In One of the Case Studies in the Textbook, Ernie

question 4

Multiple Choice

In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personally. He eventually got a job as a controller for a friend who had just been named as the receiver for a financial services company. Within a short period of time Phillips began writing checks to himself that had nothing to do with payroll. How was the fraud discovered?

• A) The president received a bank statement containing canceled checks that had been written to Phillips.
• B) The receiver received a call from the bank asking him to verify a check.
• C) A vendor received a check in error and reported it to the operations manager.
• D) The operations manager found a check made payable to Phillips while searching Phillips' desk for some accounting records.

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Definitions:

Magnetism

A physical property of materials that respond to the magnetic field, often resulting from the motion of electric charges.

Rock Types

Categories into which rocks are classified based on their formation process, including igneous, sedimentary, and metamorphic rocks.

Pluton

A pluton is a body of intrusive igneous rock that crystallized from magma slowly cooling below the surface of the Earth, often forming the core of mountains.

Sedimentary Unit

A layer of sedimentary rock with distinct physical, chemical, or biological characteristics that distinguish it from adjacent layers.