<\/p>\n
Question 5<\/p>\n
While performing an audit of TCC Corporation, the audit
\nteam noticed something that didn\u2019t look right. The company\u2019s receivables aging
\nreport showed that bank loan eligible receivables were approximately $91
\nmillion. The audit team calculated the bank loan eligible receivables to be
\napproximately $50 million. The client didn\u2019t identify specific accounts in
\nwriting off bad debts, there was extremely slow credit memo processing, and
\nitems that management had not focused on remained uncollectible and ineligible
\nfor financing. In addition, over the last two years, the company\u2019s credit
\ndepartment has had unusually high turnover\u2014four different people had held the
\ncredit manager position under an intimidating CFO. The cur- rent credit manager
\nwas a friend of the CFO and had worked with him at a previous company. After
\nlooking at some invoices and asking about customer information to confirm, the
\ncredit manager admitted to creating false documents and arranging fictitious
\nsales with clients all with the knowledge of the CFO. <\/p>\n
1.What are some of the red flags that
\npoint to the possibility of fraud?<\/p>\n
2. What will you say was the main problem in this
\ncase that allowed the fraud to occur?<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Question 5 While performing an audit of TCC Corporation, the audit team noticed something that didn\u2019t look right. The company\u2019s receivables aging report showed that bank loan eligible receivables were approximately $91 million. The audit team calculated the bank loan eligible receivables to be approximately $50 million. The client didn\u2019t identify specific accounts in writing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/181871"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=181871"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/181871\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=181871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=181871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=181871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}