Explain several statements about occupational fraud

Reference no: EM131520121

Question: Below are several statements about occupational fraud.

1. For most large companies, occupational fraud is minimal and internal control procedures are unnecessary.

2. Managers have a variety of reasons for manipulating the numbers in financial statements, such as maximizing their compensation, increasing the company's stock price, and preserving their jobs.

3. Internal control procedures include formal policies and procedures related to (1) safeguarding the company's assets and (2) improving the accuracy and reliability of accounting information.

4. "Cooking the books" is a phrase used by accountants to indicate the preparation of financial statements that are free of manipulation.

5. Most occupational fraud cases involve misuse of the company's resources.

6. Common types of financial statement fraud include creating fictitious revenues from a fake customer, improperly valuing assets, hiding liabilities, and mismatching revenues and expenses.

Required: State whether the answer to each of the statements is true or false.

Reference no: EM131520121

Questions Cloud

What factors are present in mario history : Mario is a 68-year-old male whose wife died of cancer five years ago. What factors are present in Mario's history that predispose him to erectile dysfunction

Actual present value of winning : If the proper discount rate is 4% per year, what is the actual present value of your winning?

Describe how technology is changing the face of businesses : Describe how technology is changing the face of businesses today. Cite at least three sources found in your online library research.

Capital budgeting and cost of capital report : Prepare a Capital Budgeting and Cost of Capital report that answers the following Question.

Explain several statements about occupational fraud : For most large companies, occupational fraud is minimal and internal control procedures are unnecessary.

How does law influence health and health behavior : How does law influence health and health behavior in this context? Which laws have had the greatest impact?

Cycle ratios based on the financial statements : Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:

Discuss the sarbanes-oxley act : SOX represents legislation passed in response to several accounting scandals in the early 2000s.

Does betty have a cause of action : Does Betty have a cause of action? Why or why not? What relevance do the ages of the other partners who were let go have to her case?

User Account

All Pages