1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KiRa [710]
3 years ago
12

Heavenly Pastries, Inc. Heavenly Pastries, Inc. was founded in 1998 by Gary Houser in Boston, Massachusetts. Over the years, Hea

venly Pastries grew from a small neighborhood shop to a national brand. In 2015 Heavenly Pastries went public. At the time of the public offering, there were 100 stores across the country, employing almost 1,000 employees. Over the next three years, Heavenly Pastries doubled the number of stores and employees. Corporate headquarters, still located in Boston, realized that the accounting information system needed to be upgraded. In May, 2019, the Information Technology Division (IT) was charged with upgrading the payroll software.
The Division consists of two departments, Development and Operations. The Development Department is responsible for the coding and testing of the payroll software; the Operations Department is responsible for the operation and maintenance of the new payroll software. Steven Miller is the IT Division manager. Since he supervises both departments, Steve has global access to all aspects of the payroll software, including employee additions, pay rate changes, and employee benefits changes. Steven Miller has been with Heavenly Pastries for just over one year.
Gary Houser Heavenly Pastries- Information Technology Division
He has been struggling with a gambling addiction for the past five years and has run up considerable debts. Subsequent to turning control of the new payroll software over to the Payroll Department, and before the first payroll was run using the new system. Sarah Cutter, the payroll supervisor, is responsible for updating the new payroll system, inputting employee data (names, Social Security numbers, tax and benefit information) and pay rates. Discuss means more than one or two sentences.
1. The fraud triangle lists three conditions that are usually present when fraud occurs. Discuss the three conditions and if they are present. For each condition, provide examples from the case.
2. List the red flags present that suggest the possibility of frauds and what type of frauds do these red flags suggest?
3. How would the fraud impact the financial statements?
4. Discuss the procedures you would use to detect this fraud.
5. Lastly, discuss the procedures that should be implemented to prevent this fraud.
Business
1 answer:
drek231 [11]3 years ago
3 0

Answer:

1. Three pre requisite of fraud are:

Dishonesty, Opportunity, Motivation.

2. The red flags include,

Gambling habit of Steven Miller.

Global access of payroll software to a single employee.

Lack of segregation of duties.

3. The fraud will deteriorate financial statements and investors will not rely on the company's financial statements.

4. There should be audit of the financial statements, there can be recheck of the data by another employee which is entered into the payroll system, Sarah and Steven work should be segregated with some other employee of different department who rechecks all data of employee and verifies it.

5. There should be segregation of duties, there can be internal controls of the software which may restrict from entering dummy employees, there should be a supervision over Steven since he has gambling background.

Explanation:

There are three pre requisites of fraud which must be present for a fraud. If a fraud occurs in an organization then the reliance of lenders of finance is deteriorated. Steven is an employee who has been with Heavenly pastries for over a year. Since he has a gambling background there might be  dishonesty present and he has access to entire payroll system there is an opportunity for fraud. Steven can be motivated for fraud so to avoid such a case Heavenly pastries should segregate duties of Steven with another employee.

You might be interested in
Obama Company has identified that Bill Clinton’s receivable account of $100 is uncollectible. What is the journal entry needed t
DerKrebs [107]

Answer:

Allowance for Doubtful Accounts 100 Accounts Receivable 100

Explanation:

The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the  trade receivable and utilizes the allowance provided for

<u>When allowance is estimated </u>

Bad Debts (debit)

Allowance for doubtful debts (credit)

<u>When the  actual figure of the amount that have gone wrong is obtained</u>

Allowance for doubtful debts (debit)

Account Receivable (credit)

4 0
3 years ago
When asked to memorize the 15 letters, c i a c b s a b c f b i i r s mary reorganized them into cia, cbs, abc, fbi, and irs. mar
11Alexandr11 [23.1K]
The appropriate response is chunking. Chunking alludes to an approach for making more proficient utilization of here and now memory by gathering data. Piecing separates long strings of data into units or lumps. The subsequent pieces are less demanding to focus on memory than a more extended continuous string of data.
8 0
3 years ago
Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as:
attashe74 [19]

Answer: A just took the quiz

Explanation:

5 0
3 years ago
Which occupation would be least affected by inflation?
nexus9112 [7]
It seems that you have missed the given options for this question, but anyway here is the correct answer. The occupation that would be least affected by inflation would be a doctor in private practice. Inflation is defined as a rise in the general level of prices. Hope this is the answer that you are looking for. 
6 0
3 years ago
Read 2 more answers
Why is the uninoculated control sector relatively unnecessary in this test dnase?
Len [333]
<span>there is typically enough medium that is not cleared to show "no reaction"</span>
7 0
3 years ago
Other questions:
  • The city of Angola, Indiana is considering building a snowmobile trail on the land owned by the city. The life of the project is
    10·1 answer
  • What led to the development of inns in the Middle Ages?
    14·1 answer
  • he employees at Titanium Inc. have the freedom to plan their own schedules and are empowered to make decisions. They also believ
    7·1 answer
  • An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes.​ Specificall
    14·1 answer
  • Suppose a supply shock shifts the aggregate supply curve from AS1 to AS2, and decreases output below full employment. If the Fed
    10·1 answer
  • A typical point-of-sale display features products that are likely to be ___.
    5·1 answer
  • 1. Clark is the kind of manager that values input from his team and likes to involve them in the decision-making process. He pre
    9·1 answer
  • Tyler Weinrich, a single investor in the 15% federal tax bracket, owns 150 shares of Newmont Exploration. The stock has risen fr
    9·1 answer
  • Cannibalization occurs when a producer offers a new product that takes sales away from its existing products
    8·1 answer
  • Which term refers to the accountability of marketing dollars spent on marketing activities?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!