Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer All the questions (3x3) Rashid is an internal auditor for Qudratullah Industries, a forest products company. On March 31, he reviewed his completed
Answer All the questions (3x3) Rashid is an internal auditor for Qudratullah Industries, a forest products company. On March 31, he reviewed his completed tax return and noticed that the federal income tax withholding on his final paycheck was $5 more than the amount indicated on his W-2 form. He used the W-2 amount to complete his tax return and made a note to ask the payroll department what happened to the other $5. The next day, Rashid was swamped, and he dismissed the $5 difference as immaterial. On April 16, a coworker grumbled that the company had taken $5 more from his check than he was given credit for on his W-2. When Rashid realized he was not the only one with the $5 discrepancy, he investigated and found that all 1,500 employees had the same $5 discrepancy. He also discovered that the W-2 of Abdul Mannan, the payroll programmer, had thousands of dollars more in withholdings reported to the Internal Revenue Service (IRS) than had been withheld from his paycheck. Rashid knew that when he reported the situation management was going to ask questions 1. How vulnerable is the Company's computer system to fraud? 2. How can the company detect and prevent fraud? 3 Why did the company not catch these mistakes? Was there a breakdown in controls?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started