Question

1. The comment "I guess the only way I am going to get this booked is to fly to DC and book it myself. Book it right now, I can't wait another minute" is associated with which Company:

Sunbeam

Enron

WorldCom

2. A key issue in the Sunbeam case was:

	Leases.
	Fixed Asset capitalization.
	Accounts Payable cutoff.
	Bill and Hold Sales.

Verity

3. In the case "Ex-Opera Theater employee accused of stealing over $100K," how was the fraud uncovered?

	A credit card company notified the Opera Company.
	Someone made an anonymous tip to the Management of the Opera Theater.
	An analytical review of financial information and the trial balance showed an unreasonable increase in complimentary tickets.
	None of the above.

Answer 1

Ans 1: Worldcom

The comment "I guess the only way I am going to get this booked is to fly to DC and book it myself. Book it right now, I can't wait another minute'' was made by Myers, director of General accounting in relation with fraud at Worldcom. Hence, Worldcom is the correct choice.

Ans 2: Bill and hold sales

Sunbeam was involved in excessive practice of bill and hold sales which was carried out through the means of channel stuffing. Hence, option 4 is the correct choice.

Ans 3: An analytical review of financial information and the trial balance showed an unreasonable increase in complimentary tickets.

The fraud was uncovered when the staff of the theatre was reorganized and unusually high no. of complimentary tickets were discovered. Hence option 3 is correct