In One of the Case Studies in the Textbook, Bob

question 19

Multiple Choice

In one of the case studies in the textbook, Bob Walker was the head cashier for a discount drug store who perpetrated his fraud scheme by issuing fictitious refunds. How was the fraud discovered?

• A) The bookkeeper noticed an unusually large number of policy overrides by Walker.
• B) The internal auditor developed a computer program that identified cashiers with an unusually high number of returns.
• C) The store manager caught Walker pocketing cash.
• D) An anonymous tip from the company's hotline came into the asset protection department.

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Definitions:

Income Statement Account

An account found on the income statement that records business transactions affecting the company's revenue, expenses, gains, and losses.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Assets

Economic resources owned or controlled by a business or an individual, expected to provide future benefits.