Fraud Examination
6th Edition
ISBN: 9781337619677
Author: Albrecht, W. Steve, Chad O., Conan C., Zimbelman, Mark F.
Publisher: Cengage,
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Question
Chapter 18, Problem 1SC
To determine
The reasons for Mr. P’s reaction to Mr. B’s allegation.
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Students have asked these similar questions
THE CONFUSED ACCOUNTANT
Yvonne Pillar is a young accountant who came from a poor family. She was
recently hired by a big company called Chameleon Co.
When it was time to audit the accounting books of the company, Yvonne was
instructed by her boss to manipulate the numbers in order to reduce taxes the
company will have to pay the government. The company official said that if
she would not heed the command, she would be terminated.
The employment condition that time was really tight and the chances of
finding another job are very minimal.
Questions :
1.)if you were Yvonne Pillar, will you obey your boss? Why or why not?
2.) Are morally obligated to follow an order that is illegal?
Fraud Case 1-1
Exeter is a building contractor on the gulf coast. After losing a number of big lawsuits, it was facing its first annual net loss as the end of the year approached. The owner Hank Snow was under intense pressure from the company creditors to report positive net income for the yar. However, he knew the controller, Alice Li, had arranged a short-term bank loan of $10,000 to cover a temporary shortfall of cash. He told Li to record the incoming cash as “construction revenue” instead of a loan. This would nudge the company’s income into positive territory for the year, and the, he said, the entry could be corrected in January when the loan was repaid.
How would this action affect the year-end income statement? How would it affect the year-end balance sheet?
if you were one of the company’s creditors, how would this fraudulent action affect you?
Give typing answer with explanation and conclusion
Prisha worked in accounting for a large, publicly traded manufacturing company. Last year, she disclosed to the Securities and Exchange Commission (SEC) that the company had issued fraudulent financial statements in order to secure a loan. Prisha is fired from her job and sues the firm. Which of the following is true under the Sarbanes–Oxley Act?
a) Prisha must be rehired into her old position.
b) Prisha must be rehired and given back pay and attorney’s fees.
c) Prisha is entitled to attorney’s fees but nothing else.
d) Prisha is entitled to share in any settlement monies the firm paid to the SEC.
Chapter 18 Solutions
Fraud Examination
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