You are auditing Riverview Medical Center for its fiscal year ending December 31, 2010. During your tests of account balances you noted the following:
1. The November revenue journal indicates that patients were billed $150,000 and this amount was posted as a debit to Accounts Receivable and a credit to Revenues. In fact, the footing of the journal shows that the correct amount of patient billings was $155,500.
2. You prepared a bank reconciliation at year-end and found that an $8,000 check had been omitted from the list of outstanding checks. The check had been issued and recorded during October but had not yet cleared the bank.

Based on your brainstorming about possible frauds, what could these indicate about an attempted concealment?

  • CreatedJanuary 21, 2015
  • Files Included
Post your question