Why might control procedures listed in this chapter

Assignment Help Accounting Basics
Reference no: EM132797870

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.

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: EM132797870

Questions Cloud

Describe the process of decision making and innovation : Describe the process of decision making and innovation? How do companies keep the balance of managing risk while continuously innovating?
Journalize the entry to record cash receipts and cash sales : The amount indicated by the cash register total was $18,400. Journalize the entry to record the cash receipts and cash sales
Explain different types of coq : Explain different types of COQ (cost of quality) and identify that items such as checking labor, set up inspection, and scrap due to design changes are in which
Describe the kind and strategies of control applied : 1. Describe the kind and strategies of control applied by your manager to control the employees' jobs.
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
Did you find identifying the structure of speech difficult : Did you find identifying the structure of the speech difficult? Do you think the organization of the speech you chose to analyze contributed to the.
Motivating professional athletes and workers in business : 1. How could you use expectancy theory to increase your own motivational level?
Role is in the success of a unit-organization : How do you think leaders can build followers and let them know how important their role is in the success of a unit/organization?
How does parents behaviors influence and affect the children : Discuss the different types of parents shown in the video and what parenting style you feel they fit. How does the parents behaviors influence and affect their.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Show a flexible budget for materials and labor

Show a flexible budget for materials and labor for possible production levels of 55,000 and 65,000 units of product

  Produces and sells a single product

Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.

  How much did shareholders initially invest in the business

The company earned $85,500 during the first year, and distributed $26,000 to shareholders as dividends. How much did shareholders initially invest

  The consolidated financial statements

The following events are indicated in note 15 of J. Crew's 10K annual report for the fiscal year ended January 29, 2011, and its 10K was filed on March 21, 2011.

  Calculate Susan realized and recognized gain or loss

Susan owns a car that she uses exclusively for personal purposes. Calculate Susan realized and recognized gain or loss

  Find the true cash balance of osborn

Osborn Company's unadjusted book balance at June 30, 2014 is $15,000. The company's bank statement reveals bank service charges of $75.

  Review problem-construct a road for santa clara county

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020.

  The accuracy of accounting records is enhanced by the

the accuracy of accounting records is enhanced by the integrity of internal controls. comment on this statement and

  How much did total bank reserves rise

How much did total bank reserves rise when this loan was made? Are reserve requirements a factor here

  Hospital and other health care organizations provide

hospital and other health care organizations provide services knowing that they will collected from third-party payers

  What is the expected rate of return on this stock

Rambo Enterprises, Inc. stock has a beta of 1.12. The risk-free rate of return is 2.46 percent and the market risk premium is 5.26 percent. What is the expected rate of return on this stock?

  Reconcile bank statement and account register

Taylor Flowers' bank statement shows a balance of $135.42 and a service charge of $8.00. The account register shows deposits of $112.88 and $235.45 that do not appear on the 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!

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