Financial Statement Fraud Schemes, Apollo Shoes Company Name: Lecturer: Course: Date Introduction Apollo Shoes Company deals with production of various types of shoes that include: common athletics shoes branded as SPOTLIGHT, the Police shoes branded as SIREN and athletes shoes with speakers branded as SPEAKERS shoes (Timothy, Loretta, & Kenneth, 2011)…
This case involves several characters, namely; Mr. Karina Ramirez, the director internal auditor at Apollo Shoes Company, the engagement manager Mr. -Darlene Ward law, Mr. Arnold Anderson the engagement partner and the intern Bradley Crumpler (Timothy, Loretta, & Kenneth, 2011). The communication in this company entails the use of email messages because physical interaction is limited between the employees (Timothy, Loretta, & Kenneth, 2011). Based on this case it can be scrutinized that the company accountants has not been ensuring that all items are properly recorded for easy audit. Additionally, the company does not have enough experts to carry out audit work (Timothy, Loretta, & Kenneth, 2011). This can be scrutinized with a scenario where an intern was incapable of making necessary entries in the books of accounts as other members were busy doing other duties (Timothy, Loretta, & Kenneth, 2011). Poor financial management has subjected customers to financial difficulties and this has made the company fail to accomplish goals and objectives. This can be substantiated by in the director statement when he asserted that the company sales was not strong and therefore there was a need to relook on the marketing plan(Timothy, Loretta, & Kenneth, 2011). 1. Identify potential financial statement fraud schemes would likely be present in Apollo Shoes Company The financial statements fraud schemes has been presented in the Apollo’s Company case in numerous ways. There have been some underlying discrepancies between the figures in the financial statement and director’s reports (Timothy, Loretta, & Kenneth, 2011). For example the audited financial statement indicated that Inventories were valued at $18,825,205.24 while unaudited financial statements indicated that inventories were valued at $$67,424,527.50 (Timothy, Loretta, & Kenneth, 2011). This shows that there was a discrepancy of $48599322.26 obtained by finding the difference between the unaudited and audited financial figure which is a clear indication that fraud was taking place (Timothy, Loretta, & Kenneth, 2011). Additionally, inventories were valued at $18,825,205 in the year 2010 while reserves were valued at $3,000,000 (Timothy, Loretta, & Kenneth, 2011). This shows that there was an approximate of fifteen percent reserves in the company. On the contrary, inventories were valued at $67,424,527 in the year 2011 while company reserves were valued at $867,000 indicating that there were only 1.2% reserves (Timothy, Loretta, & Kenneth, 2011). The above discrepancy was so wide and therefore it is a clear sign that fraudulent acts were taking place in Apollo’s company (Timothy, Loretta, & Kenneth, 2011). In above connection, it can be scrutinized that the company did not established measures to safe guard shareholders interest. For instance; between 2009 and 2010, revenues were reported to increase from 10% to 15 % respectively and that customers were allotted a fair share according to the directors’ report (Timothy, Loretta, & Kenneth, 2011). However, this was not the case because the figures could not be reflected in the books of accounts. Additionally, it has been reported that customers were undergoing via financial difficulties (Timothy, Loretta, & Kenneth, 2011). 2. Describe the types of evidence you would look for to ...
Cite this document
(“Financial Statement Fraud Schemes Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/84953-financial-statement-fraud-schemes
(Financial Statement Fraud Schemes Essay Example | Topics and Well Written Essays - 1000 Words)
“Financial Statement Fraud Schemes Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.net/finance-accounting/84953-financial-statement-fraud-schemes.
It is a discipline that employs skills, knowledge and experience of employees involved in a project to achieve goal of project. Main objective of project management is to control cost, meet estimated and proposed deadline and reduce risk associated with the project and maintain quality of work.
The author states that the company’s accounting policy recognized sales returns by crediting the respective amount and at the same time it also counted it as inventory. The inventories were shared between the various stores of the company to boost sales. Various external vendors were arranged to ship merchandises of the company claiming fake discounts.
The author states that the motivating factors for the management’s engagement in revenue recognition fraud may be due to a weak season where the organization predicts unimpressive financial prospects. In addition, unscrupulous management systems could get involved in outright revenue recognition fraud.
The author of the paper states that financial fraud demeans investor confidence in financial reporting and lowers the efficiency of corporate governance. A financial statement fraud refers to an intentional misrepresentation of financial information that the corporation presents to the public.
Since the increase of number of vehicles is the only factors involved in the increase in income of the population. But the increase in the road length is dependent upon many economical, political and social factors. This difference makes the pace of development to accommodate this increase in no of automobiles slow and hence the blessing of owning private transportation becomes curse.
The resistant strain, MRSA was first discovered in the United Kingdom in 1961 and is now widespread, particularly in the hospital setting where it is normally termed a superbug. The symptoms can range from skin boils to necrotizing fasciitis which is popularly known as "flesh-eating disease".
According to the study The Awakening, in other words, has been interpreted as a precursor to the feminist movement’s call for equality. Some of these interpretations, such as that forwarded by the American literature professor, Katherine Kearns, maintain that to accurately understand this novel in these terms, it is necessary to focus on symbols.
Yes, the SEC does bear some responsibility for the extension of the Madoff scheme because Harry Markopoulos did try to raise several red flags concerning Madoff's operation, yet his claims were not investigated. Also, Madoff was examined on four separate occasions between 1992 and 2006 but no evidence of fraud was uncovered.
The author states that ethical culture is one which rouses ethical demeanor. Ethical leadership involves proper demeanor through interpersonal relationships and personal actions and the advocating such demeanors to subordinates, mainly through two-way communication, decision-making, and reinforcement.
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Financial Statement Fraud Schemes for FREE!