Cash Flow Fraud.docx - Running Head Cash Flow Fraud Cash...

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Running Head: Cash Flow Fraud Cash Flow Fraud Name Institutional Affiliation
Running Head: Cash Flow Fraud Task 1: Could Bob be right? Are employees defrauding the company, or has the Russian Ruble finally at the end of its success? In my opinion, Bob was right. The kitchen is the heart of all the hotel operations and in fact, in this case, the hotel's main attraction, was its popular restaurant chef Alec who quit. Therefore, the move to test the award winning food in order to establish whether the quality of the food had deteriorated, which could have led to reduced sales, hence decline in cash flow was justified. His second move to peruse through the books of account was also right. The hotel could be making good revenues but there might be accounting fraud and misappropriation of funds resulting to decline in cash flow. Bob was right to think that the employees were defrauding the company. This was revealed after a thorough scrutiny of the accounting books where he found out that most of the supplies were procured from Calvin’s brother-in-law. This could result to conflict of interest or other frauds (discussed below) that may lead to cash flow decline. In his reasoning, Bob was right thinking

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