability of the sources and validity and plausibility of the intelligence. Confidence levels are labeled as high, moderate, and low by ICD 203 standards.
Per management’s request this document has been prepared to assist in determining if a full financial status review of the recent job bid is necessary. Fully understanding and preparing for possible issues is vital to our organization’s success. Several key points and issues should be reviewed prior to entering into any contracts. The following information will be discussed in this memo: 1.) The impact of occupational fraud and abuse on the company, 2.)
The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011.
Written Assignment The Financial Ratios According to Weaver Corporation financial statements for the year 2013. Calculate the following: (1) Current ratio = Current Assets
· Discuss, in 200 300 words, each of the four financial statements. Explain the different
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.
Analytical procedures are performed to assess whether there is any material modifications that need to be made to the financial statements. The accountant must obtain knowledge of the industry and entity in order to better understand the financials. The focus of the procedures and review should be in the areas where there are increased risks of material misstatements. The auditor should compare the financial statements to prior periods and inquire about any significant changes and/or discrepancies. Financial statements are reviewed to ensure they are prepared in accordance with GAAP, and that proper accounting principles and procedures are applied.
The Moose Wings Cooperative Flight Club owns a number of airplanes and gliders. It serves fewer than 2,000 members, who are numbered sequentially from the founder, Tom Eagle (0001), to the newest member, Jacques Noveau (1368). Members rent the flying machines by the hour, and all must be returned on the same day. The following six records were among those entered for the flights taken on September 1, 2010:
Over the past two years, corporate America has endured a plethora of fraudulent acts committed by those of high status within their respective corporations, most of which involve internal fraud. Internal fraud has two main aspects, misappropriation of assets and fraudulent financial reporting, with the focus of this discussion lying within the former. Misappropriation of assets is defined as fraud for personal gain. It is the most common type of fraud found among employees and frequently includes theft of cash and inventory.