Horngren's Financial & Managerial Accounting

5th Edition

ISBN: 9780133851281

Author: Matsumura

Publisher: PEARSON

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Textbook Question

Chapter C, Problem C.1CTFC

Didrikson Rubin, the auditor of Red Barn Farm Equipment, was verifying cash payments to vendors for the past several months. She noticed that several checks had been paid to a specific vendor, but she couldn’t find a record of the transactions in the computerized system. Didrikson suspects that an employee is issuing checks to a fictitious “vendor” and then deleting the transactions from the computerized system. How might Didrikson investigate the suspected fraud?

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Chapter C, Problem C.1CTDC

Chapter C, Problem C.1CTCA

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Baker is an auditor for ABC Company. As part of a proactive fraud audit, Baker runs the following tests: (1) a review of the Sales Register for dormant customer accounts that posted a sale within the last two months; and (2) a comparison of the Sales Register and the Shipment Register for shipping documents that have no associated sales order. Taken together, what type of non-cash scheme is Baker most likely to find with these tests? Explain how each one might identify fraud.

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.

All-Around Sound Co. discovered a fraud whereby one of its front office administrative employees used company funds to purchase goods such as computers, digital cameras, and other electronic items for her own use. The fraud was discovered when employees noticed an increase in the frequency of deliveries from vendors and the use of unusual vendors. After some investigation, it was discovered that the employee would alter thedescription or change the quantity on an invoice in order to explain the cost on the bill.What general internal control weaknesses contributed to this fraud?

Chapter C Solutions

Horngren's Financial & Managerial Accounting

Ch. C - Prob. 1QC Ch. C - Prob. 2QC Ch. C - Prob. 3QC Ch. C - Prob. 4QC Ch. C - Prob. 5QC Ch. C - Centex Sound Systems purchased merchandise...Ch. C - Every transaction recorded in the cash payments...Ch. C - Prob. 8QC Ch. C - Prob. 9QC Ch. C - What is an accounting information system (AIS)?

Ch. C - Prob. 2RQ Ch. C - Explain the three basic components of an...Ch. C - Prob. 4RQ Ch. C - What is the purpose of a subsidiary ledger?Ch. C - Prob. 6RQ Ch. C - List the four special journals often used in a...Ch. C - Explain the posting process of the sales journal.Ch. C - Provide some examples of transactions that would...Ch. C - Explain the posting process of the cash payments...Ch. C - When is the general journal used in a manual...Ch. C - Prob. 14RQ Ch. C - Prob. 15RQ Ch. C - Prob. 16RQ Ch. C - How would a business record a sale of services on...Ch. C - Prob. 18RQ Ch. C - Evaluating features of an effective accounting...Ch. C - Prob. C.2SE Ch. C - Identifying special journals Use the following...Ch. C - Prob. C.4SE Ch. C - Prob. C.6SE Ch. C - Prob. C.8SE Ch. C - Prob. C.9SE Ch. C - Prob. C.10SE Ch. C - Posting transactions from a cash payments journal...Ch. C - Prob. C.12SE Ch. C - Prob. C.13SE Ch. C - Recording transactions-sales journal Feb. 1 Sold...Ch. C - Prob. C.15E Ch. C - Prob. C.16E Ch. C - Prob. C.17E Ch. C - Prob. C.18E Ch. C - Prob. C.19E Ch. C - Prob. C.20E Ch. C - Prob. C.21E Ch. C - Prob. C.22E Ch. C - Prob. C.23E Ch. C - Prob. C.24AP Ch. C - Using the purchases, cash payments, and general...Ch. C - Prob. C.26AP Ch. C - Prob. C.27BP Ch. C - Prob. C.28BP Ch. C - Prob. C.29BP Ch. C - Prob. C.30CP Ch. C - Prob. C.31PS Ch. C - Prob. 1COP Ch. C - Prob. C.1CTDC Ch. C - Didrikson Rubin, the auditor of Red Barn Farm...Ch. C - Communication Activity C-1 In 150 words or fewer,...

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