Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 13, Problem 6DQ
Summary Introduction
To determine: The controls and technology that would reduce the risk of fraudulent activities in Company S and Company V.
Introduction:
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If one of the three elements of the fraud triangle is not present, can fraud still be perpetrated? Explain.
Identify factors (red flags) that would be strong indicators of opportunities to commit fraud.
Is the ability to rationalize the fraud an important aspect to consider when analyzing a potentially fraudulent situation? What are some of the common rationalizations used by fraud perpetrators?
Define and illustrate kiting. What controls should the client institute to prevent it?
Understanding what constitutes fraud and understanding the framework are a part of developing an internal control program. The fraud triangle is a framework that is used to understand and explain what the motivation could be when a person decides to commit fraud.
Thinking about the fraud cases that you are aware of, how would the fraud triangle explain fraudulent behavior?
In writing your response, the following points must be addressed fully:a) Determine the type of fraud committed and describe with examples thesymptoms of fraud that are evident in the case study.b) As discussed in units 1 to 4, all frauds involve key elements. Identify anddescribe, using examples, the elements of the Purell’s magazine fraud.c) What role did trust play in allowing this fraudulent scheme to transpire?What elements contributed to this trust? Outline two positive and twonegative consequences that this might pose to the company in future fraudprevention.d) Describe Purell Magazine and Publishing House fraud preventionprogramme and identify any improvements that might be necessary toprevent this type of fraud or at least discover it sooner.
Chapter 13 Solutions
Accounting Information Systems
Ch. 13 - Prob. 1RQCh. 13 - What primary functions does the AP/CD process...Ch. 13 - Prob. 3RQCh. 13 - What are the fundamental responsibilities of the...Ch. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - How does EDI improve the effectiveness and...Ch. 13 - What is EIPP? How does it improve the efficiency...
Ch. 13 - What are the two operations process...Ch. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 1DQCh. 13 - This chapter discusses both fraud and...Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 1SPCh. 13 - Prob. 2SPCh. 13 - Prob. 3SPCh. 13 - Prob. 4SPCh. 13 - Prob. 5SPCh. 13 - Prob. 6SPCh. 13 - Prob. 4PCh. 13 - Our narrative and DFDs are created assuming that...Ch. 13 - Prob. 6PCh. 13 - Prob. 7P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Many consider the Enron fraud to be one of the most significant frauds of the early 2000s. a. Describe the various failures and environmental characteristics during this rime that enabled the Enron fraud to happen. b. What elements of the fraud triangle seem most relevant to the Enron fraud?arrow_forwardExplain what a ‘fraud risk factor means’ and discuss thethree conditions generally present when fraud occurs. Illustrateyour answer with two examples of fraud.arrow_forward“Identity theft is often applied to a wide range of crimes, including checking account fraud, counterfeiting, forgery, auto theft using false documentation, trafficking in human beings, and terrorism, most policymakers, and researchers agree that identity theft includes the misuse of another individual’s personal information to commit fraud”. Required: Where does identity theft fraud happen often? Explain any five steps that victims should need to take once identity theft occurs.arrow_forward
- Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Which account would be the best place to hide the fraud?a. Inventory.b. Wage expense.c. Consulting service expense.d. Property tax expense.arrow_forwardThe following scenarios are taken from actual fraud cases. For each scenario, categorize as primarily indicating (A) An incentive to commit fraud (B) An opportunity to commit fraud or (C) a rationalization for committing fraud. State your reason for your answer in each scenario. 1. Top management of the company closely guards internal financial information, to the extent that even some employees on a "need to know basis" are denied full access.arrow_forwardThe fraud triangle asserts that the following three factors must exist for a person to commit fraud.A. Opportunity B. Pressure C. RationalizationIdentify the fraud risk factor (A, B, or C) in each of the following situations. The business has no cameras or security devices at its warehouse.arrow_forward
- Whistle-blowers have played a key role in fraud detection. There are several types of whistle-blowers and safeguards for each type. Analyze the adversities that whistle-blowers face, including the safeguards intended to protect them. Compare the different types of whistle-blowers. What is the importance of each type?arrow_forwardDefine the following and give 1 actual case as an example for each type of fraid and methods of prevention.a) Counterfeiting Fraudb) Credit Card Fraudc) Embezzlement d) Insider Tradingarrow_forward“Organizations are encouraged to take every precaution possible to protect their information systems so that potential for fraud and any resulting losses can be significantly minimized.” Required: Critically explain any three motives behind the cheque fraud scheme. What to do if someone has deposited a fake cheque into your bank account?arrow_forward
- The fraud triangle asserts that the following three factors must exist for a person to commit fraud.A. Opportunity B. Pressure C. RationalizationIdentify the fraud risk factor (A, B, or C) in each of the following situations. Officers are told to show rising income or risk layoffs.arrow_forwardWhat is the major goal of the brainstorming session on fraud?arrow_forward
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