Internal Control: Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. Case information: A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means. To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Question

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Answer 1

Question

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

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Answer 2

Question

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

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Answer 3

Question

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

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Answer 4

Question

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

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Answer 5

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

Answer 6

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.

Conclusion

Hence, it can be concluded that fraud is any activity done by a person by deceiving another person for his personal benefits.

Answer 7

Chapter 8, Problem 1Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Case information:

A local bank reports a loss of $150,000 due to a fraud committed by an employee. An individual, E. Jass is not clear on what the term “employee fraud” means.

To ascertain: The meaning of fraud along with an example of frauds that may occur at banks.

Answer 8

Expert Solution & Answer

Explanation of Solution

Meaning of fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

Example:

An example of a fraud that might take place in at a bank is when a bank employee deposits the funds deposited by a customer into his own funds or someone else’s funds.