Rapid Repair Company is a small auto body shop It
Rapid Repair Company is a small auto body shop. It has only a few employees. The owner of Rapid Repair, who is also its president and general manager, makes daily deposits of customer checks in the company bank account and writes all checks issued by the company. The president also reconciles the monthly bank statement with the books when the bank statement is received in the mail.
The assistant to Rapid Repair’s president renders secretarial services, which include taking dictation, typing letters, and processing all mail, both incoming and outgoing. Each day the assistant opens the incoming mail and gives the president the checks received from customers. The vouchers attached to the checks are separated by the assistant and sent to the bookkeeper, along with any other remittance advices that have been enclosed with the checks.
The bookkeeper makes prompt entries to credit customers’ accounts for their remittances. From these accounts, the bookkeeper prepares monthly statements for mailing to customers. Other employees include mechanics and other auto repair personnel. For the thefts described next, explain briefly how each could have been concealed and what precautions you would recommend for forestalling the theft and its concealment:
1. The president’s assistant takes some customers’ checks, forges the company’s endorsements, deposits the checks in a personal bank account, and destroys the check vouchers and any other remittance advices that have accompanied these checks.
2. The same action is taken as in requirement 1, except that the vouchers and other remittance advices are sent intact to the bookkeeper.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help