Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 (25 MARKS) Research shows that anyone can commit fraud. Fraud perpetrators usually cannot be distinguished from other people on the basis of demographic

image text in transcribed

image text in transcribed

QUESTION 1 (25 MARKS) Research shows that anyone can commit fraud. Fraud perpetrators usually cannot be distinguished from other people on the basis of demographic or psychological characteristics. Most fraud perpetrators have profiles that look like those of honest people. a. Define the elements of fraud triangle and explain the importance of fraud triangle. [7 marks] b. For each of the following circumstances, identify which of the internal control activities or procedures was lacking and recommend how the company should change its procedures to avoid problem in the future. i. Maidin Retailers' losses due to bad debts have increased dramatically over the past year. In an effort to increase sales, the managers of certain stores have allowed large credit sales to occur without review or approve of the customers. [3 marks) il. An accountant hid his theft of RM200.00 from a company's bank account by overstating outstanding cheque on monthly reconciliations. He believed the manipulation would not be discovered. [3 marks) iii. Joe Silva works in a store room. He maintains the inventory records, counts the inventory and has unlimited access to the store room. He occasionally steals items of inventory and hides his theft by overstating the physical inventory records. [3 marks] iv. Receiving reports are sometimes filled out days after shipments have arrived. [3 marks] C. Provide any two (2) differences of accountant's roles, external auditor's roles and forensic accountant's roles. [6 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditor Essentials 100 Concepts Tips Tools And Techniques For Success

Authors: Hernan Murdock

1st Edition

1138036919, 978-1138036918

More Books

Students also viewed these Accounting questions