Explain the Elements of a Fraud Scheme and Describe the Who

question 14

Essay

Explain the elements of a fraud scheme and describe the who, what, how when where and why of the investigation.

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Definitions:

Management Control

Management control refers to the processes and procedures implemented by an organization's management to ensure that its resources are being used effectively and efficiently toward the achievement of its objectives.

Periodic Inventory System

An inventory valuation and management method where updates to inventory levels are made periodically at the end of a specific accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.