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:

Tranquilizers

Drugs used to reduce tension or anxiety, often affecting the central nervous system to induce a calming effect.

Depressant Drugs

Substances that reduce the function or activity of a specific part of the body or brain, often used to induce relaxation, decrease anxiety, or promote sleep.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Relaxation

Relaxation refers to a state of calmness, reduced tension, and stress, often achieved through techniques such as deep breathing, meditation, or certain physical activities.