Financial Statement Fraud Schemes Essay Example | Topics and Well Written Essays - 1000 words

Financial Statement Fraud Schemes - Essay Example This case involves several characters, namely; Mr. Karina Ramirez, the director internal auditor at Apollo Shoes Company, the engagement manager Mr. -Darlene Ward law, Mr. Arnold Anderson the engagement partner and the intern Bradley Crumpler (Timothy, Loretta, & Kenneth, 2011). The communication in this company entails the use of email messages because physical interaction is limited between the employees (Timothy, Loretta, & Kenneth, 2011). Based on this case it can be scrutinized that the company accountants has not been ensuring that all items are properly recorded for easy audit. Additionally, the company does not have enough experts to carry out audit work (Timothy, Loretta, & Kenneth, 2011). This can be scrutinized with a scenario where an intern was incapable of making necessary entries in the books of accounts as other members were busy doing other duties (Timothy, Loretta, & Kenneth, 2011). Poor financial management has subjected customers to financial difficulties and this has made the company fail to accomplish goals and objectives. This can be substantiated by in the director statement when he asserted that the company sales was not strong and therefore there was a need to relook on the marketing plan(Timothy, Loretta, & Kenneth, 2011). 1. Identify potential financial statement fraud schemes would likely be present in Apollo Shoes Company The financial statements fraud schemes has been presented in the Apollo’s Company case in numerous ways. There have been some underlying discrepancies between the figures in the financial statement and director’s reports (Timothy, Loretta, & Kenneth, 2011). For example the audited financial statement indicated that Inventories were valued at $18,825,205.24 while unaudited financial statements indicated that inventories were valued at $$67,424,527.50 (Timothy, Loretta, & Kenneth, 2011). This shows that there was a discrepancy of $48599322.26 obtained by finding the difference between the unaudited and audited financial figure which is a clear indication that fraud was taking place (Timothy, Loretta, & Kenneth, 2011). Additionally, inventories were valued at $18,825,205 in the year 2010 while reserves were valued at $3,000,000 (Timothy, Loretta, & Kenneth, 2011). This shows that there was an approximate of fifteen percent reserves in the company. On the contrary, inventories were valued at $67,424,527 in the year 2011 while company reserves were valued at $867,000 indicating that there were only 1.2% reserves (Timothy, Loretta, & Kenneth, 2011). The above discrepancy was so wide and therefore it is a clear sign that fraudulent acts were taking place in Apollo’s company (Timothy, Loretta, & Kenneth, 2011). In above connection, it can be scrutinized that the company did not established measures to safe guard shareholders interest. For instance; between 2009 and 2010, revenues were reported to increase from 10% to 15 % respectively and that customers were allotted a fair shar e according to the directors’ report (Timothy, Loretta, & Kenneth, 2011). However, this was not the case because the figures could not be reflected in the books of accounts. Additionally, it has been reported that customers were undergoing via financial difficulties (Timothy, Loretta, & Kenneth, 2011). 2. Describe the types of evidence you would look for to

Personal Reflections - Chapter 7 Assignment Example | Topics and Well Written Essays - 1000 words

Personal Reflections - Chapter 7 - Assignment Example This also creates a clear picture on the culture of people and how they inter-relate to each other creating a good social relationship. In my field study I decided to take a keen look at the interactions of the people at the working field depending on their groups. The age group of people also varies from one person to another because people with the same age group are always seen to be together. This depends on the age sets of the people in the field of working. Young people at the age of 18 to 20 years are always together working while communicating at the same tone of information. They always share the same information and chat mostly about current the current world while having high expectations. Others communicate according to the ethnic group. People with the same ethnicity are always together communicating their native language and they normally get along very well. They even have same ethnical characters and they eat a common meal. As I interacted with this group, I realised that most of them love their culture and they like remembering the norms. They also favor themselves according to their ethnical culture. It is easy for them to book for each other their favorite’s meals and they normally understand each other very well. The gender group is another group of the workers who come together to socialize and interact freely. For the men, they always share taught that are muscular and they have a limit to their communication. They are really eager to understand the feminine and they educate each other accordingly. For the female group they communicate a lot while having no limit. They share their secrets and they expose themselves when they are together. As I intera cted with them I noticed that most of them like to communicate while comparing to each other’s life experience. They are also carried away easily and they copy