You are a forensic accountant and have been engaged to investigate the finances of a company suspected
Question:
You are a forensic accountant and have been engaged to investigate the finances of a company suspected of fraudulent activity. The company's financial records indicate that it incurred expenses of $5,000 for a particular month. However, the records show that the company issued four checks for that amount, which were made out to different payees, including the company owner's personal account. You suspect that the owner may have committed fraud by diverting company funds to his personal account. You decide to investigate further by performing a statistical analysis of the company's expenses.
Using the given information, answer the following questions:
a) Calculate the mean, median, and mode of the expenses for the given month. (5 marks)
b) Calculate the range and standard deviation of the expenses for the given month. (5 marks)
c) Based on your analysis, do you believe the owner committed fraud? Explain your answer. (10 marks)
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston