An accountant hid his theft of 200 from the companys bank

Reference no: EM13481663

Internal Control Procedures: As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store. For each of the following occurrences, tell which of the control procedures was lacking. Also, recommend how the company should change its procedures to avoid the problem in the future.

A. Jim's Supply Store's losses due to bad debts have increased dramatically over the past year. In an effort to increase sales, the managers of certain stores have allowed large credit sales to occur without review or approval.

B. An accountant hid his theft of $200 from the company's bank account by charging the monthly reconciliation. He knew the manipulation would not be discovered.

C. Mark Peterson works in the storeroom. He maintains the inventory records, counts the inventory, and has unlimited access to the storeroom. He occasionally steals items from inventory and hides the theft by including the value of the stolen goods in his inventory count.

D. Receiving reports are sometimes filled out days after the shipment has arrived.

Reference no: EM13481663

Questions Cloud

After looking at the description of the members of the : wal-martlocate the 2009 form 10-k for wal-mart in appendix a and consider the following questions1. with respect to

Land enterprises has purchased new equipment on a long-term : land enterprises has purchased new equipment on a long-term payment plan. the contract calls for land to pay 50000 at

Pagilla company manufactures four products-andol incol : sales-value-at-split-off methodpagilla company manufactures four products-andol incol ordoland exsol-from a joint

The price includes a two-year warranty during the current : a company sells personal computers for 2300 each. the price includes a two-year warranty. during the current year the

An accountant hid his theft of 200 from the companys bank : internal control procedures as an auditor you have discovered the following problems with the accounting system control

Determine total product cost using the sequential method of : delille company manufactures both traditional toothpaste and geltoothpaste with each type of toothpaste produced in

Compute the cost per equivalent unit of materials compute : pet products manufactures dry dog food. the following information pertains to the month of feb.beginning wip 5000

Gven the following information sales 5000 fixed expense : given the following information sales 5000 fixed expense 2000 variable exp 1750 what would expected net income be if

Fowler manufacturing company has a fixed cost of 225000 for : fowler manufacturing company has a fixed cost of 225000 for the production of tubes. estimated sales are 150000 units.

User Account

All Pages