Jane works at a small business in the area, Fraud Accounting Questions help

1.Jane works ata small business in the area. Recently, Jane experienced a bitter divorce thatleft her with little money and three children. Desperate to provide for herfamily, she took some money from her company to get by. Jane's intentions torepay the company never materialized. In fact, Jane began to borrow more andmore money. Realizing that she had pilfered more money than she could pay back,Jane soon became overwhelmed with feelings of fear and guilt. These unusualemotions evoked stress as a physical response to the guilt. What are somecoping mechanisms that may be identified in Jane's behavior?2.You juststarted your own roofing business, and you have hired 10 new employees. Two ofthe new employees are responsible for taking care of all of the administrativefunctions of the company. Because this is a very competitive business, thesepersons will also be responsible for bidding on new business. The other eightemployees are divided into two different work groups of four that will go todifferent job sites and replace old roofing material with new material. You areaware that fraud prevention is necessary because fraud is likely to occur inany company. Because you have never operated your own business before, you areunsure ofwhere to begin in order to protect your assets from being stolen. You decide tosearch the Internet in order to discover the types of opportunities that existfor employees to steal assets.Identify and discuss the different types of opportunities that exist foremployees to steal assets from your company. What can you do to eliminate thesefraud risks?3.List anddiscussfour or more methods that an interviewer would use in dealing withdifficult people.4. Mike Peel, 55, supported himself by conninginnocent people with various get-rich-quick schemes. But now, his luck has runout. He went to the neighborhood church known for its generosity to those inneed. He told Father Joseph Mehan, the pastor, that his life was in dangerbecause he owed $30,000 to loan sharks. Mike assured Father Mehan that he wasturning his life around and was looking for a fresh start. Father Mehan paidoff Mikes debt. Mike told Father Mehan that he could not pay him back rightaway but that he would get the church a great investment through a friend.Father Mehan kept sending money to Mike for investment purposes, totalling tensof thousands of dollars, until last December, when the priest tried to withdraw$25,000 in cash from a parish account. Mike had taken one of the checks thatthe priest had given to him and had altered the amount from $5,000 to $50,000,leaving no money in the parish account. Mike got caught, and he admitted totaking thousands of dollars in church money by falsely promising he wouldinvest itbut then lost it all gambling.5. Answer the following questions regarding theSarbanes-Oxley Act of 2002 ("Act").1.Do you feel that the Act was too little, too late, is adequate to accomplishits intended goals, or otherwise?2.Why or why not should the Act be expanded to include all companies, whetherlarge or small, publicly or privately held? Be sure to adequately defend yourpositions.6. Kristynn Graham, a woman from Smithville,Alabama, was a shopping addict and had run up considerable debt on excessivepurchases of jewelry and clothes. She would also go to the grocery store andslap down plastic, take her kids to miniature golf, and go bowling with herhusband. Christmases were a "little bigger," with gifts like $100remote-control cars for her sons. Now, she was finding the best way to not tellher husband about the addiction. She made $11 an hour at Durban, and herhusband earned a little bit more as a machinist at an aircraft company. Familyfinances were a constant balancing act. Kristynn turned to her employer, DurbanConsulting. She raised money to pay down her obligations by repeatedly paddingthe company's expense accounts. She took reimbursements for trips andconferences she did not attend. In her 3 years of work, she had collected atotal of $240,000 from her employer. It got to the point where she didn't feellike she was doing anything wrong.WhenDurban found out, Graham admitted the fraud and pled guilty to one count offraud and said that she was planning to pay it back.Required:1.What type of fraud did Kristynn Graham commit? 2.List and discuss any four factors or weaknesses that could have resulted inthis type of fraud. 3. What could be done to avoid or reduce thiskind of fraud in a company? What specificsegregation of duties could havebeen in place to prevent Kristynn from committing this fraud?7.Jonas Fritz, ownerof Careful Construction Inc., had a perplexing problem. Although his companyalways had enough work to keep the employees busy, company profits were falling.In fact, Careful Construction Inc. will have difficulty meeting its payrollthis year. Mr. Fritz compared Careful Construction Inc.'s materials costs withthe company's overall revenues for the past 3 years, and he noticed thatmaterials costs were rising at a significantly greater pace than were revenues.Mr. Fritz could not understand why materials costs were rising so rapidly,especially since his other costs were remaining relatively constant. Mr. Fritzshowed these results to his friend, Larry "Calculator" Mason, who hadconveniently just taken a continuing education course in fraud recognition andprosecution.Mr. Masonpeered out from under his green eyeshade and said, "Well, Jonas, you mighthave a fraud here! Maybe one of your employees is stealing from you!"Mr. Fritzinterrupted, "But how would employees get their hands on that much cash?I'm not a bank; I don't have much cash in the officeand my three officeemployees have worked here for years. We're like family!"Mr. Masonreplied, "I'll explainthe employee, if it is an employee, probably is notwalking out of here with $20 bills. Let's look at your purchasing invoices andemployee records and see what we can find. But first, read this paragraph onemployee cash theft. I got this booklet at the last seminar I attended, andthis paragraph will help you understand what we will be looking for."1.Using what you know about how employees steal company cash, respond to thefollowing.A. Who is likely committing fraud at Careful Construction? B.Name two possible ways that this individual could commit fraud. 2.Name three steps Mr. Fritz should take in order to verify his suspicions aboutwho is committing fraud. 3.What are at least two controls Mr. Fritz could institute to prevent this typeof fraud from happening again?