Term 3 Unit 1 Discussions
Unit 1 Discussion: The Summer Lunch (ACC315 Fraud Prevention & Examination)
Jim Smith and Bob Jones are new summer interns working for a major insurance company. During their lunch break each day, they eat at a local sandwich shop. One day, Bob’s girlfriend joins you for lunch. When the bill arrives, Bob pays and tells Jim he will submit the bill for expense reimbursement as a business expense. Bob treats his girlfriend to lunch in this manner several times during the next month. You always ask for separate checks and pay for your lunch separately.
Corporate policy states that casual lunches are not considered a business expense. Bob says this is not a casual lunch. He says that you and he always talk business and that he is recruiting his girlfriend for an intern position next year.
Is fraud being committed by Bob?
What would you do?
Unit 1 DB: Comparing Different Diets (BIO150 Nutrition)
For this Discussion Board, review the foods in these two photos:
Given what you have learned this week, what are some of the nutritional differences you see between the two photos? After describing how they are different, please answer the following questions:
Unit 1 Discussion: Analysis Case 9–5 Overstatement of ending inventory (ACC340
Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count. For the accounting year-end December 31, 2024, ending inventory was originally determined to be $3,265,000. However, on January 17, 2025, company’s controller discovered an error in the ending inventory count. The controller determined that the correct ending inventory amount should be $2,600,000.
Danville is a privately owned corporation with significant financing provided by a local bank. The bank requires annual audited financial statements as a condition of the loan. By January 17, the auditors had completed their review of the financial statements which are scheduled to be issued on January 25. They did not discover the inventory error.
The controller’s first reaction was to communicate the finding to the auditors and to revise the financial statements before they are issued. However, the controller knows that fellow workers’ profit-sharing plans are based on annual pretax earnings and is uncertain what effect the error correction would have on pretax earnings.
What is the effect of the inventory error on pretax earnings?
How would correcting the error affect employee bonuses?
If the error is not corrected in the current year and is discovered by the auditors during the following year’s audit, how will it be reported in the company’s financial statements?