Financial Statement Fraud

The purpose of this paper is to identify potential financial register fraud schemes at Apollo situation and describe the type of recount to look for to determine whether fraud is occurring, and to finally outline how the infixed procedures previously identified will be used to examine potential schemes. Potential financial statement fraud schemes by and by reviewing the audit inquiry response from Lawyers R Us, LLC, it has been determined that the in vogue(p) litigant Apollo enclothe is involved in could result in as much of a loss as $10,000,000, with sanctioned fees considered. This amount was not accrued for as a liability. aft(prenominal) reviewing the see card meeting minutes, two related-party transactions were discovered. Josephine Mandeville is an outside fake up member and audit committee member. She was hired and gainful $200,000 for her consulting on the new computer equipment purchase and installation that $1,000,000+. This sinless c ost, including Mandevilles consulting fee, was capitalized. Additionally, a $1,000,000 loan was made to the CEOs own(prenominal) secretary with a 1% interest rate and a maturity date in 37 years. Hiring Ms.

Mandeville and making this good loan were approved by the lineup, but it is uncertain whether the board is providing effectively overseeing the financial reporting process and internal controls as it pertains to related-party transactions. After reviewing the accounts receivable aging and accounts receivable confirmations, it was discovered that Apollo Shoes has $21,660,477.61 that is considered past due , or 60 or more years outstanding. This a! mount includes $14,784,144.03 owed by Mall-Wart. Mall-Wart entered into a voluntary bankruptcy in early November and made Apollo aware of this. Apollo subsequently sent nearly other $5m of fixs that Mall-Wart claims they didnt place over and learned an superfluous receivable. Consequently, Apollo exactly has a $1,262,819.88 allowance for bad debt. Apollos close to record the revenue for the shoes...If you want to get a ripe essay, order it on our website: OrderCustomPaper.com

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