employee embezzlement

1. “How to commit a significantly large and fool the auditors.”
Invent a fictitious person (Giving a position and title) whose duties include management and/or accounting duties for a company. Choose the company and industry, and

choose and area (e.g. accounts receivable and cash receipts, purchasing and cash disbursements, inventory custody, payroll, etc.) Invent a situation (accounting and

control organization), and develop an employee embezzlement fraud perpetration scheme.

2. “How to produce materially misleading financial statements and fool the auditors.” i
Identify a context (industry, high company officer(s) and accomplices). Choose one or two areas to create misleading financial statements numbers from : cash, accounts

receivables, inventory, fixed assets, deferred charges, accounts payable, taxes payable, notes payable, deferred revenue, etc. Invent a situation (accounting and

control organization) and develop a scheme for creating misleading financial statement numbers that cause the company’s financial statements to be materially

misleading.

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