Reference no: EM133020526

Question - Dr. Adam Mcgraw, a family physician in private practice, employs Jennie Kimber, Arthur Jones, and Maria Blake. Dr. Mcgraw is well-versed in office administration procedures and has divided the cash receipt responsibilities as follows. Kimber checks her mail and makes a three-part tally of the money she has received. Jones, the cashier, receives one copy of the list and deposits the receipts in the bank every day. Blake, the record keeper, obtains a copy of the list and enters money into the accounts of the patients. The office clerks have an expensive lunch once a month, which they pay for as follows. Jones first endorses and cashes a patient's check under Dr. Mcgraw's name at the bank. Kimber then shreds the check's accompanying remittance instruction. Finally, Blake records the payment as a miscellaneous credit on the customer's account. The three rationalize their actions by citing their low salaries and the fact that Dr. Mcgraw is unlikely to miss the money.

Required -

1. Who in Dr. Mcgraw's office is most suited to reconcile the bank statement?

2. Would this office fraud be discovered by a bank reconciliation?

3. Make recommendations for additional internal controls that Dr. Mcgraw could use.