Financial Statement Fraud.Enron.AICPA

Pay vendor w ithin accounts payable 6 overstate

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Unformatted text preview: unts Involved 1. Under-record purchase 2. Record purchases too late 3. Not record purchases 2. Return merchandise to Accounts payable, 4. Overstate returns s upplier inventory 5. Record returns in an earlier period (cutoff problem) 3. Pay vendor w ithin Accounts payable, 6. Overstate discounts discount period inventory, cash 7. Not reduce inventory cost 4. Pay vendor w ithout Accounts payable, cash Considered in another chapter discount 5. Inventory is sold; cost Cost of goods sold, 8. Record at too low an amount of goods sold is inventory 9. Not record cost of goods sold nor reduce r ecognized inventory 6. Inventory becomes Loss on w rite-dow n of 10. Not w rite off or w rite dow n obsolete inventory obsolete inventory, inventory 7. Inventory quantities Inventory shrinkage, 11. Over-estimate inventory (use incorrect ratios, are estimated inventory etc.) 8. Inventory quantities Inventory shrinkage, 12. Over-count inventory (double counting, etc.) are counted inventory 9. Inventory cost is Inventory, cost of goods 13. Incorrect costs are used determined s old 14. Incorrect extensions are made 15. Record fictitious inventory © 2003, 2005 by the AICPA Inventory, accounts payable Fraud Schem es Understating Liability Frauds Understating (3rd Most Common) Not recording accounts payable Not recording accrued liabilities Recording unearned revenues as earned Not recording warranty or...
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