Analyzing internal control

Assignment Help Accounting Basics

Reference no: EM13140739

Case: Analyzing Internal Control

Pacific Company is a rapidly growing start up business. Its bookkeeper, who was hired one year ago, left town after the company's manager discovered that a large sum of money had disappeared over the past six months. An audit disclosed that the bookkeeper hasd written and signed several checks made payable to her fiance and then recorded the checks as salaries expense. The fiance, who cashed the checks but never worked for the company, left town with the bookkeeper. As a result, the company incurred an uninsured loss of $184,000.

Evaluate Pacific's internal control system and indicate which principles of internal control appear to have been ignored.

Reference no: EM13140739

Questions Cloud

Prepare a statement of retained earnings for year : A cash dividend of $ 1.20 per share was declared and distributed on the 50,000 shares of com-mon stock outstanding. Prepare a statement of retained earnings for the year.

What output maximizes the white companys profit : What output maximizes the White Company's profit and what is the White Company's economics profit? Should the White Company continue in business or shut down in the short-run? Why?

Describe your experience of earth : Describe your experience of Earth/space science from when you were a student in primary school. What misconceptions did you have about Earth's place in space?

Interest in continuing the partnership : Barry owns a 25% interest in a continuing partnership. the partnership distributes a $20,000 year-end cash bonus to all the partners. in a proportionate nonliquidating distribution, the partnership also distributed property (basis of $2,000; fair ..

Analyzing internal control : Pacific Company is a rapidly growing start up business. Its bookkeeper, who was hired one year ago-Evaluate Pacific's internal control system and indicate which principles of internal control appear to have been ignored.

What is her recognized gain and adjusted basis : She receives real estate with a fair market value of $72,000 and Todd assumes the mortgage. What is her recognized gain and adjusted basis for the real estate received?

Define eliminate the cost of calling cards : In order to eliminate the cost of calling cards, the company in the above problem is considering a new policy that requires blocked callers to redial over and over until they get a trunk.

How many molecules of no2 are produced : How many molecules of NO2 are produced when 5.38 mol of ammonia is completely reacted?

Business reports : Business reports or management reports present information and (usually) make recommendations on a situation or problem. Typically, this format requires you to collect information and analyse it according to one or more theoretical frameworks.

User Account

All Pages