Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134796741
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 15, Problem 15.26C
Summary Introduction

Case summary:

In the 1990s, Person DK built a security systems company. His deals were based on handshakes and phone calls. Federal prosecutors determined that he is living a lavish lifestyle. He was first indicated on delinquent unpaid sales tax. He went to prison for falsifying record, abusing corporate loan programs, and conspiracy and he was released in the same year.

Due to this kind of financial scandal, companies started showing interest in forensic accounting. Association of Certified Fraud Examiners (ACFE) stated that corporate finance cases are increasing due to the recession. Asset theft is the common kind of fraud that includes forging checks, stealing non-cash assets, stealing cash, and falsifying business expenses.

To determine: The following are the agenda for the anti-fraud training for the employees of the company.

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Karen, a friend of yours, recently started her own business, The Bike and Boulder Company (B&B). B&B specializes in the sales of mountain bikes and rock climbing equipment. Karen is putting the finishing touches on her company policies and procedures. She knows you are taking a fraud class and asks you to review what she has completed thus far. You quickly notice that Karen has neglected to address fraud and fraud prevention in her policies and procedures. What policies and procedures would you suggest Karen implement to prevent fraud at B&B?
what are the consequences of auditing fraud?
How is the Fraud Triangle similar to sin?  How can you use the Fraud Triangle concepts to help identify and  avoid possible bad situations?
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