Edsel Edison, an employee of Go Fast & Play Hard, has been with the company since it
Question:
Edsel Edison, an employee of Go Fast & Play Hard, has been with the company since it opened four years ago. Go Fast is a company that is still experiencing growing pains, and current management believes that the company can make money if costs are kept low. This is the reason “Easy” Smith, the operating manager, has given for not implementing more internal controls. In particular, he has rejected the recommendation to add additional employees to produce better separation of duties as unnecessary. As a result, Edsel is the only person who does the accounting, including the billing and col-lection, for Go Fast.
Easy” had become a bit uneasy lately. He’d noticed that within the last two years, cash collections on accounts receivable do not seem to have been as high as he would have expected. Business, though, had been booming, and “Easy” has been able to negotiate several new contracts over the last year. He’d asked Edsel about the lower level of col-lections and told Victoria Bass, a forensic accountant, “Edsel says it’s the economy. You know . .. times are tough. I’ve experienced tough times even when the economy is going well.” “Easy” filled Victoria in about various aspects of the business such as the fact that there are three other persons who work in the shop: Theresa Parks, the receptionist/ secretary; Andre Green, the assistant salesperson; and Patrick Fine, who is in charge of promotions and advertising. She learned that on Fridays, Edsel, Theresa, Andre, and Patrick, who have all been with the company since it began, go out to lunch together
a. What documents/files would Victoria want to see before interviewing anyone?
b. What other procedures, if any, should Victoria consider using to determine whether her suspicions of Edsel* are valid?
c. Should she consider interviewing Theresa, Andre, and Patrick? Why or why not?
Business Communication
ISBN: 978-1439080153
8th edition
Authors: Buddy Krizan, Patricia Merrier, Joyce P. Logan, Karen Schneiter Williams