As a certified fraud examiner, Laura Wu has been retained by an attorney to investigate an overstatement
Question:
a. Would confirmations help her gather evidence in preparing for prosecution of financial statement fraud? Why?
b. Laura employed a novice fraud examiner to help her in the investigation. After an employee of Unlimited Growth had prepared the confirmation letters (using the positive “in-blank” type), her novice fraud examiner reviewed the letters and asked another employee (who had worked at Unlimited Growth for 12 years and had a character that was beyond reproach) to mail them for him. The confirmations were all returned, and all recipients had indicated that the information provided in the letter agreed with their records. Should Laura be concerned about the process her fraud examiner used and the results?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Forensic Accounting and Fraud Examination
ISBN: 978-0078136665
2nd edition
Authors: William Hopwood, george young, Jay Leiner
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