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26- you are investigating possible hidden income in a divorce dispute involving an automobile repair shop...

26- you are investigating possible hidden income in a divorce dispute involving an automobile repair shop with five bays. There are five 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 profit per year. If the owner reports $42,500 of gross income, what is your opinion?

55- what are some ideas to help prevent procurement fraud through phantom vendors?

58- 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. dauber tracker d. CCH citatory e. Shepardizing 4-can a gain or loss be recognized when dealing with digital currencies?

12- when must a business fie form 8300?

13-what is the penalty for failure to file a form 8300?

14- are wire transfers considered to be cash under the form 8300 reporting guidelines? Are nonprofit organization exempted from form 8300 reporting requirements?

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Answer #1

26) The Revenue from automobile repairing = $60 per hour *7 Hours*315 days*5 Mechanics

= $661,500

Cost of a automobile repairing shop(Wages) = $30 per hour *8 Hours*315 days*5 Mechanics

=$378,000

Gross Income for the year = $661,500 - $378,000 = $283,500

The owner's report the gross income is $42,500, so it is wrong actual gross income $283,500. He might be showing less gross income for reducing taxes.

55) There are some ideas to help prevent procurement fraud through phantom vendors are for having vendors list ,creating parking lot test and verifying list of vendors with the sales department.

58) Option b)audit technique guidelines is correct answer because audit guidelines provide insight issues and accounting methods for gathering information about new industry

12) If there is a reported payment of cash over $10,000 then a business must fie form 8300

13) There is a penalty of $100 per case for failure to file a form 8300

14) No, wire transfers does not consider  cash under the form 8300 reporting guidelines because dealing of amount is done is less than $10.000. The nonprofit organization are not exempted from form 8300 reporting requirements.

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