Of the following examples of fraud, which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties
A) A mail room employee steals a check received from a customer and destroys the documentation.
B) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.
C) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car.
D) A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.
Answer: D
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All of the following statements regarding Medicare supplement policies are true EXCEPT
A) eligible individuals must apply no later than 63 days after the date of termination of enrollment in a group health or Medicare Advantage plan. B) preexisting conditions may not be excluded for more than nine months after the effective date of coverage. C) All Medicare supplements must include Plan A as a separate policy. D) As long as an applicant is enrolled in Medicare Part B and 65 years old, a policy may not be cancelled based on the individual's medical condition.
If financial statements are to meet the requirements of adequate disclosure,
a. All information pertaining to the company must be disclosed in the statements or related notes, even though some of the disclosures are potentially detrimental to the company or its shareholders b. All information believed by the auditor to be essential to the fair presentation of the financial statements must be disclosed, no matter how confidential management believes the data to be c. Statement notes should be written in very technical language to avoid misinterpretation by the reader d. A statement note must clearly detail any deficiencies contained in the financial statements themselves