7 You are a Fraud Examiner. You are investigating a company. Company management has two vendors...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
7 You are a Fraud Examiner. You are investigating a company. Company management has two vendors that supply merchandise to the company. You determine that company data can be expected to conform - at least approximately - to Benford's Law. You then decide to perform the Benford's Law First Digit test on the two vendors to decide which vendor to focus on. Which vendor should you focus on as the more likely vendor involved in fraud? a. Vendor 1 b. Vendor 2 c. Impossible to say; either of the Vendors is equally suspected of involvement in fraud based on Benford's Law analysis 3.5 3 2.5 2 1.5 1 0.5 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 1 is dark bars. .ul.. 1 2 3 4 5 6 7 8 가로 (항목) 축 주 9 3.5 3 2.5 2 1.5 1 0.5 0 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 2 is dark bars. l... 1 2 3 4 5 40 그림 영역 0 7 You are a Fraud Examiner. You are investigating a company. Company management has two vendors that supply merchandise to the company. You determine that company data can be expected to conform - at least approximately - to Benford's Law. You then decide to perform the Benford's Law First Digit test on the two vendors to decide which vendor to focus on. Which vendor should you focus on as the more likely vendor involved in fraud? a. Vendor 1 b. Vendor 2 c. Impossible to say; either of the Vendors is equally suspected of involvement in fraud based on Benford's Law analysis 3.5 3 2.5 2 1.5 1 0.5 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 1 is dark bars. .ul.. 1 2 3 4 5 6 7 8 가로 (항목) 축 주 9 3.5 3 2.5 2 1.5 1 0.5 0 Benford's Law: 1st digit conformance is the red line (30%, 18%, 12%, 10% etc.) Actual 1st digit frequency Vendor 2 is dark bars. l... 1 2 3 4 5 40 그림 영역 0
Expert Answer:
Answer rating: 100% (QA)
C Impossible to say either of the Vendors is equally suspecte... View the full answer
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Posted Date:
Students also viewed these general management questions
-
ABC Limited list of balances on December 31, 2019 $00 Sales 727,911 Cost of sales 394,481 Distribution costs 70,262 Administrative expenses 90,530 Other operating expenses 32,150 Other operating...
-
You are a fraud examiner who has been hired by Bellevue Company to carry out an investigation. Bellevue is a beverage company that has experienced increased shipments of beverages but no increase in...
-
You are a fraud examiner and have been asked by your boss to prepare and deliver a training class to the entire accounting department on the interrelationship between auditing, fraud examination, and...
-
Which of the following is indeterminate at x = 1? x + 1 x-1' 2-1 x + 2 x - 1 x+3-2' x + 1 x+3-2
-
Use Adaptive quadrature to approximate the following integrals to within 105. (sinx +cosx) dr (x sin 4x) dx x sin 4x dix (6 cos 4x 4sin 6x)e dx
-
The elementary, irreversible gas-phase reaction A B + C is carried out adiabatically in a PFR packed with a catalyst. Pure A enters the reactor at a volumetric flow rate of 20 dm3/s, at a pressure...
-
A gasoline engine consumes 8 litres of fuel per hr. having specific gravity of 0.75 while it develops \(25 \mathrm{~kW}\) power. If the C.V. of fuel used is \(44200 \mathrm{~kJ} / \mathrm{kg}\),...
-
St. George Inc. reported $711,800 net income before tax on this years financial statement prepared in accordance with GAAP. The corporations records reveal the following information: Four years ago,...
-
Del Gato Clinic's cash account shows an $15,282 debit balance and its bank statement shows $13,903 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $1,596. b....
-
Annie opened a wholesale clothing business on 1 August 206. She received the following documents during August 206: Invoices August 4 From Sue, for goods, list price $1,960 less 25% trade discount 15...
-
A warehouse worker must push a hand cart loaded with cases of textbooks. The total weight of the cart and textbooks is 480 lbs. If the worker weighs 180 lbs. and a horizontal force of 80 lbs must be...
-
Discuss the customer's role as a contributor to service quality and satisfaction. Describe a time when you played this role. Discuss the impact of this customer role on service firms. In your...
-
WORK the children are in high school and he will be 45 years old at that time. They have estimated that Sam and children would still need an income of $6000 per month after Mark's death. How much...
-
Crystal Limited manufactures photo frames. The photo frames are assembled in the Frame Division. The half-finished frames are then transferred to the Finishing Division, where the glass and other...
-
search box near the bottom of the screen. In the search box, instruct it to draft a contract between RJ Hunt, seller, and DJ March, buyer, for the sale of a house at 123 Jackson St., Macomb, IL...
-
Many whites and males believe there is "reverse discrimination" and, as a result, they receive fewer opportunities than minorities and women. Is this true? Why and Why not?
-
9. Consider the equations y = 2x and y = -x+3. Part A Which graph could be used to approximate the solutions of the given system of equations?
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
1. What fraud symptoms are present in this scenario? 2. Is it possible to know from the information above that Mark is committing fraud at the credit union? 3. What is one reasonable action the...
-
1. Based on this information, do you believe Publishers Clearing House has committed fraud? 2. Why or why not? A recent newspaper contained the following story: Publishers Clearing House agreed to...
-
In your own words describe the purpose of the ACFE.
-
Harry wants to contribute either \($6,500\) (BT\($)\) to a traditional deductible IRA or \($6,500\) (AT\($)\) to a Roth IRA. His current tax rate is 30% for ordinary income and 15% for capital gains....
-
The XYZ Partnership reports the following items during 2022: Calculate ordinary income (or loss) by completing page 1 of Form 1065, and complete Schedule K (Partners Shares of Income, Credits,...
-
Rita, a calendar year taxpayer, is an employee of the RST Partnership, which has a June 30 year-end. The partnership pays Rita a salary of 2,500 per month for the period January 1 through June 30,...
Study smarter with the SolutionInn App