What are the two man areas in how to prevent fraud within an organization? What

Question

What are the two man areas in how to prevent fraud within an organization? What are the four elements under each of those two areas?

List at least four different common internal control fraud symptoms which can appear within an organization.

List the calculation for each of the six common ratios used to investigate fraud and analyze financial statements. What is the vertical analysis in regards to these ratios being applied to the financial statements? What are the four standard financial statement (a review from your first accounting class)?

Explanation / Answer

Protect yourself against fraud with access to information from other lenders, as well as available data from TransUnion’s entire network of customers

A system of internal control refers to the process by which organizations maintain environments that encourage incorruptibility and deter fraudulent activities by management and employees. An organization’s components of internal control are evaluated during the planning phase of an independent financial statement audit. The results of the evaluation directly influence the auditor’s level of detailed testing. To reduce detailed testing, and perhaps the audit fee, organizations implement common features of a proper internal control system

On its balance sheet, Maxidrive overstated the economic resources it owned and understated its debts to others.

On its income statement, Maxidrive overstated its ability to sell goods for more than the cost to produce and sell them.

On its statement of retained earnings, Maxidrive overstated the amount of income it reinvested in the company for future growth.

On its statement of cash flows, Maxidrive overstated its ability to generate from sales of disk drives the cash necessary to meet its current debts.

These four financial statements are the basic statements normally prepared by profit-making organizations for use by investors, creditors, and other external decision makers.

The four basic statements summarize the financial activities of the business. They can be prepared at any point in time and can apply to any time span.Like most companies, Maxidrive prepares financial statements for investors and creditors at the end of each quarter and at the end of the year.

Hundreds of millions of dollars are lost each year due to fraudulent originations that lenders cannot detect. You’re not alone, but you also cannot fully and successfully fight this growing problem alone. The more pertinent information you have access to and the more entities collectively analyzing, reviewing and reporting suspect behavior, the better chances everyone has of protecting their organizations, customers and bottom lines.

The Fraud Prevention Exchange is an innovative solution that helps recognize fraudulent identities and behavior before margins are impacted. Exchange members share select transaction data during the application process and certain outcomes from their verification activity. Indications of potentially fraudulent activity and reported fraud are carefully monitored to alert members when they are exposed to potentially fraudulent activity. A private collaboration between lenders sharing application velocity and known fraud data for common interests in reducing losses.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.