Homework: The Fraud at High Flying Corporation
Evaluate and analyze possible issues and problems at the client. Background. This is an individual homework. Identify, analyze, and discuss unusual amounts, patterns, and activities at the client. Prepare the responses with word processing and spreadsheets.
Task
Answer the following questions. Provide details and analysis as appropriate.
1) Analyze profitability. Do you see any unusual activity related to profitability? If so, what?
2) Consider the prices charged for flights. Do these seem reasonable? Why or why not?
3) Evaluate the bank statement and bank confirmation. Do the amounts seem reasonable? Why or why not? Does ending cash tie to the balance sheet? What concerns might you have about cash?
4) Consider the relationship between cash and sales revenue. What concerns might you have about this relationship?
5) Are there any related party transactions? If so, who or what is involved with this transaction? Why is this a concern?
6) How would you characterize the environment at the client? Does this characterization lead to any concerns?
7) Do you have specific concerns about the top executives at this client?
8) Consider various analytical procedures that could be helpful in this situation. Identify these analytical procedures and prepare them. Comment on what you see.
9) Consider property, plant, and equipment (PPE). Do the items of PPE look reasonable? If not, discuss what looks unusual.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.