Forensic accounting

Paste I Uva x, x Question 2 10 Marks RST Lid is a successful IT equipment retailer. Sales and profits have been rising steadily over the past 5 years. Peter has been with the company for 20 years and has recently been promoted to Chief Financial Officer. The Chief Executive Officer, Kazi, met with Peter recently to discuss the financial performance of the company for the year ending soon. During the meeting, Peter noticed that Kazi and his staff appeared quite stressed and nervous that the company may not meet sales and profit expectations because it had lost a contract with a major vendor. Over the next few weeks, Kazi and his staff seemed to become even more stressed, and Peter noticed Kazi working late at night with the internal auditor. At year- end, there were celebrations and the company met its targets. Peter was pleased to see this though he wondered how this was achieved. a. List and briefly describe the six different types of fraud symptoms: (3 marks) Types of fraud symptoms - describe Question 2 continued next page Question 2 (continued) b. What fraud symptoms are present in this case? Explain. (3 marks) Fraud symptoms in this case c. Explain how Peter might use accounting data to determine whether fraud is occurring in this case. (4 marks) Using accounting data Page 3 of 19 1598 words English (Australia)