1) Who is Responsible?
Who is ultimately responsible for detecting fraud or criminal activity within an organization?
What is the fiduciary duty of every employee to an organization in terms of fraud?
Define a whistleblower and pinpoint 2 current laws protecting whistleblowers. Please state if you believe whistleblowers are actually protected in today's society.
2) Fraud Detection
Research and define the common ratios (listed directly below) which may be used to analyze financial statements when attempting to detect fraudulent activity. Discuss how each of these 4 ratios can be used to detect fraud. Be sure to use and cite one resource for the initial threaded discussion. The resource may include the textbook used in this class.
1st Ratio: Current Ratio
2nd Ratio: Bad Debt Percentage Ratio
3rd Ratio: Sales Return Percentage
4th Ratio: Cost of Goods Sold Percentage
3) Fraud at Phar-Mor
Discuss the accounting fraud case of the retail store Phar-Mor. Specifically discuss the role of the CFO's, Patrick Finn, role in the accounting fraud.
What specific steps did Patrick Finn and CEO, Mickey Monus, take to mislead investors regarding the financial health of the company
Please use either the course textbook or an outside source when completing this discussion. Cite the source using the APA formatting guidelines.
4) Forensic Accounting
Conflicts of Interest
What is conflict of interest in terms of Accounting Firms offering consulting services to businesses as well as external auditing services?
What law prevented this?
What accounting fraud case triggered this law to be drafted and implemented?
5) Concealing Assets
What are some of the most common ways that fraud perpetrators conceal and transfer assets or income during bankruptcy and divorces?
How can these frauds be detected?
6) Get Rich or Die Trying
Use a source outside the materials provided for this course to research information about the "Get Rich or Die Trying" scheme designed and carried out by Albert Gonzalez.
If you were an officer in at Heartland, describe three steps you would take to protect your customer's credit card information in the future? (Be sure to include a reference in your initial post).
7) Ponzi Scheme
How might investors protect themselves from being the victims of a Ponzi Scheme?
What are the controls and triggers which can be implemented to ensure your investments and assets are being managed in your best interest?