Required a use the fraud triangle and information

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Required a. Use the fraud triangle and information from Parts I through III of this case to identify incentives/pressures, opportunities, and attitudes/rationalizations for Pinnacle to engage in fraudulent financial reporting. b. Identif, one or more fraud risks that you believe exist due to the nature of Pinnacle's industry. Indicate the accounts most likely to be affected by the identified fraud risks. c. Auditors must generally identify a fraud risk for revenue recognition. Indicate at least two ways that Pinnacle might engage in revenue recognition fraud. Identifi' the specific nature of the potential fraud and an audit procedure that you would perform to determine whether fraud is occurring. d. In Part I of this case you performed preliminary analltical procedures on Pinnacle's financial statements. Identify changes in account balances or ratios that you believe indicate the potential for fraud, and describe the nature of the potential fraud. e. Part II of the case includes 11 situations that you encountered in audit planning. For each situation, describe whether it indicates a potential fraud risk. For each potential fraud risk, identify the related fraud risk triangle element(s). i!$!*q*iipjiistS:rIiridi.ldiiirp;!$!!i!FgiiSfsi:n:slrlq{$!RssBtr$:!:sgsr#sffiiitswis4ffis$6#&ss*iwffiffi1ffiffiffi4!$!:EWW!#me!ffis!*$j ACL PROBLEM Required 11-35 (Objective 1l-6) This problem requires the use of ACL software, which is included in the CD attached to the text. Information about installing and using ACL and solving this problem can be found in Appendix, pages 850-854. You should read all of the reference material preceding the instructions about "Quick Sort" before locating the appropriate command to answer questions a. through f. For this problem use the MetapholAPTrans_2O02 file in ACL-Demo. The suggested command or other source of information needed to solve the problem requirement is included at the end of each question. a. Total the Invoice Amount column for comparison to the general ledger. (Total Field) b. Recalculate unit cost times quantity and identifl' any extension misstatements' (Filter) c. Products that Metaphor purchases should not exceed $100 per unit. Print any pur- chases for subsequent follow-up where unit cost exceeded that amount. (Filter) d. Identify the three vendors from which the largest total dollar accounts payable transactions occurred in 2002. (Summarize and Quick Sort) e. For each of the three vendors in question d., list any transactions that exceeded $15,000 for subsequent follow-up. Include the vendor number, invoice number, and invoice amount. (Filter) f . Vendor numbers 10i34 and 13440 arerelated parties to Metaphor. Print any accounts payable transactions with those two vendors. (Filter) Also, determine the total amount of transactions with vendor 10134' (Total Field) RESEARCH PROBLEM I1-I: GLOBAL FRAUD SURVEY Companies and auditors now operate in a global environment and need to be aware of potential risks that stem from subsidiaries, business partners, and network firms located outside the U.S.
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