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6. While conducting the annual audit of National Company's financial statements, Alex Abu Ali, CFE, CPA, came across some fishy findings. The company recorded several
6. While conducting the annual audit of National Company's financial statements, Alex Abu Ali, CFE, CPA, came across some fishy findings. The company recorded several large and unusual sales at the end of the fiscal year to customers Alex had never heard of. Further, all of these sales occurred within the company's specialty division, which had previously been in danger of closing due to recurring losses. Based on these findings, what type of financial statement fraud is likely occurring? 7. Yasser Medical Supply, Inc. has suffered a recent slow-down in sales and is in danger of showing a loss for the 2019 fiscal year. To boost income, the sales manager encourages two of the company's largest customers to overbuy several slow- moving products at deep discounts. He also offers them extended payment terms, some of which delay payment until the end of 2020. This is an example of what type of scheme? 8. Establishing clear and uniform accounting procedures with no exception clauses can help reduce financial statement fraud by addressing which side of the fraud triangle? 9. Promoting strong values, based on integrity, throughout the organization can help reduce financial statement fraud by addressing which side of the fraud triangle? 10. An unusual change in the relationship between fixed assets and depreciation is a red flag associated with which type of financial statement fraud scheme
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