Howard Street Jewelers Case Study Example | Topics and Well Written Essays - 250 words

Howard Street Jewelers - Case Study modelThis gave her a good chance of covering up her fraudulent actions. M some(prenominal) frauds of this nature are do possible by ignorance of owners when it comes to studying books of accounts and awarding of a lot of trust to employees which is dangerous.The fraud was detected receivable to the receipts from the storehouse that showed high costs for such a small business. Studying of the account books by Alvin more often also allowed them to detect the fraud. The Levis should have paid attention to Bettys life style as it was changing inconcurently with her earnings. The increase in costs of operation for the shop should have also been a sufficient heads up.The ratios of costs of operation and the size of the business are the unrivalleds that raised an alarm to the accountant. In addition, the shop was facing downward movement in terms of profits and earnings. The business was going downhill.The cash shortages were non directly related t o the fraud. The reason why businesses have cash shortages even if there is no stealing of cash is because of the exaggerated receipts that show high operational costs.The accountant does not bear any responsibility because he is an external accountant and doing an audit for a private business is not one of his legal duties. He is only expected to do it if contracted by the owners of the private business (Petrucelli