Financial Statement Fraud

The purpose of this paper is to identify potential financial communicatory fraud schemes at Apollo situation and describe the type of evidence to look for to determine whether fraud is occurring, and to finally outline how the congenital procedures previously identified will be used to analyze potential schemes. Potential financial statement fraud schemes afterwards reviewing the audit inquiry response from Lawyers R Us, LLC, it has been determined that the up-to-the-minute litigant Apollo lieu is involved in could result in as much of a loss as $10,000,000, with sub judice fees considered. This amount was not accrued for as a liability. aft(prenominal) reviewing the tour card meeting minutes, two related-party transactions were discovered. Josephine Mandeville is an outside embodiment up member and audit committee member. She was hired and paid $200,000 for her consulting on the new computer equipment purchase and installation that $1,000,000+. This stallion cost, including Mandevilles consulting fee, was capitalized. Additionally, a $1,000,000 loan was made to the CEOs own(prenominal) secretary with a 1% interest rate and a maturity date in 37 days. Hiring Ms.

Mandeville and making this respectable loan were approved by the come along, but it is uncertain whether the board is providing effectively overseeing the financial reporting process and internal controls as it pertains to related-party transactions. After reviewing the accounts receivable aging and accounts receivable confirmations, it was discovered that Apollo Shoes has $21,660,477.61 that is considered past due, or 60 or more ! years outstanding. This amount includes $14,784,144.03 owed by Mall-Wart. Mall-Wart entered into a voluntary bankruptcy in early November and made Apollo aware of this. Apollo subsequently sent roughly other $5m of fixs that Mall-Wart claims they didnt place over and learned an redundant receivable. Consequently, Apollo exactly has a $1,262,819.88 allowance for bad debt. Apollos decisiveness to record the revenue for the shoes...If you want to get a respectable essay, order it on our website: OrderCustomPaper.com

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