User Account

All Pages

What are potential frauds that may happen

Assignment Help Accounting Basics
Reference no: EM132466124

Problem 1: The ABC Company has two divisions, the sales and manufacturing divisions. The president (Randy Savage) manages the sales division. Savage delegated responsibility for management of the manufacturing division to Jane Thomas. The company has a competent accounting staff and an internal audit department.

Unlike Savage's procedures, however, Thomas and her assistant:

  1. Supervise construction,
  2. Maintain the physical inventory,
  3. Receive manufacturing job bids,
  4. Approve all bid updates,
  5. Purchase materials,
  6. Contract shipping needs,
  7. Bill the customer, and
  8. Collect payments.
  • With Savage's approval, Thomas has asked the internal auditor not to interfere with her busy schedule.

Question 1: In the current way of doing things, what are potential frauds that may happen? Suggest several improvements to reduce the risk of fraud and improve internal controls? How would you implement these improvements?

Reference no: EM132466124

Questions Cloud

What is the cost of common stock : The risk-free rate is 4.9%, the market risk premium is 9%, and the stock's beta is 1.11. What is the cost of common stock? Use the CAPM Equation.
Provide for the expenses of a client estate : How life insurance can be used to provide for the expenses of a client's estate without creating incidents of ownership or the insurance policy becoming part
Estimate a venture sustainable growth rate : Use the following information to estimate a venture's sustainable growth rate: Net income = $200,000; Total assets = $1,000,000; equity
UCBP4006 Management Accounting Assignment : UCBP4006 Management Accounting Assignment Help and Solution - University of Cumbria, UK. Analyse costing still has an important role to play for Avitex limited
What are potential frauds that may happen : In the current way of doing things, what are potential frauds that may happen? Suggest several improvements to reduce risk of fraud and improve internal control
Calculate profit or loss should exercise before maturity : Calculate your profit or loss should you exercise before maturity at a time when the euro is traded spot at the following?
What is the accounting break-even level of sales : What is the accounting break-even level of sales if the firm pays no taxes?
Self-driving vehicles as disruptive technology : Self-driving vehicles as disruptive technology. You should begin your paper by summarizing what is currently known about disruptive innovations and effects
What is cumulative cash flow for first year : What is cumulative cash flow for first year?What is the Operational Cashflow for first year?Investment=2000,00,Revenue = 950,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a well-written memorandum to your senior manager

Prepare a well-reasoned, well-written memorandum to your senior manager addressing the appropriate issues for consideration and then make a recommendation for the best legal structure for Jim's business.

  Estimate production and materials requirements

What production level next year will be required to meet the targets

  Prepare a statement of owner equity

Prepare a statement of owner's equity. (List items that increase owner's equity first.) Prepare an unclassified balance sheet

  Granger company had 180000 in sales on account last year

granger company had 180000 in sales on account last year. the beginning accounts receivable balance was 10000 and the

  Calculate the cash that healthmart expects to collect

Calculate the cash that HealthMart expects to collect in April, May, and June 2018 from sales and service revenues. Show calculations for each month.

  Determining the autoregressive model

Suppose an autoregressive model is used for data in which quarterly sales in 2005 were: 1.9, 1.7, 2.2, and 2.3 ($Billion).

  The expected average rate of return for a proposed

the expected average rate of return for a proposed investment of 600000 in a fixed asset with a useful life of four

  How large must single deposit today into an account paying

How large must the single deposit today into an account paying 8% annual interest be to provide for full coverage of the anticipated budget shortfalls?

  What discount rate vestor should use to evaluate facility

Determine what discount rate (WACC) Vestor should use to evaluate the warehousing facility project. Assess whether Vestor should make the warehouse investment.

  Compute the lower-of-cost-or-market valuation

Compute the lower-of-cost-or-market valuation for Sadowski inventory

  Grant desires a 10 rate of return on its investments

grant leasing company agrees to lease machinery to jackson corporation on january 1 2013. the following information

  What is the total amount of investment-related income

What is the total amount of investment-related income that should be reported in the 2016 income statement

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd