Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you were asked to investigate extreme high, unexpl

You were asked to investigate extreme high, unexplained merchandise shortages at a department store chain. You...

90.2K

Verified Solution

Question

Accounting

You were asked to investigate extreme high, unexplainedmerchandise shortages at a department store chain. You found thefollowing:

  1. The receiving department supervisor owns and operates aboutique carrying many of the same labels as the chain store. Thegeneral manager is unaware of the ownership interest.
  2. The receiving supervisor signs receiving reports showing thatthe total quantity shipped by a supplier was received and thendiverts 5% to 10 % of each shipment to the boutique.
  3. The store is unaware of the short shipments because thereceiving report accompanying the merchandise to the sales areasshows that everything was received.
  4. Accounts Payable paid vendors for the total quantity shown onthe receiving report.
  5. Based on the receiving department supervisor’s instructions,quantities on the receiving reports were not counted by salespersonnel.

Required:

Classify each of the five situations as a fraudulent act, afraud symptom, an internal control weakness, or an event unrelatedto the investigation. Justify your answers. (CIA Examination,adapted)

Answer & Explanation Solved by verified expert
3.7 Ratings (289 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

4 1 point What is the IQR of the set of the data below 95...

Medical Sciences
1.2K views

Covid-19 virus is primarily affecting certain respiratory organs and causing tissue damage. From your study in...

Chemistry
1.2K views

* Calculate the concentration of argon in the Pacific Ocean given that the partial pressure of...

Psychology
1.2K views

What are the main themes highlighted in the film Killer of Sheep?

General Management
1.2K views

What's your take on the argument of health care using insurance vs government-funded as a right?

Basic Math
1.2K views

A simple random sample of size n is drawn from a population that is normally distributed....

Basic Math
1.2K views

The length of a rectangle is 5 yd more than twice the width x. The...

Accounting
1.2K views

(35 marks) PENULTIMATE began business on December 1, 2019. Its December transactions are: Dec. 1...

Accounting
1.2K views

Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March...

Accounting
1.2K views

Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen...

Accounting
1.2K views

Cost benefit analysis of a new payroll system

Accounting
1.2K views

In addition to those accounts listed on the trial balance, the chart of accounts for...