ACC705: Trimester 1, 2019

Tutorial 1

Reading

Read the paper “Traits skills and ethical values of public sector forensic” posted on Moodle and
prepare a class presentation for 5 minutes.

Question 1:

“An accountant only prepares the financial statements of a company and does not do any or
much audit work. Therefore, he/ she is not required to follow any ethical standard”.

A. State whether you agree or disagree with the above statement and why.
B. Explain if accountants in Fiji are required to follow any ethical standards. If so, what
are some of these?
C. State the organization in Fiji that is responsible for overseeing the work of
accountants. Also state what their “other work” involves.

Question 2:

Sam works as a payroll clerk at ABC Corporation Limited for the past 1.5 years. His salary is
$8,500 per annum. Recently, he has bought a car worth $15,000 and a house on mortgage
worth $250,000. State if you notice any “red flags” for Sam and why.

Question 3:

State some of the skills or attributes that you need to possess if you wish to become a forensic
accountant.

Question 4:

Why does a forensic accountant need to have knowledge of financial reporting together with
criminal laws of Fiji?

Question 5:

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Should you as a forensic accountant assist in financial statement audit? Why or why not?

Question 6:

Read about any business scandal such as WorldCom, Enron, Madoff, ABC Learning. Provide a
summary stating what fraudulent activities the business was engaged in and how their fraud
was identified.

Question 7:

Albert works as a director for Supreme Supplies. During the meeting, Albert strongly
recommends that Supreme Supplies buys its materials from Shayal Supplies which is actually his
wife’s business. The members of that meeting agree to buy supplies from Shayal Supplies.
However, during the meeting, Albert does not disclose to the members that Shayal Supplies is
owned by his wife.

A. Identity the type of fraud committed by Albert.

B. What is Albert’s responsibility in the above case?

Question 8:

Read the research paper uploaded on Moodle on “Traits, skills and ethical values of public
sector forensic accountants: an empirical investigation” and state the essentials skills that are
needed for public sector forensic accountants identified by the author. Explain the importance
of such skills.

Question 9:

Sarah was writing a story book. However, she did not know how to end the book by giving an
interesting climax. Henry, a friend of Sarah one day visits Sarah’s home for dinner. Sarah
discusses the issue with him as a friend. He advises Sarah of a nice ending. She is impressed
with the idea. However, she is still unsure of using that idea. Weeks pass by and Sarah is still not
able to come up with a nice ending. Therefore, she uses the idea advised by Henry. Finally, her
book is published and to her surprise, it is a big hit! She is able to make about $1million dollars
from the sales. Henry learns about it and is angry on her for using her idea and not providing

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him the share of the profits. He then files a case against her in court. Sarah gives affidavit that
there was no agreement made between them upon the share of profits or losses and that
Henry only gave her the idea on the dinner table without any verbal or written agreement.

A. Identify the fraudulent issue in the above case.

B. State if Henry will be successful in his case.

Question 10:

Mr. Brown is the owner of XYZ Garment Business. He wishes to travel to India for holiday
purposes. He advised his accountant that during his trip, he will also try finding some
prospective suppliers for their garment supplies. Mr. Brown instructed his accountant to
include this expense as business travelling expense.

A. Advise whether the accountant should include the above expense as a business expense
and why.

B. Advise whether the accountant will be violating any accounting principles if he/ she
includes these expenses as business expense.

All the Best.