Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.
Answer to relevant QuestionsKnott Inc. has a petty cash fund of $750.(a) Since the petty cash fund is only $750, should Knott Inc. implement controls over petty cash?(b) What controls, if any, could be used for the petty cash fund?Prepare journal entries for each of the following:a. Issued a check to establish a petty cash fund of $900.b. The amount of cash in the petty cash fund is $115. Issued a check to replenish the fund, based on the following ...Sergio Flores works at the drive-through window of Big & Bad Burgers. Occasionally when a drive-through customer orders, Sergio fills the order and pockets the customer’s money. He does not ring up the order on the cash ...Identify the errors in the following bankreconciliation:The cash account for Remedy Medical Co. at April 30, 2014, indicated a balance of $18,885. The bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement and the accompanying canceled ...
Post your question