search for and identify a journal article authored within the last 10 years which discusses an aspect of forensic accounting, fraud investigations,

Al B. Seeinyou began operating his new business January 1, 2012 in the central valley of California. The area contained many agriculture businesses, most having a substantial need for pumps. Al, known as Big Al, had worked for one of the large pump manufacturers located in the area. He began with the pump manufacturer on the production line but eventually moved into sales. His employer only sold pumps to large retailers that resold to the consumer, the agricultural businesses.

Big Al was aware that the large retailers maintained a full line of pumps and because of the typically large orders received from the large agricultural companies gave large discounts and excellent customer service to these large volume customers but provided minimal customer service and usually no discounts to small and medium sized customers.

The business Big Al opened, Big ATs Pumps, consisted of selling the more popular pumps to small and medium sized agricultural companies in the area. By buying large quantities of the bestselling pumps directly from the pump manufacturer he would receive large discounts on his purchases and his inventory could be kept reasonably small because he wouldn't carry pumps other than the bestselling ones. He could resell the pumps at twice his cost, prices that would be as low as or lower to his customers than what they would pay to the large pump retailers and he would provide much better customer service. For example, Big Al provided the service of taking orders over the phone and delivering the pumps to the customer, a service not offered by the large pump retailers.

Big Al located and leased commercial space for Big Al's Pumps. He signed the lease agreement October 1, 2011 with the sixty month lease period beginning January 1, 2012 and ending December 31, 2016. The lease agreement provided for a monthly payment of $4,000, payable at the beginning of each month, and an additional two percent of annual gross sales revenue, payable on or before February 1 of the following year. The agreement also included Big Al's payment of a deposit consisting of the payment of rent for December 2016 on October 1, 2011, the date the lease was signed. The period October 1 through December 31 was rent free and allowed Big Al to make the improvements needed to convert the space to his warehouse and small retail area. The rented space already included two moderately sized offices but he needed to make some leasehold improvements. The free rent period also allowed him the time needed to purchase inventory and equipment and hire employees so he could open for business on January 1.

EMPLOYEES OF BIG AL'S PUMPS

Big Al decided not to incorporate Big Al's Pumps so he was not an employee of the business. He did plan on the business becoming successful enough that he could eventually take cash withdrawals from time to time as he would eventually need cash withdrawals to cover his living expenses. The three employees began work Monday, January 2, 2012.

Little Al-Big Al hired his son, Al B. Seeinyou, Jr., known as Little Al. Little Al has had trouble getting and keeping a regular job. Big Al thought all Little Al needed was some direction so he hired Little Al and gave him the title of Store Manager and a weekly wage of $800. Little AI was put in charge of sales at the store, both over the counter sales and taking telephone orders. Big Al's Pumps received very good walk-in traffic because the area contained other agricultural supply stores.

Henry-in the initial stages of the business formation Big Al mentioned to Little Al that the business would need an employee to manage the inventory in the warehouse, pick up pumps ordered from the manufacturer, and make deliveries of pumps to their agricultural customers. Little Al told his Dad that he knew someone who was looking for work and who would be perfect for the job. Big Al interviewed Henry and thought Henry's qualifications were acceptable. When Big Al mentioned to Little Al he planned to call the businesses Henry listed as previous employers Little Al became upset and asked his father why he didn't trust his judgment. Big Al relented and called Henry on the phone that afternoon and hired Henry for $700 per week.

Martha-during the interview with Henry, Big Al mentioned that he was also looking for someone who could do the books, the banking, pay the bills, and all other office related duties. Big Al joked with Henry that he knew nothing about accounting, and had never even prepared a bank reconciliation, that he wasn't even sure what a bank reconciliation was. Henry told Big Al that his mother-in-law had been a bookkeeper for the last twenty five years and he had heard her talk about doing everything Big Al wanted. Henry said Martha was available and would send Martha by the next morning. When Big Al got to the store about ten minutes before 8 the next morning Martha was waiting outside the front door. Big Al immediately thought Martha looked very much like his deceased mother and was very impressed with her apparent promptness and motivation. During the interview Big Al didn't understand enough about accounting or what needed to be done in the office so he asked Martha what she had done on her previous jobs. Martha's answers assured him that she could take care of all the accounting and banking and whatever other office related functions were required. He hired her at $600 per week.

ACCOUNTING POLICIES AND PROCEDURES

Martha told Big A1 she applied the accrual method of accounting using QuickBooks and applied other accounting rules, as follows:

Cash-all cash received by Big Al's Pumps is deposited into the Cash-Operating account. Cash is transferred from the Cash-Operating account to the Cash-Payroll and CashMoney Market accounts as needed and available, respectively.

Accounts Receivable/Bad Debts Expense-the collection terms for sales on account are 1/10, net 30. Martha told Big A1 most customers pay within ten days and take the discount. She added that the customers who don't get the cash discount pay within 30 days. The allowance method, using the percent of accounts receivable method, was applied for the estimation of bad debt expense. Martha told Big A1 she wrote off a couple of uncollectible accounts during 2012.

Inventory-the FIFO method was applied for the cost flow assumption. Big A1 makes sure the order sizes are large enough to receive quantity discounts from the manufacturer. Big A1 estimated the orders for each type of pump were enough to last for six to eight weeks. When Henry tells Big A1 they are low on a particular pump Big A1 calls in the order and when it's ready, usually in a day or two, Henry picks it up in the company van. Big A1 considered taking a physical inventory at the end of the year but was just too busy.

Property, Plant, and Equipment-during the year Big A1 purchased two company vehicles, a van for the pick-up and delivery of pumps and a small truck for himself. Both vehicles will be used one hundred percent for business purposes. He also purchased a small fork lift for the warehouse and office equipment including three desks, two computer work stations, and filing cabinets. Big AI also installed some leasehold improvements such as storage shelves in the warehouse and a sales counter and two display cases in the sales room. Depreciation is computed using the straight line method over various years depending on the type of asset.

Accounts Payable-Big A1 instructed Martha to pay all the bills immediately as they are received. He thought it was a good idea that payments to vendors and employees be signed only by him or Martha.

Long Term Debt-Big A1 signed a note to the Valley Bank for the receipt of $100,000 on February 1, 2012 and another $100,000 on October 1, 2012. The loan arrangements were for the payment of interest only, at 6% per annum, until January 1, 2015 at which time the remaining principal balance would be converted to a mortgage. Financial statements must be provided to the Valley Bank annually by March 1 following the close of the year. The terms include immediate principal repayment if certain financial conditions aren't met.

Al B. Seeinyou, Capital-to start the business Big A1 invested $100,000. He didn't withdraw any cash from the business during 2012, instead living off his savings.

Sales and Cash Collections-sales are approximately evenly split between cash sales and sales on account. Cash collections, whether from current sales or from accounts receivable, are deposited into the Cash-Operating account. Martha said sales increased only slightly from January through December 2012.

Wages-all employees are paid for a five day work week and paid weekly on Friday