Explore BrainMass
Share

Explore BrainMass

    Financial Statement Fraud Scheme..

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Use the attached Case Study

    Write a letter or memo in no more than 1,050 words to the organization's management and communicate the examination findings explained in the case. Include the following in your letter or memo:

    •A summary of the matter under investigation
    •The scope of the examination
    •A summary of conclusions
    •The factors that aided the examination
    •The limitations on the examination

    © BrainMass Inc. brainmass.com October 10, 2019, 8:14 am ad1c9bdddf
    https://brainmass.com/business/forensic-accounting/financial-statement-fraud-scheme-614961

    Attachments

    Solution Preview

    The response addressed the query is posted in 1153 words with APA Reference.

    Memorandum

    To: The management of the company

    From: Internal Auditor

    Date: December 07, 2015

    Subject: Report on Financial Statement Fraud Scheme

    This memorandum will help the management of the company to find out the concealed frauds in the financial statements and safeguard the assets of the company.

    //The investigation into the affairs of the company is necessary to find out fraud and manipulations in the books of accounts. In this context, in the following section of the paper, a summary of the matter under investigation, scope and factors that aided the examination have been discussed.//

    Summary of the Matter under Investigation

    The matter being investigated in the present case is related to the fraudulent financial reporting. In the present case, the expenditure incurred on repair and maintenance of the plant has been investigated to find out the truthfulness of the payments. The timing of payments affects the company's profits and losses in the form of interest gain and loss; therefore, the issue of timing of payments has been the center point of the investigation in the present case. Further, the internal controls on the activities and proper documentation and authorizations for the payments made for expenses have also been investigated (Case Study).

    Scope of the Examination

    The internal auditor has been deputed to carry out the investigation and examine the repair and maintenance expenses thoroughly in regards to the timing of payments and legitimacy of such payments. The scope of investigation covers the examination of the all the expenses incurred for repair and maintenance of the plant such as furnace replacement, purchasing of store items, and payments made to the contractors for repair and maintenance. The scope of ...

    Solution Summary

    The expert examines the financial statements for fraud schemes. The response addressed the query is posted in 1153 words with APA Reference.

    $2.19