Reference no: EM132716293

Problem 1: Which of these arrangements of duties could most likely lead to an embezzlement or theft?

Multiple Choice

Option 1: The cashier prepared the bank deposit, endorsed the cheques with a company stamp, and took the cash and cheques to the bank for deposit (no other bookkeeping duties).

Option 2: The financial vice-president received cheques made out to suppliers and the supporting invoices, signed the cheques, and put them in the mail to the payees.

Option 3: The inventory warehouse manager is responsible for making the physical inventory observation and reconciling discrepancies to the perpetual inventory records.

Option 4: The accounts receivable clerk received a list of payments received by the cashier so that he could make entries in the customers' accounts receivable subsidiary accounts.