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KiRa [710]
2 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]2 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.

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You plan to retire in 19 years. At the point of retirement, you want to be able to withdraw 32,877 at the end of each year forev
xz_007 [3.2K]

Since no any further contributions will be made to the retirement fund, the amount you need today is $172,014.

<h3>Calculation of Present Value and Present Value of a Perpetuity</h3>

The first step is to calculate the present value (PV) of the contribution at the point of retirement in 19 years using the formula for calculating the present value (PV) of perpetuity as follows:

PV in 19 years = CF / R ............................................. (1)

Where;

PV in 19 years = Present value (PV) of the contribution at the point of retirement in 19 years = ?

CF = Cash flow or yearly expected withdrawal = $32,877

R = Rate of return after retirement = 5.02%, or 0.0502

Substituting the values into equation (1), we have:

PV in 19 years = $32,877 / 0.0502 = $654,920.3187251

The amount you need today can be calculated using the present value formula as follows:

PV = FV / (1 + r)^n ……………………………………………. (2)

Where;

PV = Present value or the amount you need today = ?

FV = Future value or PV in 19 years = $654,920.3187251

r = rate of return prior to retirement = 7.29%, or 0.0729

n = number of years = 19

Substituting the values into equation (2), we have:

PV = $654,920.3187251 / (1 + 0.0729)^19 = $654,920.3187251 / 3.80737505803714 =  $172,013.607470218

Rounding to the nearest dollar, we have:

PV = $172,014

Therefore, the amount you need today is $172,014.

Learn more about present value here: brainly.com/question/17322936.

3 0
2 years ago
What does CPI stand for and what is it used to measure?​
aleksklad [387]

Answer:

please give me brainlist and follow

Explanation:

Consumer Price Index

The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

8 0
2 years ago
slader Each month Leo must make copies of a budget report. When he uses both the large and the small copier, the job takes 30 mi
storchak [24]

Based on the time it takes Leo when he uses two machines, the length of time it will take if the large copier is broken is <u>75 minutes. </u>

<h3>How long will it take if the large copier is broken?</h3><h3 />

This can be found by the formula:

= 1 / ( (1 / time taken with both copiers) - (1 / time taken with large copier) )

Solving gives:

= 1 / ( ( 1 / 30) - (1 / 50))

= 1 / (1 / 75)

= 75 minutes

Find out more on budget reports at brainly.com/question/25812320.

7 0
2 years ago
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20
Andrew [12]

Answer:

b. $102

Explanation:

Data provided as per the question below:-

Cost of basket in 2014 = $51

Cost of the basket in base year = $50

The calculation of the value of the CPI is shown below:-

Value of the CPI = (Cost of a basket in 2014 ÷ Cost of a basket in the base year) × 100

($51 ÷ $50) × 100

= $102

Therefore for computing the value of CPI we simply applied the above formula.

7 0
3 years ago
Suppose the current exchange rate for the Polish zloty is Z 2.92. The expected exchange rate in three years is Z 3.00. What is t
djyliett [7]

Answer:

The answer is 91% or Supposed to be 0.00905

Explanation:

We can use the relative purchasing power parity equation:

Ft = S0 × [1 + (hFC – hUS)]t

We can find:

Z 3.00 =Z 2.92 [1 + (hFC – hUS)]3    

hFC – hUS = (Z 3.00/Z 2.92)1/3 – 1

hFC – hUS = .00905

The Inflation in Poland is expected to exceed that in the U.S. by 91% over this period.

3 0
3 years ago
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