Report on Financial Statement Fraud Scheme Case Study: the Importance of Timing
ACC/556
Professor
University of Phoenix
December 19, 2011
Memo
To: The Management
From: Forensic Auditor
Date: 12/19/2011
Subject: Case Study on the Importance of Timing and Financial Statement Fraud Scheme As our company is in process of conducting investigation to detect any financial statement fraud or abuse, I have come across the case where expenses were recorded in the financial statement under the period it was disbursed to vendor and actual services occurred in next or other financial year period. It’s against the regulation of SEC and GAAP guidelines. In this particular case the repair were completed in current …show more content…
Other factors that aided in this investigation are from checking cash, and disbursement journal entries to be dated with the date of the check. The related monthly general ledger summary entries shall carry the date of the month summarized. Procedures that need to be implemented to ensure that fraudulent processing of vendor invoices does not exists would consist of: • Only original invoices being processed for payment
• Proper authorization obtained for price differences on