Financial Statement Fraud

The purpose of this paper is to identify potential financial register fraud schemes at Apollo situation and describe the type of secernate to look for to determine whether fraud is occurring, and to finally outline how the vital procedures previously identified will be used to analyse potential schemes. Potential financial statement fraud schemes later on reviewing the audit inquiry response from Lawyers R Us, LLC, it has been determined that the a la mode(p) litigant Apollo billet is involved in could result in as much of a loss as $10,000,000, with good fees considered. This amount was not accrued for as a liability. aft(prenominal) reviewing the visit card meeting minutes, two related-party transactions were discovered. Josephine Mandeville is an outside trope up member and audit committee member. She was hired and give $200,000 for her consulting on the new computer equipment purchase and installation that $1,000,000+. This wide-cut cost, inc luding Mandevilles consulting fee, was capitalized. Additionally, a $1,000,000 loan was made to the CEOs own(prenominal) secretary with a 1% interest rate and a maturity date in 37 long time. Hiring Ms.

Mandeville and making this powerful loan were approved by the bill of fare, but it is uncertain whether the board is providing effectively overseeing the financial reporting process and internal controls as it pertains to related-party transactions. After reviewing the accounts receivable aging and accounts receivable confirmations, it was discovered that Apollo Shoes has $21,660,477.61 that is considered past due, or 60 or more years outstanding. This amount includes $14,784,144 .03 owed by Mall-Wart. Mall-Wart entered i! nto a voluntary bankruptcy in early November and made Apollo aware of this. Apollo subsequently sent just about other $5m of fixs that Mall-Wart claims they didnt place over and learned an redundant receivable. Consequently, Apollo exactly has a $1,262,819.88 allowance for bad debt. Apollos determination to record the revenue for the shoes...If you want to get a replete essay, order it on our website: OrderEssay.net

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