A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 7, Problem 1Q

A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Consider the scenario in which Brooke Miles, an accounts payable clerk for West Coast Design Inc., misappropriated $48,350 by paying false bills for commodities that were never delivered to the company. It was the clerk's responsibility to open accounts in the names of the phony corporations and pay the cheques at a nearby bank. Describe a fraud-prevention or detection method that may have been used to avoid or identify the scam.

Assume that brooke miles accounts payable clerk for west coast design inc.stole $48,350 by paying fictitious companies and cashed the checks at a local banks. Describe a control procedure that would have prevented or detected the fraud?

1. "The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company." Do you agree or disagree? Explain. 2. A local bank reported that it lost $150,000 as the result of an employee fraud. Mr. X is not clear on what is meant by an "employee fraud." Explain the meaning of fraud to Mr. X and give examples of frauds that might occur at a bank. 3. On September 1, ABC Company had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased 80 calculators at $20 each from DeVito Co. for cash. Sept. 9 Paid freight of $80 on calculators purchased from DeVito Co. Sept. 10 Returned 2 calculators to DeVito Co. for $42 credit (including freight) because they did not meet specifications. Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. Sept. 14 Granted credit of $31 to Mega…

Answer 2

Textbook Question

Chapter 7, Problem 1Q

A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 7, Problem 1Q

A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 7, Problem 1Q

A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Answer 8

Expert Solution & Answer

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

To define: Fraud with an example

Answer 12

Explanation of Solution

Definition: Fraud can be defined as a deliberate and deceptive action of an employee to obtain unlawful gain from the employer.

Example: A bank employee could transfer the money from any customer deposit account to his personal accounts through computer. This kind of internal embezzlement committed by bank employee, against his employer is referred to as employee fraud.

Answer 13

Conclusion

Thus, fraud is defined as an unlawful action intended by employee to obtain personal benefit by deceiving the employer.

Answer 14

Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2Q Ch. 7 - Prob. 3Q Ch. 7 - Prob. 4Q Ch. 7 - Prob. 5Q Ch. 7 - Prob. 6Q Ch. 7 - Prob. 7Q Ch. 7 - Prob. 8Q Ch. 7 - Prob. 9Q Ch. 7 - Prob. 10Q

A local hank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions