Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 16, Problem 2P
To determine
Explain the types of internal frauds threats and the method of protection against each fraud threats.
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Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment.
For this assignment, you are to construct a diagram of the Fraud Triangle and clearly label each component of the Fraud Triangle. For each of these three components, provide the following:
An explanation (two to three paragraphs) of each of the three components, specifically addressing how it could contribute to fraud.
For each component of the Fraud Triangle, provide the following:
List and briefly discuss internal controls for each of the three components that could help to reduce the impact of potential frauds related to that component of the Fraud Triangle.
Note: This means that you will have a total of 24 internal controls documented. A few of the internal controls might be common to each component but please tailor them to the component you are referring to and do not copy and paste the same eight internal controls for each component.
While APA style is not required for the body of this assignment, solid academic writing is expected and in-text citations and references should be…
Write a one-page memo analyzing the relationship between fraud and internal controls. Explain the principles underlying these approaches. Include a note on the limitations of internal controls.
Chapter 16 Solutions
Accounting Information Systems
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - What is the importance of the SPL?Ch. 16 - Prob. 9RQCh. 16 - Prob. 10RQ
Ch. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - What tests may be conducted for identifying...Ch. 16 - Prob. 14RQCh. 16 - Prob. 15RQCh. 16 - Prob. 16RQCh. 16 - Prob. 17RQCh. 16 - Prob. 18RQCh. 16 - Prob. 19RQCh. 16 - Prob. 20RQCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - What are rounding error routines, and why are they...Ch. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - The systems development life cycle is a...Ch. 16 - Prob. 10DQCh. 16 - Prob. 11DQCh. 16 - Compare and contrast the following techniques...Ch. 16 - Prob. 13DQCh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Which of the following is NOT an SDLC controllable...Ch. 16 - Prob. 4MCQCh. 16 - Which of the following statements is NOT correct?...Ch. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQCh. 16 - Prob. 8MCQCh. 16 - Prob. 9MCQCh. 16 - Prob. 10MCQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - The Balcar Companys external auditors are...Ch. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Prob. 14PCh. 16 - Prob. 15PCh. 16 - Prob. 16PCh. 16 - Prob. 17PCh. 16 - Prob. 18P
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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?
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Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer.
Which of the following statements is (are) true?
a. The type of computer fraud that is simplest and most common and that requires the least amount of skill is data
b. The type of computer fraud that is the most difficult because it requires the most skill is computer instructions fraud
c. The biggest cause of data breaches is organized by hacker groups.
d. Losses from the theft of physical assets are much greater than those from the electronic theft of data
e. In the absence of controls, it is not hard for a dishonest employee to steal data.
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Which of the following is not included in a vulnerability chart?
a.
Internal controls that a company plans to institute in the future.
b.
Breakdowns in key internal controls that may have created fraud opportunities.
c.
Theft investigation methods
d.
Explanations of the fraud triangle in relation to suspects of fraud.
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Apart from the internal audit and whistleblowing functions, what other mechanisms can assist management in tackling fraud?
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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?
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Well-designed internal control will prevent all fraud by top management.
True or False
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a. Internal controls play an important role in reducing the risks of fraudulent activities in any organization. Further, advanced technology helps accountants in reducing fraud. Explain how an advanced technology transaction processing system reduces fraudulent activitiesfrom any organizing.b) Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment.----------------------------------------------------------------------------------------
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The risk of fraud in a computerized system is lower than in a manual system because of the use of automated controls. true or false
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Frauds are often detected through the receipt of an anonymous tip, by management review, by internal audit, by external audit, by any employee, or by accident.
-True or false
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