Explain in your own words why separation of duties is often described as the corner-stone of internal control for safeguarding assets. Describe what can happen if the same person has custody of an asset and also accounts for the asset.
Answer to relevant QuestionsLook at each of the following employees of Amanda’s Restaurant. Which of the elements of the fraud triangle apply?Perceived pressure (P)Perceived opportunity (O)Rationalization (R)_____ 1. As the bartender puts $100 in ...Each of the following situations has an internal control weakness.a. Linda Grable has been your trusted employee for 30 years. She performs all cash-handling and accounting duties. Linda just purchased a new Lexus and a new ...Rex Banner is the manager of a Stop Mart convenience store. He has been employed by the company for 12 years, the last 9 years as a store manager. Rex applied for a promotion to regional manager, which oversees all 30 ...Purpose: To help you understand the importance of cash flows in the operation of a small business.You’re having a tough time figuring out why your actual cash is always coming up less than the amount that the general ...Doherty Towing Service, Inc., earns service revenue by towing vehicles for AAA.Doherty Towing Service’s main expenses are the salaries paid to its employees. Account for the following transactions in the expanded ...
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