What are fraud audits and why have they become more common?
The objective of a fraud audit is to investigate anomalies and gather evidence of fraud that may lead to criminal conviction. Sometimes fraud audits are initiated when corporate management suspects employee fraud. Alternatively, boards of directors may hire fraud auditors to investigate their own executives if theft of assets or financial fraud is suspected. Organizations victimized by fraud usually contract with specialized fraud units of public accounting firms or with companies that specialize in forensic accounting. In recent years fraud audits have increased in popularity as a corporate governance tool. They have been thrust into prominence by a corporate environment in which both employee theft of assets and major financial frauds by management (e.g., Enron, WorldCom, etc.) have become rampant.
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Long, Inc uses the accrual basis of accounting. Long's rent expense account had a balance of $18,000 at the end of the year. The prepaid rent account had a balance of $5,000 at the beginning of the year and a balance of $9,000 at the end of the year. How much cash was paid for rent during the year?
A) $ 5,000 B) $9,000 C) $18,000 D) $22,000
Anticipating ________________ (two words) is a second key step in effective preparation
A) presentation attire B) audience reactions C) visual aids D) technology costs
The two most common types of attribute control charts are ______.
a. c-charts and range-charts b. c-charts and p-charts c. mean-charts and range-charts d. p-charts and range-charts
The following are Silver Corporation's unit costs of making and selling an item at a volume of 8600 units per month (which represents the company's capacity): Manufacturing: Direct materials$2.20? Direct labor$3.20? Variable overhead$1.70? Fixed overhead$0.45? Selling and administrative: Variable$3.20? Fixed$0.85? Present sales amount to 6400 units per month. An order has been received from a customer in a foreign market for 2200 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume that direct labor is a variable cost.Assume the
company has 60 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. Which of the following costs is relevant in this decision? A. $7.55 unit product cost B. $11.60 full cost C. $7.10 variable manufacturing cost D. $3.20 variable selling and administrative cost