Maurice Tutor

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Category > Accounting Posted 17 Aug 2017 My Price 13.00

Clever, Inc

Case 1. Clever, Inc., is a car manufacturer. Its 2005 income statement is as follows: Clever, Inc.

Income Statement For the year ended Dec. 31, 2005

Sales revenue $20,000

Less cost of goods sold $10,000

Gross margin $10,000

Expenses $8,000

Net income $ 2,000

Alexander, Inc., is a car rental agency based in Florida. Its 2005 income statement is as follows: Alexander, Inc.

Income Statement For the year ended December 31, 2005

Sales revenue $20,000

Expenses $15,000

Net income $ 5,000

During 2005, both Clever, Inc., and Alexander, Inc., incurred a $1,000 fraud loss. How much additional revenue must each company generate to recover the losses from the fraud? Why are these amounts different? Which company will probably have to generate less revenue to recover the losses?

What clues made Jane believe that fraud was involved?

Why is it important that fraud examiners follow up on even the smallest inconsistencies?

While trying to identify possible suspects, fraud examiners researched personal files of all the employees. What sort of things might the fraud examiners have been looking for to help them identify possible suspects?

Answers

(5)
Status NEW Posted 17 Aug 2017 06:08 PM My Price 13.00

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