Book On Forensic And Investigative Accounting Please Answer

Book Forensic And Investigative Accounting Please Answer The Quest

Analyze the scenario involving Logan Johnson, a recent accounting graduate working for Platinum Automotive, and the suspicious activities related to the sale and repayment of a car loan. Provide an in-depth assessment of the situation, highlighting potential red flags, ethical considerations, and investigative steps that Logan should consider to ensure accurate financial reporting and integrity. Discuss whether Logan's receipt of cash labeled as a "bonus" could indicate misconduct or misappropriation, and offer professional guidance on how she should proceed while maintaining ethical standards.

Paper For Above instruction

The scenario presented revolves around Logan Johnson’s role as an accountant at Platinum Automotive, where she encounters irregularities in the recording of a vehicle sale and loan repayments, as well as an unsolicited cash "bonus." This situation raises important questions about financial integrity, ethical conduct, and internal controls within the organization.

At the outset, Logan's initial recording of the sale on February 6, 2011, appears standard, recognizing the cash received and the note receivable balance. However, the subsequent adjustments, particularly the partial payments made on February 10, 15, and 20, and the receipt of an envelope containing $250 marked as a bonus, suggest potential issues that merit scrutiny. From an investigative standpoint, the first red flag is the discrepancy in the amounts received versus recorded. The initial cash payment was recorded at $9,800 instead of $9,900, and later payments deviate from typical amortization schedules or expected repayment amounts. These inconsistencies could indicate misappropriation or manipulation of records.

Furthermore, the cash envelope marked "bonus" and given directly to Logan raises ethical concerns. This unsolicited cash gift could serve as a means of influencing her actions or conceal fraudulent activity. Such conduct violates ethical standards established by the American Institute of Certified Public Accountants (AICPA) and other professional bodies, emphasizing independence, objectivity, and integrity. Accepting or failing to report these kinds of gifts may compromise her professional judgment and could be considered collusion or facilitation of misappropriation.

From an investigative perspective, Logan should consider several steps. Firstly, she must review all supporting documentation related to the sale and repayments, verifying the loan balances and payments against bank statements, customer payment histories, and organizational records. Next, she should conduct interviews with Joe and Tom Younger to understand the context behind the discrepancies and the cash gift. It's also prudent to audit the company’s internal controls related to sales recording, cash handling, and employee compensation, particularly concerning bonus payments or gifts.

Ethically, Logan needs to recognize her obligation to report suspicious activities to higher management or external authorities if internal investigations reveal possible fraud or embezzlement. She must avoid any behavior that could be construed as condoning or concealing misconduct. Maintaining documentation of her findings and actions is crucial, as is adhering strictly to professional ethical guidelines and internal audit procedures.

In conclusion, the scenario suggests possible financial misconduct involving unrecorded or misrepresented payments and inappropriate personal gains. Logan should approach her role with skepticism, follow due process, and prioritize transparency and ethical standards in her investigations. Her actions should aim to preserve the integrity of the financial reporting process and prevent further fraudulent activities.

References

• Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2019). Fraud Examination (6th ed.). Cengage Learning.
• Association of Certified Fraud Examiners. (2018). Fraud Risk Management Guide. ACFE.
• American Institute of Certified Public Accountants. (2019). Code of Professional Conduct. AICPA.
• Wells, J. T. (2019). Corporate Fraud Handbook: Prevention and Detection. Wiley.
• Rezaee, Z. (2018). Financial statement fraud: Prevention and detection. The Journal of Forensic & Investigative Accounting, 10(2), 324-347.
• Singleton, T., & Singleton, A. (2011). Fraud Auditing and Forensic Accounting. Wiley.
• Organisation for Economic Co-operation and Development. (2014). Principles of Corporate Governance. OECD Publishing.
• Turvey, C. G. (2010). Financial Investigations and Forensic Accounting. CRC Press.
• Golden, T. (2016). Ethical issues in forensic accounting. Journal of Business Ethics, 137(2), 305-319.
• Spalding, M. G. (2017). Ethical considerations in forensic accounting: A case study approach. Ethics & Behavior, 27(4), 282-300.