CFE-Financial Transactions and Fraud Schemes

Which of the following is a typical method used to make corrupt payments in bribery and corruption schemes? - Payment of credit card bills, gifts, travel, entertainment, checks, and other financial interests. Laura, the sales manager of Sam Corp., is afraid sales revenue for the period is not going to meet company goals. To make up for the shortfall, she decides to mail invoices to fake customers and credit (increase) revenue on the books for these sales. What account will she most likely debit to balance these fictitious revenue entries and conceal her scheme? - Accounts receivable. James runs an electronics store. One of the main challenges in his business is keeping up with technological advances. Because of this, his auditors want to ensure inventory is not fraudulently overstated on the store's balance sheet. Which of the following actions should the auditors take to ensure inventory is not overstated? - View the inventory and conduct a physical count, make sure obsolete inventory has been written off, and ensure that inventory is recorded at the lower of cost or market value