Financial Statement Fraud

The purpose of this paper is to set potential pecuniary archives juke schemes at Apollo agency and describe the type of enumerate to look for to determine whether fraud is occurring, and to finally outline how the inwrought procedures previously identified ordain be used to take apart potential schemes. Potential financial statement fraud schemes later reviewing the audit inquiry result from Lawyers R Us, LLC, it has been determined that the modish litigant Apollo topographic point is snarly in could result in as much of a loss as $10,000,000, with profound fees considered. This amount was not increase for as a liability. aft(prenominal) reviewing the see card meeting minutes, devil related-party transactions were discovered. Josephine Mandeville is an outside act upon up member and audit committee member. She was hired and paying(a) $200,000 for her consulting on the new calculating machine equipment purchase and installation that $1,000,000+. This perfect cost, including Mandevilles consulting fee, was capitalized. Additionally, a $1,000,000 give was made to the CEOs own(prenominal) secretary with a 1% interest rate and a maturity date in 37 eld. Hiring Ms.

Mandeville and making this honorable loan were approved by the advance, but it is uncertain whether the board is providing effectively overseeing the financial account process and internal controls as it pertains to related-party transactions. After reviewing the accounts receivable maturement and accounts receivable confirmations, it was discovered that Apollo Shoes has $21,660,477.61 that is considered past due, or 60 or more years outstanding. This amount includes $14,784,144.03 owed by Mall-Wart. Mall-Wart entered into a voluntary bankruptcy in early November and made Apollo aware of this. Apollo subsequently sent virtually other $5m of fixs that Mall-Wart claims they didnt assign over and learned an additive receivable. Consequently, Apollo exactly has a $1,262,819.88 fitting for bad debt. Apollos determination to record the revenue for the shoes...If you hope to get a liberal essay, order it on our website: Ordercustompaper.com

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