User Account

All Pages

Why might control procedures listed in this chapter

Assignment Help Accounting Basics
Reference no: EM132694524

Problem - A former chairman, CFO, and controller of Donnkenny, Inc., an apparel company that makes sportswear for Pierre Cardin and Victoria Jones, pleaded guilty to financial statement fraud. These managers used false journal entries to record fictitious sales, hid inventory in public warehouses so that it could be recorded as "sold," and required sales orders to be backdated so that the sale could be moved back to an earlier period. The combined effect of these actions caused $25 million out of $40 million in quarterly sales to be phony.

Required -

a. Why might control procedures listed in this chapter be insufficient in stopping this type of fraud?

b. How could this type of fraud be stopped?

Reference no: EM132694524

Questions Cloud

Make the entry to record the cash receipts and cash sales : The amount indicated by the cash register total was $18,400. Make the entry to record the cash receipts and cash sales
Summarize all costs of production in a production cost : Summarize all costs of production in a Production Cost Sheet format. You should show number of pieces in detail and show totals for all parts
Find arithmetic and geometric returns for the stock : What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal pla
What is the market requiring as a return : If dividends are expected to grow at a constant rate of 4% indefinitely, what is the market requiring as a return on this company's stock?
Why might control procedures listed in this chapter : Why might control procedures listed in this chapter be insufficient in stopping this type of fraud? How could this type of fraud be stopped
Eligibility process for special education services is unique : Each student who participates in the eligibility process for special education services is unique.
How can sales clerks employed at Ramona Clothing : How can sales clerks employed at Ramona's Clothing use the store's return policy to steal money from the cash register
Find difference in current market prices of the two bonds : If the nominal required rate of return, is 12%, semiannual basis, for both bonds, what is the difference in current market prices of the two bonds?
Make the budgeted balance sheet for hugo medical supply : Make the budgeted balance sheet for Hugo Medical Supply at April 30. Show separate computations for cash, inventory, and owners' equity balances.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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