What is the statute of frauds?
The statute of frauds stipulates that certain kinds of contracts must be in writing to be enforceable. Under the statute of frauds, the contract must be memorialized in writing, it must be signed by the party to be charged, and there must be sufficient evidence that the contract exists.
There are a number of types of contracts that fall under the statute of frauds. This would include contracts involving the sale of land, contracts that cannot be performed within one year, surety agreements, marriage contracts, contracts involving the sale of goods over $500, and executor arrangements.
You might also be interested in...
What type of documentation should the audit team collect for the inventory cycle?
The audit team should collect documentation related to purchasing inventory and selling inventory. When purchasing inventory, the audit team should focus on the voucher package, which is the purchase order, receiving report, and invoice related to a purchase (receieved from supplier/vendor). When a company purchases inventory, that will increase their inventory balance. When a company […]
What is lapping?
Lapping is a fraudulent accounting techniques that occurs when an employee alters the financial records to hide cash stolen from the company. Basically, the employee will take subsequent cash received and apply it to an accounts receivable to cover the theft. The employee must keep up this practice, otherwise the fraud will be discovered. As […]
What is check kiting?
Check kiting is a form of fraud that involves floating checks from one bank account to another. Generally, the objective of check kiting is for the client to attempt to make use of a fund or bank account that might not actually exist.