Essays on Fraud Examination Issues Assignment

Tags: Fraud
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The paper "Fraud Examination Issues" is a good example of a business assignment.   Question 1: Jefferson Retailers, in an effort to minimize the bad debts, should ensure that proper authorization policies are adhered to at all times. For this case, the managers should ensure that they review and evaluate requests made for large amounts of goods on credit sales. Subsequently, they should ensure that newer credit customers are approved before they can access any form of service beforehand (Carpenter & Reimers, 2013). Question 2: The Company should ensure its operations adheres to the principle of segregation of duties and thus, allow for independent and non-interfered checks on performances (Carpenter & Reimers, 2013).

For this case, it is recommended that other personnel, probably not related to the accounting department, should be tasked with the responsibility of conducting bank reconciliation activities within the business. Question 3: In order to contain such situations as those exhibited by the theft of inventories, the business should advocate for segregation of personnel duties and also, establish independent forms of checks. Following this case, the numerous functionalities existing within the operations of the company should be tasked with different individuals.

This is ascertained with the fact that in event that different individuals are tasked with either record keeping and handling of physical inventories, then the chances of either of them engaging in theft activities will be greatly curtailed for that matter. In regards to independent checks being conducted, numerous test counts should be conducted spontaneously on any record-keeping activities of the business (Abdullatif, 2013). Question 4: In order to curtail issues arising with late reporting of shipments, a substantial number of records and documents should be provided at all times.

Effective formatting should be allowed for the purpose of handling shipment activities in a timely and effective manner. Case 4 Question 1: For this case, Ruth Mishkin perceived opportunities rested with the fact that she was an already trusted employee of the company. As a result of the trust awarded to her, she was made in charge of affecting bills, balancing necessary accounts and also, handled engaged in activities of cash management of the firm as a whole (Ference, 2014). Question 2: Ruth Mishkin pressure to commit fraud arose out of the fact that she was already addicted to gambling activities.

Thus, she perceived the need to engage in fraud for the purpose of receiving substantial amounts of money for which she could use later for her gambling activities. Question 3: Since she was already enjoying great autonomy in her being trusted by a higher authority within the firm, her supervisor put her in charge of paying company’ s bills, balancing its immediate bank accounts and also, handling of cash management activities. It is therefore perceived that the lack of segregation of duties provided a formidable chance for her to carry on with the fraud activities altogether. Question 4: Whenever an individual being is highly addicted to such illegal activities as gambling, they are not left with a chance to second-think thus are prone to succumb to immediate pressures around.

Given the intense level of pressure around, it only takes a little level of chance to access funds for an individual like Ruth through engaging in fraudulent activities.


Abdullatif, M. (2013). Fraud Risk Factors and Audit Programme Modifications: Evidence from Jordan. Australasian Accounting Business & Finance Journal, 7(1), 59-78.

Carpenter, T. D., & Reimers, J. L. (2013). Professional Skepticism: The Effects of a Partner's Influence and the Level of Fraud Indicators on Auditors' Fraud Judgments and Actions. Behavioral Research in Accounting, 25(2), 45-69.

Coram, P., Ferguson, C., & Moroney, R. (2008). Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud. Accounting & Finance, 48(4), 543-559.

Ference, S. (2014). Failure to detect theft and fraud: It's not just an audit issue. Journal of Accountancy, 217(2), 1-2.

Hammersley, J. S., Johnstone, K. M., & Kadous, K. (2011). How Do Audit Seniors Respond to Heightened Fraud Risk? Auditing, 30(3), 81-101.

Lennox, C., & Pittman, J. A. (2010). Big Five Audits and Accounting Fraud. Contemporary Accounting Research, 27(1), 209-247.

Tušek, B., & Klikovac, A. (2012). Corporate governance practices in fraud prevention and detection - empirical evidence from Croatia. International Journal of Management Cases, 14(3), 59-71.

Todd DeZoort, F. F., Harrison, P. D., & Schnee, E. J. (2012). Tax Professionals' Responsibility for Fraud Detection: The Effects of Engagement Type and Audit Status. Accounting Horizons, 26(2), 289-306.

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