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

Howard Street Jewelers - Case Study ExampleThis gave her a good relegate of covering up her toshulent actions. Many frauds of this nature are made 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 due to the receipts from the shop that showed high costs for such a small business. Studying of the account books by Alvin more often in like manner allowed them to detect the fraud. The Levis should be in possession of paid attention to Bettys lifestyle 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 ones that raised an alarm to the accountant. In addition, the shop was facing downward endeavor in terms of profits and earnings. The business was going downhill.The cash shortages were not directly related to the f raud. The reason why businesses have cash shortages even if there is no theft of cash is because of the exaggerated receipts that show high operational costs.The accountant does not bear any responsibility because he is an immaterial accountant and doing an audit for a orphic 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