Reference no: EM131427894
Homework Assignment
1-3. You are investigating possible hidden income in a divorce dispute involving an automobile repair shop with ?ve bays. There are ?ve mechanics, charging approximately $60 per hour for 7 hours per day. Assume 315 days worked with each person's wage of $30 per hour for 8 hours. Compute gross pro?t per year. If the owner reports $42,500 of gross income, what is your opinion? Show your calculations first below followed by your opinion below.
Calculation:
Opinion (Conclusion)-1 sentence is sufficient:
4-6. What are the six requirements of a valid contract?
a. _____________
b. _____________
c. _____________
d. _____________
e. _____________
f. _____________
7. Which would be the best source for a forensic accountant to gather information and learn about a new industry?
a. RIA Federal Tax Articles
b. Audit Technique Guidelines
c. Daubert Tracker
d. CCH Citator
e. Shepardizing
8. Which would not be a procurement fraud scheme?
a. Bid rigging
b. Phantom vendors
c. Cost mischarging
d. Bill-and-hold
e. Split purchases
9. What famous U.S. Congressman resigned from Congress in 2005 after pleading guilty to taking $2.4 million in bribes?
a. Armstrong Williams
b. William Jefferson
c. Vernon Jackson
d. Peter Hartz
e. Randy Cunningham
10. What would probably not be helpful in trying to ?nd and prosecute someone for accepting bribes and kickbacks?
a. Audit right clause
b. Chain-of-custody
c. Duty to cooperate
d. Foreign Corrupt Practices Act
e. Trying to turn someone
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