ACCT 572 Week 3a Fraud Detection DiscussionFraud Indicators (graded)The hazard of fraud is sweet inside the native doughnut retailer in Chapter 5, Case 1, internet web page 161, or so it seems! What’s your opinion? Do you see any indicators of fraud proper right here? If this had been your doughnut retailer, what would you do in the event you observed these indicators of fraud?Case 1Cal Smith Jr. is the night time time supervisor at a neighborhood doughnut retailer that is doing very successfully. The shop sells doughnuts 7 days per week, 24 hours a day. Cal runs the graveyard shift by himself, since not one of many completely different staff must work at night time time. Since opening six months up to now, Cal has not been able to find anyone to work for him and as a result of this reality has certainly not missed all through labor. Cal makes his deposit every morning sooner than going residence.Cal feels that he is overworked and underpaid. The franchise proprietor, Kenny Jones, has praised Cal for his arduous work and dedication to the company. Kennyâs solely concern is that, a few instances per week, an entire batch of typical glazed doughnuts has been thrown away as a result of over-baking. No matter these points, Cal maintains a transparent work ambiance and is taken into consideration a worthwhile employee.Not too way back, Cal has yelled at people on shifts sooner than and after him for seemingly insignificant causes. He was employed as supervisor on account of he’ll get along with all people and is often easygoing. His newest irritability might stem from the reality that enterprise is slowing down and he does not have rather a lot interaction with anyone at night time time. He moreover has been complaining that he has not been getting very rather a lot sleep. Sometime, Cal acquired right here to work in a model new BMW M3, the auto of his wishes. Cal talked about that his dad helped him buy the auto.1. What areas of the enterprise are most at risk for fraud?2. Decide any indicators of fraud that appear to exist on the doughnut retailer.three. What steps may probably be taken to cut back alternate options for fraud? Class, please be taught Chapter 5, Case Analysis 2, on pages 163 and 164. What are the indicators of employee fraud? When you occur to suspected a fellow employee was committing employee fraud, what actions would you’re taking? How can the company inside the case analysis protect itself from such fraud?Case 2James Davis owns a small Internet service provider enterprise. Not too way back, shoppers have been complaining that they are overcharged and often will not be receiving effectively timed buyer help. Billing fees seem to increase with out uncover.5 years up to now, James used funding from a variety of fully completely different consumers as a strategy to start his Internet service. Presently, he has 17 glorious funds to be paid, all with late prices. 5 of the funds embody notices stating that lawsuits are pending. Moreover, he has not paid dividends to consumers in two years.Day-after-day, James drives each his Mercedes Benz or his new Lexus to work. Sooner than starting the enterprise, James drove only one vehicle, a Suzuki Samurai. James now lives in a palatial residence and owns very expensive furnishings. Employees at all times ask James for model spanking new instruments, nevertheless the âbossâ refuses to interchange the earlier instruments. Two weeks up to now, James was irate and fired one amongst his accounting clerks for not depositing some checks on time. James is believed for shedding his temper.1. Deal with any fraud indicators which may be present on this case.2. Why would complaints from shoppers be a fraud symptom? Who’s in among the best place to detect employee fraud? The auditors? Administration? Fellow staff? Why?