Fraud Prevention – NBC Institute

CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

Question

Manipulation of reporting entities’ books and records has been termed in many quarters as “Creative Accounting” and “Window Dressing.” The Management of Wastage Plc requires clarification of these two concepts.

You are required to write a report to the management of Wastage Plc. Your report should include:

a. Definitions of the TWO concepts. (2 Marks)
b. FIVE examples of each. (5 Marks)
c. THREE possible reasons for Creative Accounting and Window Dressing. (3 Marks)
d. Advise to management on FIVE possible preventive measures of Creative Accounting. (5 Marks)

Answer

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Tags: Creative Accounting, Ethical Standards, Financial Statements, Fraud Prevention, Window Dressing
Level: Level 3

Topic: Ethical Issues in Corporate Reporting

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

Question

Fraud is described as an intentional act involving deception to obtain an unjust or illegal advantage. It involves the presentation of a statement or representation made recklessly or without the belief in the truth or suppression of facts.

The Economic and Financial Crime Commission (EFCC) is a criminal investigation organisation in charge of investigating financial crimes involving politicians, economic saboteurs, and electoral fraudsters. EFCC’s “modus operandi” is such that any suspect or ‘accused’ must deposit all his money and other belongings with the exhibit section headed by Mr. Oripipe, a cashier, who is expected to pay all cash receipts collected by him to the Banking officer. The banking officer issues a revenue receipt to the Cashier.

Mrs. Innocent, the resident auditor, conducted a physical cash survey and discovered that the total amount on the duplicate receipt book with the banking officer is N4,550,000, which does not agree with the actual cash paid in. It was suspected that the organisation has been defrauded.

The following information relates to the deposits collected from January to December 2013:

Cash from Honourable Talaka: N12,500
Cash from a container with five suitcases, each containing N250,000: N1,250,000
Cash recovered from Anine, a criminal that raided Ifako bank: N4,000,000
Cash sales of impounded lace: N425,000
Five boxes containing consumable items earlier disposed of for N16,000, mistakenly kept in Mr. Oripipe’s drawer, were later discovered by the auditor.
On investigation, it was discovered that the banking officer was illegally removing N500 from every N2,500 paid to him by the cashier.

Required:

a. Explain briefly FOUR types of financial fraud. (4 Marks)

b. Prepare the correct statement of deposits from detainees as it should be in Mr. Oripipe’s records and identify the shortfall due to his negligence. (10 Marks)

c. Calculate the amount of cash lost by the government as a result of the fraud. (6 Marks)

Answer

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Tags: Cash Handling, EFCC Operations, Financial Control, Fraud Detection, Fraud Prevention, Public Sector Audit
Level: Level 2

Topic: Public Sector Auditing

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

Question

“Computer systems are often at risk of fraud or theft.”

i. List and explain briefly the TWO main approaches to managing the risk. (5 Marks)

ii. State FOUR measures that can provide protection against fraud and theft. (5 Marks)

Answer

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Tags: Computer Fraud, Fraud Prevention, Information Systems, Risk Detection, Risk Management
Level: Level 1

Topic: Information Systems
Series: MAR/JULY 2020

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

Question

(c) There are similarities and differences between the responsibilities of internal and external auditors. Both internal and external auditors have responsibilities relating to the prevention, detection, and reporting of fraud, for example, but their responsibilities are not the same.

Required:
Explain the difference between the responsibilities of internal auditors and external auditors for the prevention, detection, and reporting of fraud and error. (6 marks)

Answer

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Tags: Audit Responsibilities, External audit, Fraud Detection, Fraud Prevention, Internal Audit, Reporting Fraud
Level: Level 2

Topic: Professional and Ethical Considerations
Series: MAY 2016

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

Question

Distinguish between internal audit and internal check.

Answer

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Tags: Financial Control, Fraud Detection, Fraud Prevention, Internal Audit, Internal Check

Topic: Internal Audit and Its Relationship with External Audit
Series: MAY 2017

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

Question

There are similarities and differences between the responsibilities of internal and external auditors. Both internal and external auditors have responsibilities relating to the prevention, detection, and reporting of fraud, for example, but their responsibilities are not the same.

Required:
In reference to the statement above, explain the difference between the responsibilities of internal auditors and external auditors in relation to:
i) Prevention and detection of fraud. (5 marks)
ii) Reporting of fraud. (5 marks)

Answer

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Tags: External audit, Fraud Detection, Fraud Prevention, Internal Audit, Reporting of Fraud
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAR 2024

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

Question

a) Odaw Ltd operates a manual set of accounts. A trial balance was extracted for the year ended 31 March 2021. The trial balance did not agree. Odaw Ltd does not operate a system of control accounts. The following errors have now been discovered:

A cheque for GHȼ4,300 received from Kwame, a debtor, had been correctly recorded in the cash book but posted as a credit to Kwamena.
Goods purchased on credit for GHȼ2,600 from Birim Ltd. had been correctly recorded in the purchases account but the corresponding double entry had not been made.
A payment of GHȼ820 for Motor Vehicle repairs was entered in error as a debit in the Motor Vehicles account. No entries have been made to record depreciation in relation to this payment. The correct depreciation has been made for motor vehicles held by the business.
Discounts allowed of GHȼ910 had been entered as a credit entry in the discounts received account.
A cheque received for GHȼ7,500 from Awuah, a debtor, had been processed for the correct amount in the cash book but entered as GHȼ5,700 in Awuah’s account.
Sales for the year ending 31 March 2021 had been undercast by GHȼ750.

Required:

i) Prepare journal entries with narratives to correct the above errors. (7 marks)
ii) Prepare the Suspense Account. (3 marks)
iii) Explain the use of a Suspense Account. (4 marks)

b) Odaw Ltd is considering introducing a system of control accounts.

Required:
Evaluate how control accounts would assist in each of the following;
i) Detection of errors; (3 marks)
ii) Prevention of fraud. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Fraud Prevention, Journal Entries, Suspense account
Level: Level 1

Topic: Control accounts and account reconciliations, Correction of errors
Series: DEC 2023

CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

Question

You are required to write a report to the management of Wastage Plc. Your report should include:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Creative Accounting, Ethical Standards, Financial Statements, Fraud Prevention, Window Dressing
Level: Level 3

Topic: Ethical Issues in Corporate Reporting

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

Question

The following information relates to the deposits collected from January to December 2013:

Cash from Honourable Talaka: N12,500
Cash from a container with five suitcases, each containing N250,000: N1,250,000
Cash recovered from Anine, a criminal that raided Ifako bank: N4,000,000
Cash sales of impounded lace: N425,000
Five boxes containing consumable items earlier disposed of for N16,000, mistakenly kept in Mr. Oripipe’s drawer, were later discovered by the auditor.
On investigation, it was discovered that the banking officer was illegally removing N500 from every N2,500 paid to him by the cashier.

Required:

a. Explain briefly FOUR types of financial fraud. (4 Marks)

b. Prepare the correct statement of deposits from detainees as it should be in Mr. Oripipe’s records and identify the shortfall due to his negligence. (10 Marks)

c. Calculate the amount of cash lost by the government as a result of the fraud. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Handling, EFCC Operations, Financial Control, Fraud Detection, Fraud Prevention, Public Sector Audit
Level: Level 2

Topic: Public Sector Auditing

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

Question

“Computer systems are often at risk of fraud or theft.”

i. List and explain briefly the TWO main approaches to managing the risk. (5 Marks)

ii. State FOUR measures that can provide protection against fraud and theft. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Computer Fraud, Fraud Prevention, Information Systems, Risk Detection, Risk Management
Level: Level 1

Topic: Information Systems
Series: MAR/JULY 2020

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

Question

Required:
Explain the difference between the responsibilities of internal auditors and external auditors for the prevention, detection, and reporting of fraud and error. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Responsibilities, External audit, Fraud Detection, Fraud Prevention, Internal Audit, Reporting Fraud
Level: Level 2

Topic: Professional and Ethical Considerations
Series: MAY 2016

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

Question

Distinguish between internal audit and internal check.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Control, Fraud Detection, Fraud Prevention, Internal Audit, Internal Check

Topic: Internal Audit and Its Relationship with External Audit
Series: MAY 2017

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: External audit, Fraud Detection, Fraud Prevention, Internal Audit, Reporting of Fraud
Level: Level 2

Topic: Internal Audit and Its Relationship with External Audit
Series: MAR 2024

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

Question

A cheque for GHȼ4,300 received from Kwame, a debtor, had been correctly recorded in the cash book but posted as a credit to Kwamena.
Goods purchased on credit for GHȼ2,600 from Birim Ltd. had been correctly recorded in the purchases account but the corresponding double entry had not been made.
A payment of GHȼ820 for Motor Vehicle repairs was entered in error as a debit in the Motor Vehicles account. No entries have been made to record depreciation in relation to this payment. The correct depreciation has been made for motor vehicles held by the business.
Discounts allowed of GHȼ910 had been entered as a credit entry in the discounts received account.
A cheque received for GHȼ7,500 from Awuah, a debtor, had been processed for the correct amount in the cash book but entered as GHȼ5,700 in Awuah’s account.
Sales for the year ending 31 March 2021 had been undercast by GHȼ750.

Required:

i) Prepare journal entries with narratives to correct the above errors. (7 marks)
ii) Prepare the Suspense Account. (3 marks)
iii) Explain the use of a Suspense Account. (4 marks)

b) Odaw Ltd is considering introducing a system of control accounts.

Required:
Evaluate how control accounts would assist in each of the following;
i) Detection of errors; (3 marks)
ii) Prevention of fraud. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Detection, Fraud Prevention, Journal Entries, Suspense account
Level: Level 1

Topic: Control accounts and account reconciliations, Correction of errors
Series: DEC 2023

Question Tag: Fraud Prevention

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CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

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Question Tag: Fraud Prevention

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CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

You're reporting an error for "CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting"

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

You're reporting an error for "PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit"

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

You're reporting an error for "MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems"

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

You're reporting an error for "AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations"

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

You're reporting an error for "AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit"

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

You're reporting an error for "AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

You're reporting an error for "FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors"

CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting

Provide definitions, examples, reasons, and preventive measures for Creative Accounting and Window Dressing.

You're reporting an error for "CR – Nov 2016 – L3 – Q5 – Ethical Issues in Corporate Reporting"

PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit

Explanation of financial fraud types and calculation of revenue loss within EFCC operations.

You're reporting an error for "PSAF – Nov 2014 – L2 – Q3 – Public Sector Audit"

MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems

Explain the main approaches to managing the risk of computer fraud and measures to provide protection against fraud and theft.

You're reporting an error for "MI – Mar-Jul 2020 – L1 – SB – Q5b – Information Systems"

AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations

This question explores the different responsibilities of internal and external auditors in the prevention, detection, and reporting of fraud and error.

You're reporting an error for "AA – May 2016 – L2 – Q3c – Professional and Ethical Considerations"

AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit

Distinction between internal audit and internal check.

You're reporting an error for "AA – May 2017 – L2 – Q2b – Internal Audit and Its Relationship with External Audit"

AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit

Explain the differences between internal and external auditors in fraud prevention, detection, and reporting responsibilities.

You're reporting an error for "AA – Mar 2024 – L2 – Q4b – Internal Audit and Its Relationship with External Audit"

FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors

Corrects errors using journal entries, prepares a suspense account, and explains the use of suspense and control accounts.

You're reporting an error for "FA – Dec 2023 – L1 – Q3 – Control accounts and account reconciliations | Correction of errors"

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