Joel Harbinger, a certified public accountant, has worked for the past eight years as a payroll clerk for Southeast Industries, a small furniture- manufacturing firm in the Northeast. Joel recently experienced unfortunate circumstances. His wife required major heart surgery and the medical bills not covered by Joel's insurance have financially strained his family. Joel is a hard worker and a model employee. Although he received regular performance raises during his first few years at the company, his wages have not increased in the past three years. Joel recently asked his supervisor, Janna Johnson, for a raise. While Janna agreed that Joel deserved a raise, she told Joel that he could not currently approve of one because of "sluggish sales." Joel returned to his accounting duties while the financial pressures in his life continued. Two weeks later, when a salesperson, George Green, quit over a dispute with management, Joel came up with a plan. Since he processed employee terminations, time card approval, and paycheck distribution, Joel decided to delay Mr. Green's termination, forge the time cards with his signature and then cash his checks for himself. (Since he distributes the paychecks every two weeks no one would find out anyway.) In fact, no one ever discovered his scheme and Joel continued the practice for a full year, "earning" Joel an extra $95,000. 1. How does Joel's scheme affect Southeast's balance sheet (specifically Cash and Retained Earnings) for the year? Ignore income taxes. 2. How does Joel's scheme to continue to pay George affect the income statement (specifically Revenues, Expenses and Net Income)? 3. Use the fraud triangle from (Chapter 4 Exhibit 4.5) to identify the three elements of the fraud triangle and to explain how Joel's situation meets each of these elements. Write two to three sentences to explain each fraud element. 4.What internal controls could have been put in place to prevent Joel's paycheck scheme in the first place? (Name at least three. Don't make these up; use specific internal controls outlined in Chapter 4) Be sure answer in complete sentences and fully cite any references used (including page numbers or url). See Rubric for grading details. All posts will be graded for content, spelling and grammar. Suggested word count: 400-600 words. Joel Harbinger, a certified public accountant, has worked for the past eight years as a payroll clerk for Southeast Industries, a small furniture- manufacturing firm in the Northeast. Joel recently experienced unfortunate circumstances. His wife required major heart surgery and the medical bills not covered by Joel's insurance have financially strained his family. Joel is a hard worker and a model employee. Although he received regular performance raises during his first few years at the company, his wages have not increased in the past three years. Joel recently asked his supervisor, Janna Johnson, for a raise. While Janna agreed that Joel deserved a raise, she told Joel that he could not currently approve of one because of "sluggish sales." Joel returned to his accounting duties while the financial pressures in his life continued. Two weeks later, when a salesperson, George Green, quit over a dispute with management, Joel came up with a plan. Since he processed employee terminations, time card approval, and paycheck distribution, Joel decided to delay Mr. Green's termination, forge the time cards with his signature and then cash his checks for himself. (Since he distributes the paychecks every two weeks no one would find out anyway.) In fact, no one ever discovered his scheme and Joel continued the practice for a full year, "earning" Joel an extra $95,000. 1. How does Joel's scheme affect Southeast's balance sheet (specifically Cash and Retained Earnings) for the year? Ignore income taxes. 2. How does Joel's scheme to continue to pay George affect the income statement (specifically Revenues, Expenses and Net Income)? 3. Use the fraud triangle from (Chapter 4 Exhibit 4.5) to identify the three elements of the fraud triangle and to explain how Joel's situation meets each of these elements. Write two to three sentences to explain each fraud element. 4.What internal controls could have been put in place to prevent Joel's paycheck scheme in the first place? (Name at least three. Don't make these up; use specific internal controls outlined in Chapter 4) Be sure answer in complete sentences and fully cite any references used (including page numbers or url). See Rubric for grading details. All posts will be graded for content, spelling and grammar. Suggested word count: 400-600 words